Regulation during Covid-19
An article by Tajinder Singh, Deputy Secretary General, at the International Organisation of Securities Commissions (IOSCO), this week highlighted the work that IOSCO has done to help keep capital markets open and functioning during the pandemic.
So far, this has included coordinating a range of regulatory flexibility, including reducing regulatory burdens such as deferring the final implementation of margin requirements for non-centrally cleared derivatives.
Ensuring information flow was also crucial, with the application of accounting standards and disclosure of timely and high-quality information about the impact of the pandemic continuing to be of key importance. In addition, IOSCO set up an information repository to help member regulators learn from each other’s experiences.
Singh points out some other interesting questions raised by the pandemic. The crisis has helped regulators focus on their objectives of why they regulate markets, and also tested the regulatory system put in place after the 2008 financial crisis.
Going forward, Singh highlights how the crisis has raised questions around the appropriate balance of equity and debt, and could perhaps prompt another look at the interconnected nature of banks, capital markets, and the ‘real economy’. Very much worth a read.
Read more on the World Federation of Exchanges site over here.
