IOSCO assesses improvements in oil price reporting
On Sept. 17, the International Organization of Securities Commissions published its second review of the implementation of the principles for oil price reporting agencies. The principles, which were published in October 2012, are intended to enhance the reliability of oil price assessments that are used as the basis for derivatives. Although the principles are voluntary, the four main reporting agencies—Argus, ICIS, OPIS and Platts—are all working to implement the principles.
IOSCO’s review determined that no further annual implementation reviews are needed, given the progress to date and the agencies’ commitment to adhering to the principles on an ongoing basis. The review noted that the price reporting agencies have made the principles an integral part of their management policies and operational practices and commented that stakeholders generally view the principles as having a “positive impact” on the PRAs. IOSCO said, however, that it plans to continue monitoring the PRAs’ activities through the results of external reviews by independent auditors as well as ongoing engagement with the PRAs and interested stakeholders.
