Basel Committee and IOSCO finalise securitisation principles: The Basel Committee and IOSCO have published the final version of their report on defining simple, transparent and comparable securitisations. These criteria apply only to term securitisations and are non-exhaustive and non-binding. The criteria cover:
- simplicity with reference to the homogeneity of underlying assets with simple characteristics, and a transaction structure that is not overly complex;
- transparency where investors have sufficient information on the underlying assets, the structure of the transaction and the parties involved in the transaction, to give them a more thorough understanding of the risks involved; and
- comparability that will help investors in their understanding of these investments and enable more straightforward comparison between securitisation products within an asset class.
FX working group starts work on code of conduct and principles: BIS has now established its foreign exchange working group (FXWG) and it has held its first meeting. It will take forward two workstreams:
- drafting the new single global code by harmonising common elements of the existing FX codes as well as drafting new principles for those areas not adequately covered in existing codes; and
- developing proposals to promote and incentivise adherence to the new single global code.
It plans to finalise the work by May 2017. (Source: FX Working Group Starts Work on Code of Conduct and Principles)