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. 

(Source: Basel Committee and IOSCO Finalise Securitisation Principles)

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)