International Organization of Securities Commissions issues four publications on pre-hedging, ESG benchmark indices, secondary market disclosure and valuation information quality

The International Organization of Securities Commissions (IOSCO) published two final reports, a consultation report and a public statement covering pre-hedging practices, Environmental Social and Governance (ESG) indices used as benchmarks, secondary market disclosure by listed entities, and the quality of valuation information in financial reporting, reflecting outcomes from its board meeting in Madrid. The final report on pre-hedging reviews members’ current regulatory approaches, identifies potential issues and gaps in industry practices and codes, and sets out an IOSCO definition and recommendations intended to promote consistent interpretation and regulatory guidance across jurisdictions, asset classes and execution types. The final report on ESG indices as benchmarks compares ESG indices with IOSCO’s Principles for Financial Benchmarks and analyses key characteristics and vulnerabilities relative to traditional benchmarks, taking into account IOSCO’s recommendations for ESG ratings and data product providers and existing market and regulatory initiatives. The consultation on recommendations for secondary market disclosure seeks feedback on a proposed framework for periodic and event-driven disclosures by listed entities, including considerations for exchanges and issuers, while the valuation statement emphasises international consistency and robust issuer and auditor practices to support high-quality valuation information within financial reporting. IOSCO invited comments on the secondary market disclosure recommendations and indicated further board meeting outcomes will be published later in the month, including reports on tokenization of financial assets, neo-brokers and valuation of collective investment schemes.