The International Organization of Securities Commissions (IOSCO) made one more step ahead in regulation of derivativesí markets.
The leading international policy forum for securities regulators IOSCO, recognized as well as the global standard setter for securities regulation published its Final Report on International Standards for Derivatives Market Intermediary Regulation (DMIRR). Although the report is targeted to intermediaries dealing with non-retail clients it is expected that in the future it will impact the binary options industry too.
The report is a follow up of G-20 leadersí commitment in 2009 focused on the reform of the OTC derivatives market in response to the crisis.
The entitled International Standards for Derivatives Market Intermediary Regulation Report sets international standards for the regulation of market participants operating in the business of dealing, making a market or intermediating transactions in over-the-counter (OTC) derivatives.
As stated by IOSCO, the report contains recommendations, related to:
- Obligations of DMI (Derivatives Market Intermediary) in support of mitigating the systemic risks
- Requirements envisioned to administer counterparty risk in the OTC derivatives markets
- Protecting participants in the OTC derivatives markets from unfair, improper or fraudulent practices.
DMIRR takes into account discrepancies between the OTC derivatives market and the traditional securities markets, like also the differences in jurisdictional approaches of international market authorities.