The International Organisation of Securities Commissions (IOSCO) has highlighted the major regulatory challenges the capital markets sector faces, such as Dodd-Frank and the European Market Infrastructure Regulation (EMIR) as part of its report on a meeting that it hosted in Madrid, Spain, last week. The meeting attracted 60 market participants from more than 20 countries, including some 30 international financial associations and investor groups.
IOSCO board chair Greg Medcraft chaired the meeting, which covered a range of subjects, including IOSCO´s work on the extensive international financial regulatory reform agenda. He outlined the challenges faced by securities regulators globally and the role IOSCO will play in addressing them.
“The major challenges we face are structural change, the risks posed by innovation and the on-going globalisation of our markets,” Medcraft told his audience. “By being proactive and forward looking, IOSCO through its standard setting work, engagement with industry and stakeholders and co-operation among its members can make a significant contribution to those challenges.”
David Wright, secretary-general, and Tajinder Singh, deputy secretary-general, described IOSCO’s current work programme and outlined new initiatives, including the creation of a committee on retail investors and a task force on cross border regulation approved at the recent board meeting in Montreal, Canada.
Participants welcomed IOSCO’s work on cross border regulation and emphasised its importance in addressing the issues many face in conducting business across a number of jurisdictions.
IOSCO secretariat staff also outlined the risks IOSCO’s research team had identified in recent work -including risks posed by the low interest rate environment, managing collateral, the risks posed by central counterparties and cyber-crime.
The meeting also discussed the opportunities behavioural economics offers securities regulators. In leading discussion on this topic, Medcraft emphasised the growing role behavioural economics and social media will play in IOSCO´s work, particularly in its efforts to improve informed decision making by retail investors.