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Market participants need to move ahead urgently to put in place central counterparty clearing for OTC credit derivatives and achieve more robust operational processes in OTC derivatives markets, FSF recommends. Accounting standards setters must conclude their work promptly to enhance and converge guidance on valuation of instruments in inactive markets, and accounting and disclosure standards for off-balance sheet activities and related risks, the Forum continues.
In addition, the FSF calls on CRAs to enhance their efforts to comply with the FSF recommendations, and private sector organisations that have recommended improvements to industry practices to establish frameworks for rigorously monitoring and reporting on their timely implementation.
The FSF will monitor and address the international interaction and consistency of emergency arrangements and responses being put in place to address the current financial crisis. It also announced to continue working to mitigate sources of pro-cyclicality in the financial system and to reassess the scope of financial regulation. Finally, it will work to better integrate macro-economic oversight and prudential supervision, it states.
The follow-up report reviews the implementation of the recommendations in five areas:
FSF follow-up report
FSF report April