A commission appointed by the Group of 20 nations is concerned about the reliance on individual judgments in deriving benchmark assessments at oil price- reporting agencies.
The International Organization of Securities Commissions published today an update to G-20 listing eight issues on the way in which price-reporting agencies operate that may lead to the markets being manipulated. Among the matters raised are conflict of interest, handling of complaints and methodology.
The G-20 appointed IOSCO in November to investigate the role played by the agencies, including Platts, the energy and pricing unit of McGraw-Hill Cos. (MHP:US), and Argus Media Ltd., in the functioning of oil markets, their methods of operation and governance and options for future oversight. Platts has reported on energy markets since 1909.
Madrid-based IOSCO brings together national market regulators from more than 100 countries to coordinate rules and share information. The committee is in the process of finalizing a draft set of recommendations that will be circulated for comment before delivering a final report to G-20 leaders later in the year.
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