IOSCO published the work program for 2020. The work program calls for IOSCO to continue its efforts on the five priorities for 2019 while undertaking work on a new priority concerning the rising levels of corporate debt and leveraged loans and the potential resulting risks in capital markets. The priorities from 2019 that will continue to be priorities in 2020 constitute work that relates to crypto-assets, artificial intelligence and machine learning, market fragmentation, passive investing and index providers, and retail distribution and digitalization. The work program elaborates on the timelines of the key deliverables in these areas.
For corporate debt and leveraged finance, IOSCO will focus its attention on the risks created by the current origination practices, the chains of intermediation in the corporate debt market, and the associated conflicts of interest. To this end, IOSCO will publish a report on conduct-related issues in the leveraged loans and collateralized loan obligation markets. Other important workstreams include those related to asset management, particularly in the areas of liquidity risk management and leverage. Additionally, IOSCO will maintain its focus on systemic risk in capital markets across its different workstreams and continue to collaborate and engage effectively on this topic with FSB and the other standard-setting bodies. IOSCO will further its efforts in fintech and sustainable finance, including through the Sustainable Finance Network and the Fintech Network, and will pursue matters of special importance to growth and emerging markets. The work program also refers to other important workstreams that are being carried out by the eight Policy Committees of IOSCO.
Keywords: International, Securities, Work Program, Crypto Assets, Market Fragmentation, Corporate Debt, Leveraged Lending, Regtech, Fintech, IOSCO
Previous ArticleFSI Survey Examines Policy Responses to Fintech Developments
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.
FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.