Alert May 26, 2009

IOSCO Publishes Consultation Report on Unregulated Financial Products

The Task Force on Unregulated Financial Markets and Products for the International Organization of Securities Commissions (“IOSCO”) published a report (the “Report”) for public comment that includes interim recommendations designed to introduce greater transparency and oversight in unregulated financial markets and products in order to improve investor confidence in, and the quality of, these markets.  The interim recommendations address (a) securitized products, including asset-backed securities (ABS), asset-backed commercial paper (ABCP) and structured credit products such as collateralized debt obligations (CDOs), synthetic CDOs, and collateralized loan obligations (CLOs), and (b) credit default swaps (CDSs).  The Report makes recommendations about regulatory approaches to the securitized product and credit default swap markets and also discusses the broader unregulated financial markets and related products.  Comments must be received no later than June 15, 2009.  The Report is available at http://www.iosco.org/library/pubdocs/pdf/IOSCOPD290.pdf.