Category Archives: IOSCO

IOSCO issues Statement on Non-GAAP Financial Measures to assist issuers in providing clear disclosure for investors

Financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) provide investors, analysts, and other users with a defined basis for conducting financial analysis and comparison among different entities. IOSCO recognises that in addition to GAAP based financial statements, issuers also convey financial information using financial measures other than those that are specified, defined or determined by GAAP, commonly referred to as non-GAAP financial measures or alternative performance measures. Non-GAAP financial measures can be useful to issuers and investors because they can provide additional insight into an issuer’s financial performance, financial condition and/or cash flow. The use of nonGAAP financial measures also can provide issuers with flexibility in communicating useful, entityspecific information. Problems can arise, however, when non-GAAP financial measures are presented inconsistently, defined inadequately, or obscure financial results determined in accordance with GAAP. Furthermore, non-GAAP financial measures typically lack a standardised meaning and, if so, are generally not comparable from one issuer to the next.

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IOSCO Seeks Greater Post-Trade Transparency for Credit Default Swaps

The International Organization of Securities Commissions (IOSCO) today published its final report on mandatory post-trade transparency for the credit default swaps (CDS) market.

Post-trade transparency refers to a regulatory system that mandates public disclosure of price and volume information of each relevant transaction.

The report studied relevant works of international bodies and academic literature and an examination of publicly available transaction-level post-trade data about CDS transactions. IOSCO also surveyed market participants and observers on their use of publicly available post-trade data and its perceived impact on the market and considered comments received on a consultation version of the report.

The report concludes that greater post-trade transparency in the CDS market would be valuable to market participants and other market observers. IOSCO encourages each member jurisdiction to take steps toward enhancing post-trade transparency in their CDS market.

IOSCO believes that improving transparency in the CDS market will increase the efficacy of the G20 commitments to reform the over-the-counter (OTC) derivatives markets.