CR/01/2026 Off-exchange Derivatives Market Good Practices

Good Practicesconcerning over-the-counter Commodity The Board of theInternational Organization of Securities Commissions The International Organization of Securities Commissions website © International Organization of Securities Commissions 2026.All rights reserved. Brief excerpts may be reproduced or translatedprovided the source is stated. Foreword How to Submit Comments The Board of the International Organization ofSecurities Commissions (IOSCO) is seekingcommentson this consultation report on Comments may be submitted using thisformon or before19 June 2026. GoodPracticesconcerningover-the-counter(OTC)markets which follows the Ifyou require technical assistance oncompletingthe survey,please contact: If you have questions about the report or theconsultation,please IOSCOconducted the Review of fiveSelected Principles, as defined herein,thataim to address excessive commodity marketvolatility,OTCcommodityderivativestransparency and orderly functioning of thecommodity derivatives markets. The IOSCOReport published in November 2024 outlinesthe findings from the Review.IOSCO believes Important:All comments will be madeavailablepublicly,unlessanonymityisspecificallyrequested.Comments will beconverted to PDF format and posted on the Questions for Consultation IOSCO invites comments generally on theproposed guidance in this report, as well asseeksviews on the specific consultation Question1:Do you agree with the keyaspects and scope of the proposed goodpracticesoutlinedin this ConsultationReport?Pleaseshare any specificcomment This consultation reportreflectsthe furtherwork conducted by seeking to support theeffectiveimplementation of Principles 12, 15and 16, which relate to the collection and Question 2:Are there any further key goodpractices that could be considered? Question 3:Under what conditions – such asrelevanttriggers,scope and frequency–shouldMarket Authorities require OTCposition data to be reported to them? What positiondata for effective monitoring andoversightof relevant exchangetraded Question 10:How do you contemplate thatthis consultation report may also be relevanttoOTC execution venues,such as swapexecutionfacilities,multilateraltrading Question 4:Do you have suggestions forMarket Authorities’improved use of existingdatapipelines for purposes of ensuring Question 5:What metrics or indicators doyou consider appropriate for assessing thedegreeof interconnectedness between a •Atwhat level would such ameasure be considered significantenough to indicate that activity intheOTC market can affect the •Wouldit be helpful for us toprovide further guidance on whatconstitutes a significant impact in Question 6:What types of information couldhelp Market Authorities identifythe beneficial Question 7:Do you foresee any challengesforMarket Authorities in identifying,andobtaining data on,the underlying beneficial Question 8:In what circumstances may it benecessary for regulators to intervene in OTCmarkets,and what potential impact,both Table of Contents Executive Summary List of Abbreviations I.Introduction 4 II.Background and Context 12 Executive Summary Commodity market participants often hold positions across exchange-traded,OTC and physical markets. This interconnectedness can affect price formation,increase market volatility, and heighten the risk of market abuse, particularlywhenMarket Authorities lack visibility over large concentrated positions. The Principles for the Regulation and Supervision of Commodity DerivativesMarkets (the Principles) aim to ensure that commodity derivatives marketsserve their core functions of facilitating price discovery and hedging, whileremaining free from manipulation and abusive practices. Implementing these In October 2023, IOSCO undertook theReview of five Selected Principlesaddressingexcessive volatility,transparency–particularly regarding OTCpositions – and orderly functioning of commodity derivatives markets. TheReviewfound broad compliance among regulators and exchanges but Past market events, including episodes of heightened volatility and tradingsuspensions, have demonstrated how risks arising from opaque or fragmentedOTC positions can propagate across the financial system and undermine Building on the Review’s findings, IOSCOinitiated the development of goodpracticesto strengthen Market Authorities’monitoring and interventionmechanisms, with a primary focus on improving access to OTC position data.The proposed good practices – developed through engagement with marketparticipants, trade associations, and exchanges –propose a flexible, risk- The proposed good practices aim to: •Strengthen the implementation of Principles 12, 15, and 16 in relation tothe collection andaggregation of OTC derivatives data,includingbeneficialownership,to support effective surveillance,alongside •Set expectations about the timely regulatory intervention to prevent oraddress disorderly market conditions, particularly where risks in OTCmarkets may