The International Organization of Securities Commissions (IOSCO) has launched a consultation on proposed good practices for commodity markets.
In the report, Commodity Storage and Delivery Infrastructures: Good or Sound Practices, published for consultation on Wednesday, IOSCO proposes the adoption of practices designed to bolster commodity markets by enhancing transparency and ensuring a robust environment for the physical storage and delivery of commodities.
The proposals are intended to help storage infrastructure firms and their regulators to identify and address issues that could impact the pricing of commodity derivatives, market integrity and efficiency.
“The overarching objective of the good or sound practices is to create a framework that incentivises the market to adopt best practices and self-correction, rather than one that prohibits certain behaviours,” IOSCO says in a news release.
The proposed practices cover several broad areas, including oversight, transparency, conflicts of interest, fees and incentives, and operations.