José Carlos Doherty, AMCC Chair & ANBIMA CEO writes about the recent IOSCO Affiliate Members Consultative Committee (AMCC) gathering on 14 & 15 May 2017, as part of the IOSCO Annual Conference.
The proximity with the rest of IOSCO Community provided an opportunity for the AMCC to assess, along with IOSCO leadership and Policy Committee Chairs, the areas in which the Affiliate Members could provide further inputs.
It was also a chance to have Affiliate Members discuss timely matters - such as cybersecurity, fintech, and CCP recovery and resolution - and invite them to consider the effects of the changing regulatory environment, with keynote speeches from senior US and EU authorities.
I will provide a brief summary of the meeting outcomes further below, but first, here is a presentation about the AMCC and some of its latest achievements.
The AMCC has two main objectives: first, deliver meaningful and timely contributions to IOSCO and the regulatory community; and second, act as a forum for members to debate about shared concerns and state of the art initiatives.
To achieve both goals, we draw from the varied expertise of the Committee, which continues to be its greatest asset. In total, there are 66 members, from self-regulatory organizations, exchanges and market infrastructures, as well as international and regional associations with appropriate interest in regulation - including the WFE.
Exchanges and market infrastructures represent the largest group of members within the AMCC. Therefore, the close cooperation with the WFE aims at bringing the expertise of exchanges and market infrastructures in the dialogue with IOSCO, and making sure we avoid any duplication of work for the Committee, the Federation and their respective members. The collaboration has grown stronger during the last years, with the WFE successfully providing contributions on key issues for IOSCO, such as the debate around the safety and soundness of central clearing counterparties, the challenges and benefits of the implementation of circuit-breakers and, more recently, the report on Distributed Ledger technology (DLT) in the trading and post-trading space.
Over the last years, the AMCC has achieved significant progress in aligning its work to the IOSCO´s strategic agenda. This way, we are continuously looking to direct available resources to deliver contributions that are valuable to IOSCO and its members.
In this sense, the work in the area of fintech stands out as a notable achievement. The AMCC and its members delivered four reports on this topic by the end of last year – including the already mentioned WFE Report on DLT. All of those documents were designed according to demands from the CER, to contribute with IOSCO’s recently published Research Report on Fintech.
Another achievement was the work on cybersecurity. Last year, the Committee organized the second edition of the asset management cybersecurity benchmark survey. Results help us and respondents to better understand the industry’s standards, and how it has evolved over time. The exchange community has also contributed actively to the AMCC work on cybersecurity, responding to a survey about cyber security practices at exchanges and trading community, which fed into another IOSCO report.
The AMCC meeting in May provided a great opportunity to invite the IOSCO leadership - including the Board Chair, Secretary General and Committee Chairs - to assess the priority areas that the AMCC could direct its expertise.
While the AMCC remains fully committed to ongoing mandates relating to fintech, cybersecurity and investment funds data, this discussion evidenced new possibilities for cooperation with the rest of the IOSCO Community. To better prepare for such discussions, the AMCC will approach some of the following topics: how regulators are applying new technological developments to perform their activities; the OTC Derivatives reform and the costs associated with the resulting resiliency level; and mechanisms to address excessive volatility in organized markets.
This year, we will also have the 10th edition of the AMCC Regulatory Staff Training Seminar. The previous edition took place in Chicago and attracted approximately 130 people, from about 40 jurisdictions. This year’s event will take place in late September, in Mumbai, India, kindly hosted by the BSE. AMCC training seminars are open to all IOSCO members. Registrations are already open.
ANBIMA is the Brazilian Financial and Capital Markets Association. Our members represent all the different types of institutions that are active in Brazilian capital markets, such as commercial and investment banks, investment managers, and security brokerage companies.
Our major lines of action are the representation, education and certification, information and data provision, as well as self-regulation and supervision. Enhancements of market regulations, the definition of market standards and good practices are discussed within the Association.
In all our activities, we look out for experiences and best practices from abroad, and seek to set all our discussions in the broader international regulatory context. Participation at IOSCO and at the AMCC provides this international perspective, as well as constituting an important channel for showcasing the experience of the Brazilian market place, and highlighting the challenges and opportunities in the local implementation of international standards.
It has been a privilege to Chair the AMCC and further integrate it with the IOSCO structure. I look forward to continued cooperation with the IOSCO Chair, Mr. Ashley Alder, CEO of the Hong Kong Securities and Finance Commission, with the IOSCO Secretary General, Mr. Paul Andrews, with other IOSCO representatives and with all AMCC members. Cooperation with the WFE will be paramount to deliver the objectives set for ourselves.