The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published its Task Force on Commodity Futures Markets - Report to the Financial Stability Board. The Report sets out IOSCO’s current work on the supervision of commodity derivative markets, market transparency, and the ongoing monitoring of developments in OTC financial oil markets.

The Report was prepared in response to the G20’s request in Seoul, November 2010, for an update to be provided to the Financial Stability Board on IOSCO’s workstreams in support of the G20’s aim of improving the regulation and supervision of exchange-traded, OTC derivative and physical commodity markets. It also outlines IOSCO’s future plans and possible additional new areas of focus.

Hans Hoogervorst, Chairman of IOSCO’s Technical Committee, said: “IOSCO believes that its work to date on the review of the Tokyo Communiqué, price reporting agencies and the creation of a trade repository, demonstrates significant progress in advancing its mandate and responding to the G20’s requests on commodity derivatives and related physical markets.

“We remain focused on our goal of working to enhance supervisory best practice, improve transparency and support improved functioning in exchange-traded, OTC derivative and physical commodity markets.”

“However, while much of our recent work has focused on oil derivatives and the transparency and functioning of oil markets, IOSCO recognises that its focus should broaden to encompass other commodities, in recognition of the fact that other markets including agricultural markets are crucial for our economies and that each market has individual intricacies specific to their physical underlying.

“IOSCO is also considering placing its work on commodities markets on a more permanent basis within the organisation. This expanded focus will include making new recommendations for further work which is likely to lead to proposals to improve market transparency, oversight and anti-market abuse treatment for these commodities markets, where necessary.”