Chaired by the SC, the Working Group on Regulation of Secondary Markets met to finalize a report on the legal and regulatory framework for exchange traded derivatives. The Working Group is a part of the Emerging Markets Committee of IOSCO.

The meeting was attended by senior officials from the regulatory authorities of several emerging markets including Brazil, Korea, Sri Lanka, Thailand and Turkey. Professor William Albrecht, former acting Chairman of the US Commodities Futures Trading Commission, acts as consultant to the group.

A spokesman of the SC said that the report addresses issues pertaining to exchange-traded derivatives.

"The report, which will have to be approved by the Emerging Markets Committee meeting in May in 1996, addresses a host of legal and regulatory issues which will face any start-up market. It is hoped that the document will be helpful to any jurisdiction contemplating the drafting of laws and regulations to enable exchange traded derivatives to develop with legal certainty, and yet encourage growth and innovation at the same time."

SC was elected as Chairman of the working group at the XIXth annual meeting of IOSCO in Tokyo in 1994. It works closely with the working party on the regulation of secondary markets of the Technical Committee of IOSCO which comprises members of developed markets.

Apart from chairing the working group on the Regulation of Secondary Markets, the SC is also an elected member of the Executive Committee of IOSCO.

IOSCO is an international organization comprising 125 members. Its objectives are to enhance cooperation between members to ensure better regulation of the markets, domestically and internationally; to exchange information and experiences to promote the development of domestic markets; to establish standards and effective surveillance of international securities transactions; and to provide mutual assistance to ensure the integrity of markets through application of standards and effective enforcement. IOSCO was established in 1975.