Global markets watchdog proposes closer scrutiny of stock exchanges
– Global securities watchdog IOSCO proposed detailed guidance on how regulators should supervise stock exchanges more closely to negate risks from changes in business practices.
– Exchanges have increasingly become publicly listed companies over the past two decades while remaining self-regulatory in some cases.
– Bourses have expanded geographically and diversified into technology and data services, forming partnerships with companies like Google Cloud and Microsoft.
– Brexit has contributed to increased cross-border operation of exchanges and other types of trading venues in Europe.
– The market evolutions have influenced the way exchanges and exchange groups are organized, potentially creating new conflicts of interest and operational challenges.
– The report proposes six “good practices” for regulators to assess how exchanges are structured to ensure independence in discharging regulatory obligations.
