Oil market pricing escapes linkage to financial benchmark regulations

Tue Sep 9, 2014 12:27pm EDT
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* Price reporting agencies progress implementing IOSCO principles

* Reduced banks' participation in commodities noted

* Argus welcomes IOSCO's report

* IOSCO cites risks to quantity of price data agencies get

By Alex Lawler

LONDON, Sept 9 (Reuters) - The oil market's price setting agencies have avoided being linked to the kind of regulation trained on financial benchmarks, in a report by international regulators.

The decision by the International Organization of Securities Commissions (IOSCO) comes as the European Union is investigating allegations of oil price manipulation, which has involved searching the offices of major oil companies and pricing agencies.

In its report on Tuesday, IOSCO said it had no plan to further align guidelines for oil price reporting agencies (PRAs) with those for financial market benchmarks. The PRAs had made good progress in implementing its Principles for Oil Price Reporting Agencies, which it published two years ago, it said.

IOSCO's initiative followed a request in 2011 from the Group of 20 (G20) top economies, under pressure to curb speculation blamed for huge swings in the oil market, to look at the role of price reporting agencies.   Continued...