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.