IOSCO has published Market Outages, a report addressing the need for improved preparedness and management to ensure market resilience and investor confidence.
The report identifies key findings from recent market outages and sets out five good practices to assist regulators, trading venues, and market participants in preparing for and managing future market outages.
The good practices cover five key areas:
- Outage plans
- Communication plans
- Reopening of trading
- Closing auctions / closing prices
- Post-outage plans.
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.
Isadora Tarola, Chair of the IOSCO Committee on Regulation of Secondary Markets (Committee 2)
