MARKET IN FUTURE

The futures market regulators should improve the availability and quality of information on commodities traded in related physical and OTC derivatives markets. Such information may be needed to understand price formation or to monitor and detect manipulation in the futures markets. This is one of the key recommendations made by the task force on commodity futures markets.The international organisation of securities commissions' (IOSCO) technical committee on Thursday released a final report prepared by its Task Force on Commodity

Futures Markets (Task Force) in Madrid (Spain) which contains recommendations to improve the supervision of commodity futures markets and global regulatory cooperation."Commodities markets, and the trade in their related futures, are fundamental to a vibrant global economy. Given the growth in these markets, and recent volatility in commodities prices, there are concerns about the possibility of market manipulation involving both these futures markets and related physical and OTC derivative markets,” Kathleen Casey, chairman, Technical Committee, said.

The other major recommendations focused on the ability of futures market regulators to access relevant information concerning related commodity markets over which futures market regulators generally do not have jurisdiction, such as the cash and OTC derivatives markets, improving regulators' supervisory and enforcement powers and the enhancement of global cooperation. The Task Force, which was formed following concerns around the price rises and volatility in agricultural and energy commodities in 2008.

Focused on whether futures market regulators' supervisory approaches was appropriate in light of recent market developments.While reports reviewed by the Task Force concluded that fundamentals rather than speculative activity was the plausible explanation for price changes, the Task Force has made a number of recommendations to improve the transparency and supervision of these markets.Task Force called for measures to improve regulators' supervisory and enforcement powers and the enhancement of global cooperation.