IOSCO has published a consultation report on unregulated products and markets. It includes interim recommendations for regulatory action that should improve confidence in the securitisation process and the market for CDS. The recommendations address:

  • securitisation: wrong incentives;
  • securitisation: inadequate risk management practices;
  • securitisation: regulatory structure and oversight issues;
  • CDS: counterparty risk and lack of transparency; and
  • CDS: regulatory structure and oversight issues.

IOSCO asks for comment by 15 June.