A new report from the International Organization of Securities Commissions (IOSCO) says there's more work to be done to fully implement reforms to the creation and operation of financial benchmarks being adopted in response to a series of manipulation scandals.
IOSCO published its second review of the status of reforms to certain benchmarks stemming from the discovery of widespread market manipulation of various benchmarks. Those principles cover governance, benchmark methodology, and accountability. In particular, the review examines the implementation of IOSCO's revised principles for financial benchmarks for a set of foreign-exchange benchmarks, the WM/Reuters 4 p.m. Closing Spot Rate.
Overall, the review concludes that the benchmark administrator has made "very significant progress," with most of IOSCO's recommendations, but that there remains room for improvement in certain areas. "A certain amount of further work is required to fully address the recommendations, and implement the principles," the report says.
The review also makes a small number of additional recommendations involving governance, management of conflicts and disclosure.