15 February 2007

IOSCO: Multi-jurisdictional Information Sharing for Market Oversight

The IOSCO Technical Committee issued a report to promote, through non-prescriptive guidance, the enhancement of the supervision of markets and trading in member jurisdictions through the exchange of information on a routine or ad hoc basis.

At its meeting in Frankfurt, Germany, in October 2005, the TC approved a project specification on “multi-jurisdictional” information sharing. The TC mandated the TC Standing Committee on the Regulation of Secondary Markets (SC2)1 to examine the types of information that market authorities might share on a bi- or multilateral basis in order to facilitate their supervisory oversight of both (1) securities and related derivatives markets, and (2) parallel listing or trading. The mandate also required SC2 to consider, if appropriate, high level principles or other means to guide the development of operational arrangements in order to help ensure effective information flow between market authorities responsible for oversight of cross-border markets or trading.

In recent years, issuers have increasingly sought to raise capital internationally. Moreover, many investors, especially institutional investors, have been diversifying their portfolios geographically. As a result, investors from different countries now hold an increasing proportion of many issues of securities and other financial instruments. At the same time, the marketplaces for trading these instruments have also become more international.

Deadline for comments is 15 March 2007.

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