IOSCO Task Force issues report on the regulation of wholesale market conduct

12 June 2017

The report describes the tools and approaches that IOSCO members use to discourage, identify, prevent and sanction misconduct by individuals in wholesale markets.

The report identifies the tools used by market regulators to minimize misconduct risk arising from the particular characteristics of wholesale markets, such as a decentralized market structure, opacity, conflicts of interest involving market makers, size and organizational complexity of market participants, and increasing automation.

Mr. Ashley Alder, Chair of the IOSCO Board and Chair of the Task Force on Market Conduct, said: “Misconduct erodes investor trust and confidence in financial services and undermines the effective operation of financial markets, including wholesale markets. The LIBOR and FX scandals highlight the severe consequences when firms or individuals fail to manage risk effectively or to observe proper standards of market conduct. This report provides tools to help IOSCO members minimize conduct risk in wholesale markets.”

Full report

© IOSCO