From the Regulators

Regulators are focused on strengthening market resilience

By James Langton |

Cybersecurity, market resilience, and the emergence of financial technology (fintech) are among the issues headlining the annual meeting of he International Organization of Securities Commissions (IOSCO) in Montego Bay, Jamaica this week.

The IOSCO board reports that it has:

> agreed to review the impact of post-crisis regulatory reforms in derivatives markets;

> discussed potential enhancements to the governance of the international standard-setting process for financial audits; and

> continues to work on the issue of liquidity risk management in the asset management industry.

The board also heard a presentation on a possible regulatory framework for penetration testing, which could help firms uncover cybersecurity vulnerabilities.

"IOSCO members have taken important steps this week to address the key challenges facing securities markets — including the risks around cyber security, changing market structure, and financial technology — while also preparing markets to play a bigger role in financing the global economy," says Ashley Alder, chair of the IOSCO board, and CEO of Hong Kong's Securities and Futures Commission (SFC), in a statement.

In addition, the IOSCO board agreed to develop guidance on selecting financial benchmarks.

It also recognized several new signatories to its multilateral memorandum of understanding, which facilitates cross-border cooperation among regulators. The new signatories include authorities in Panama, Kuwait, Qatar, Abu Dhabi, and Uganda, with Angola expected to join next month.