The International Organization of Securities Commissions (IOSCO) technical committee published Unregulated Financial Markets and Products Consultation Report that was prepared by its task force on unregulated financial markets and products.
The report has interim recommendations for regulatory action aimed at improving confidence in the securitization process and the market for CDS.
The interim recommendations contained in the report address issues of immediate concern with respect to securitized products, including ABS, ABCP and structured credit products such as CDOs, synthetic CDOs, and CLOs; and CDS.
The IOSCO said it plans to further consider which additional standards are necessary for the purpose of consistent implementation by national regulators of final recommendations
Fitch appoints new head of Asia Pacific structured finance
The Task Force has focused on these particular areas of unregulated financial markets and products due to the significance of securitization and CDS to credit availability in the real economy, their contribution to the management of individual and systemic risks, their recent rapid growth and the important role they play in global markets," said Kathleen Casey, chairman of IOSCOs technical committee. In proposing these interim recommendations IOSCO believes that a measured regulatory response is required, taking into account industry initiatives, to strengthen the operation of the securitization and CDS markets. IOSCO further believes that implementing these regulatory actions may assist in restoring confidence in, and promoting the fairness, efficiency and orderliness of, international financial markets."