IOSCO Recommends Trading Venues Adopt Mechanisms to Control Volatility

In a published consultation report, IOSCO made several recommendations to assist trading venues and regulatory authorities on the "implementation, operation and monitoring" of mechanisms to address extreme volatility events. IOSCO advised trading venues to implement volatility control mechanisms, provide information about such mechanisms to regulators and market participants, and communicate with other venues regarding similar securities or instruments. IOSCO also recommended that regulatory authorities review their procedures for monitoring trading.