The International Organization of Securities Commissions (IOSCO), the global standard setter for securities regulation, is exploring the opportunities and challenges presented by distributed ledger technology or blockchain.
In a press release, the organization said that it met for two days in Madrid to discuss and respond to various ongoing and emerging challenges facing global securities markets. It pointed out that the meeting was preceded – “firstly by Round Tables discussing recent market developments and volatility in world capital markets and, secondly, the challenges and opportunities posed by fintech and – more particularly - distributed ledger technology – or block chain.”
The roundtable discussion on blockchain technology included leading market analysts. It highlighted the potential of new financial technologies to improve the efficiency of global markets, and provide emerging market jurisdictions with the infrastructure needed to further develop their capital markets.
The Board discussed and recommended intensifying work on technological change – with a focus on harnessing the opportunities while mitigating the risks. Among other things, the board
“[A]greed on further research on financial technology subsectors with particular relevance for securities regulators, including blockchain.”
It also supported further work on the use and regulation of automated advice tools in securities markets and understanding the risks arising from the use of cloud technology.
The IOSCO Board is the governing and standard-setting body of the International Organization of Securities Commissions (IOSCO). It is made up of 34 securities regulators. Mr Greg Medcraft, chairman of the Australian Securities and Investments Commission, is the chair of the IOSCO Board.
