|Promote high levels of internationally accepted standards of best practice.|
Derivatives markets under the Commission’s jurisdiction are part of a global industry. Promoting high standards internationally supports the Commission’s regulatory efforts in the United States and encourages strengthened oversight worldwide. In addition, the use of consistent standards around the world allows market participants to determine where to deploy their capital based on objective factors such as cost, innovation, and an appropriate regulatory environment, rather than a perceived gap in regulation in one jurisdiction that might distort competition and result in regulatory arbitrage. This can be achieved through active CFTC participation in standard-setting bodies that encourage the development of high regulatory standards.
The Commission participates in the International Organization of Securities Commission (IOSCO), the standard setting body for derivatives and securities regulation. Within IOSCO, the Commission participates in five of the seven standing committees and various task forces, including co-chairing the Task Force on Commodity Futures Markets and the OTC Derivatives Task Force. Additionally, the Commission participates in the Financial Stability Board, G20 Working Groups, and other international bodies that facilitate the development of best practices. When participating in international standard setting bodies and working groups, the CFTC will strive to ensure that high-quality principles or best practices are promulgated in a manner consistent with the Commission’s overall regulatory policies.