CFTC and FSA to lead commodities task force

CFTC and FSA to lead commodities task force

The US Commodity Futures Trading Commission (CFTC) and the UK's Financial Services Authority (FSA) will head up a task force - established by the technical committee of the International Organisation of Securities Commission (IOSCO) - that will examine regulation of the commodities markets.

IOSCO says the decision to establish a task force follows discussions amongst its members focusing on concerns around increases and volatility in commodity futures markets.

The committee will examine the changing nature of commodities futures markets, considering issues such as technological development, globalisation, product innovation and increasing participation of new types of investors.

The task force will also consider whether supervisory approaches are keeping pace with developments in the market and whether regulators are cooperating sufficiently to deal with the increasing globalisation of the markets.

IOSCO says members from both developed and emerging market economies will be involved in the work.

"Given the global nature of the commodity markets, it is important to share views with our international counterparts and to coordinate supervisory approaches," says CFTC acting chairman Walt Lukken. "As commodity markets grow and change, regulators around the globe must consider ways to enhance our approaches to supervision."

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