Report on Cooperation Between Market Authorities and Default Procedures
Foreword
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Representatives of regulatory bodies from 16 countries responsible for supervising the activities of the world's major futures and options markets (collectively, the "Authorities") met on May 16 and 17, 1995 at Windsor in the United Kingdom. After reviewing developments in, and discussing the regulatory implications of, the growing volume of cross-border transactions on international futures and options exchanges increasingly linked by common members, participants and products traded, the Authorities issued the "Windsor Declaration" which reflected points of consensus and called for further work by IOSCO on four issues of importance to regulatory authorities, financial intermediaries, futures and options exchanges and clearing houses: cooperation between market authorities; protection of customer positions, funds and assets; default procedures; and regulatory cooperation in emergencies. The Technical Committee of IOSCO, at its meeting in Paris in July 1995, mandated the Working Party No. 2 on the Regulation of Secondary Markets to undertake work on two of those issues, i.e. cooperation between market authorities and default procedures. The list of members of the Working Party is contained in the Annex. The result is two papers entitled "Cooperation Between Market Authorities" and "Default Procedures". In the course of preparing these papers, the Working Party received significant assistance regarding Information Sharing Arrangements (ISAs) from Working Party 4 on Enforcement and the Exchange of Information. Indeed, in the paper on "Cooperation between Market Authorities", the part on ISAs should be considered a joint work by the two Working Parties. Working Party No. 2 also received valuable comments on both papers from the Consultative Committee. The two papers were approved by the Technical Committee at its Rome meeting in March 1996. The Technical Committee believes that the two papers agreed are highly constructive and very useful in helping to promote a cross-jurisdictional understanding of the risks affecting markets and how international cooperation can help develop a response to these risks.
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Report on Cooperation Between Market Authorities and Default Procedures
