Global Correspondence

GFMA Submits Commens to IOSCO and the FCA on Implementation of PRA Principles

The Commodities Working Group (CWG) of GFMA provides comments to the International Organization of Securities Commissions (IOSCO) and the Financial Conduct Authority (FCA) on the implementation of PRA Principles (Principles) which were published October 2012.

GFMA welcomes the development of these Principles by IOSCO as a step towards ensuring that key oil market benchmarks are subject to robust, consistent, transparent and sound practices. Moreover, we fully endorse IOSCO’s review of the implementation of the Principles to ensure the smooth functioning and transparency within these markets.

While supportive of the progress to date, GFMA considers that more could be done to ensure market integrity. GFMA believes that PRAs should move forward with codes of conduct in line with the Principles. These codes must be sufficiently robust to ensure transparency of methodology and price assessment, and also to strengthen governance oversight, internal controls (including identification of trade anomalies and verification by third parties) and management of conflicts of interest.

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