The International Organization of Securities Commissions’ (IOSCO) Technical Committee has published a Final Report on Unregulated Financial Markets and Products.

The Final Report recommends regulatory actions to assist financial market regulators in introducing greater transparency and oversight with respect to securitisation and credit default swaps (CDS) markets, and improving investor confidence, and the quality of these markets.

Kathleen Casey, Chairman of IOSCO’s Technical Committee, said:

"The recommendations contained in this Final Report are aimed at restoring investor confidence and at improving the functioning, integrity and oversight of unregulated financial market segments and products, such as securitisation and credit default swaps, and international financial markets generally.

The overall objective of the Task Force was to recommend ways to redefine the perimeter of regulation in certain OTC markets. As our recommendations go beyond the traditional remits of regulators, further work is required and is being undertaken by IOSCO to identify the appropriate criteria to be used in redefining the border between what has traditionally been considered regulated and unregulated markets. Meanwhile, each jurisdiction should assess the scope of their existing regulatory regimes and decide how the recommendations should be applied to their own specific circumstances."

View IOSCO Final Report - Unregulated Financial Markets and Products, 4 September 2009