The International Organization of Securities Commission (Iosco) has urged for better co-ordination in the implementation of over-the-counter (OTC) derivatives rules, Financial News reports. The regulators should coordinate their efforts in facilitating the transition of OTC derivatives trading to organized platform trading to ensure that the objectives of the G-20 are achieved, said Iosco Chairman, Hans Hoogervorst.
The Iosco report comes as both U.S. and the European trading firms have to trade certain types of derivatives on regulated venues and through clearing houses. As per the report, standardized derivatives contracts with a suitable degree of liquidity will be suitable to be traded on organized platforms. Suitable platforms will have seven key characteristics, including registration with a competent regulatory authority as well as fair and equal access to trading participants.
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