AI, tokenisation, and credit default swaps (CDS) – these are three areas that deserve “increased focus”, according to the International Organization of Securities Commissions’ (IOSCO). The association has entered new work streams to reflect this prioritisation in an updated workplan for 2024, which is part of an overall two-year work programme it published in 2023.

Under the updated workplan, the five themes set out in the initial work programme remain: strengthening financial resilience; supporting market effectiveness; protecting investors; addressing new risks in sustainability and fintech; promoting regulatory cooperation and effectiveness.

In the theme of “supporting market effectiveness”, IOSCO will be assessing “concerns raised by some authorities related to a lack of transparency and liquidity in the single-name CDS market”. The organisation will carry out analytical work in 2024 and policy work in 2025.

PostTrade 360 Nordic 2024

Emerging technology

Perhaps unsurprisingly, the theme of “addressing new risks in sustainability and fintech” saw the biggest addition of new work streams. IOSCO will be introducing a two-year policy initiative that “aims to ensure the development of a shared understanding among IOSCO members on the issues, risks and challenges presented by emerging AI technology through the lens of market integrity, financial stability and investor protection”.

In addition, focus will be placed on the progress that has been made on the crypto-asset policy roadmap that was delivered at the turn of the year. The organisation will begin monitoring the implementation of its recommendations regarding crypto, digital assets, and decentralised finance (DeFi).