It identifies key findings from recent market outages and sets forth five good practices to assist regulators, trading venues and market participants in preparing for, and managing, future market outages and thereby helping improve market-wide resilience.
The final report addresses the need for improved preparedness and management of market outages to ensure market resilience and investor confidence.
The good practices cover five key areas:
• Outage Plans
• Communication Plans
• Reopening of Trading
• Closing Auctions / Closing Prices
• Post-Outage Plans
These good practices are designed to offer flexibility for adoption across various trading venues, asset classes, and market structures. They are generally applicable to market outages caused by different types of root causes.
Isadora Tarola, Chair of the IOSCO Committee on Regulation of Secondary Markets (Committee 2), said: "Market Outages can be highly disruptive. Therefore, it is important for trading venues to consider adopting the proposed good practices. This can contribute to market resilience and help ensure orderly trading during outages. IOSCO remains committed to supporting initiatives that promote financial stability and investor protection."
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