INTERNATIONAL: IOSCO Publishes Thematic Review of Implementation Progress in Regulation of Derivative Market Intermediaries

Wednesday July 29 2015

The Board of the International Organization of Securities Commissions (IOSCO) has published its report on the Review of Implementation Progress in Regulation of Derivative Market Intermediaries (DMI).

The report sets out the findings on the progress jurisdictions have made in adopting legislation, regulation and policies in relation to derivatives market intermediaries in the six reform areas addressed in IOSCO’s 2012 report on International Standards for Derivative Market Intermediary Regulation. The DMI Standards are for the regulation of market participants that are in the business of dealing, making a market or intermediating transactions in over-the-counter (OTC) derivatives, developed as part of the G20 commitment to reform the OTC derivatives market in response to the crisis.

The six reform areas are:

1. Scope of regulatory reform — including the framework for regulation and definition of DMIs;
2. Registration/licensing standards; 
3. Capital standards or other financial resources requirements for non-prudentially regulated DMIs; 
4. Business conduct standards; 
5. Business supervision standards; and 
6. Recordkeeping standards.

In general, the review found that participating jurisdictions have made significant progress in adopting legislation, regulation or policy in the areas covered by the DMI Standards.

Many jurisdictions are in the process of amending their regimes in respect of DMIs and derivatives related activities.

Click on the link above for further details.