IOSCO is under new rule 02 April 2013Sydney Reporter: Georgina Lavers
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Greg Medcraft, chair of the Australian Securities and Investments Commission, took over as chair of the International Organization of Securities Commissions (IOSCO) board at its Sydney meeting.
He succeeds Masamichi Kono of the Japan FSA. The board also elected Ontario Securities Commission chairman Howard Wetston as IOSCO vice chair following the retirement of Ethiopis Tafara.
The board meeting underscored IOSCO’s commitment to improving engagement with industry and the broader IOSCO membership, and was preceded by a round table attended by the board and seven financial services executives from Australia, Asia, Europe and North America to discuss emerging risks.
Some potential risks discussed included the global imbalances caused by capital flows, weaknesses in financial market infrastructure, high-frequency trading, market fragmentation, and cyber-attacks.
Board members expressed concern over the potential risks of the current low interest rate environment. Members generally agreed the search for yield could fuel the creation of new asset bubbles, particularly in emerging markets with largely undiversified economies. They noted that a sudden upward spike in interest rates could damage global economic growth.
The board also approved and welcomed the Union of Arab Securities Authorities, the Johannesburg and Nigeria Stock Exchanges, and The International Swaps and Derivatives Association (ISDA) as affiliate members of IOSCO.
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