IOSCO/MR/19/2020
Madrid, 26 June 2020
The Board of the International Organization of Securities Commissions (IOSCO) today published a series of eleven good practices on processes for deference to assist regulatory authorities in mitigating the risk of unintended, regulatory-driven market fragmentation and to strengthen international cooperation.
Wholesale securities and derivatives markets are global in nature and many market participants operate on a cross-border basis. As a result, numerous authorities have implemented deference processes that allow them to rely on one another to regulate and supervise these market participants and help reduce potentially duplicative or conflicting regulations.
Over time, the use of deference between regulators has significantly increased, in parallel with enhanced cross border capital flows. IOSCO’s 2019 Report on Market Fragmentation and Cross-Border Regulation, which was submitted to the G-20, suggested that IOSCO should identify good practices to enhance the processes for deference determinations further.
Article source: https://www.iosco.org/news/pdf/IOSCONEWS572.pdf