Global securities regulators held a meeting earlier this week to discuss issues surrounding the need to both, revive the securitization market, and enhance oversight of the shadow banking world.

The International Organization of Securities Commissions (IOSCO) held a roundtable discussion at its headquarters in Madrid on Monday, July 2, to examine on issues arising from its work on securitization. The meeting focused on IOSCO’s recently published report on global developments in securitization regulation, which is open for public comment until August 6.

The report, which was drafted by IOSCO’s Task Force on Unregulated Markets and Products, at the request of the Financial Stability Board (FSB), details recommendations for issues such as risk retention, improving transparency, and the standardization of product disclosure.

Its recommendations include, monitoring the industry experience with differing approaches to risk retention in the United States and Europe; consulting with investors about their appetite for stress testing information, and, possibly providing guidance on the disclosure issuers should be expected to make about stress testing; and, encouraging the industry to develop best practices to ensure consistent and harmonized approaches to disclosure.

It also highlights the importance of securitization as a market-based source of finance and the role cross-border issuance plays in deepening markets and supporting growth in the real economy.

IOSCO reports that these issues were all also discussed by participants at the roundtable, which included representatives from its task force, and the securitization industry, including issuers and investors, interest groups, lawyers and auditing firms.