Work underway by the International Organization of Securities Commissions (IOSCO) to issue similar guidance regarding securities firms’ relationships with hedge funds 1  BIS Review 37/1999  is another important step. Although not directly focused on the issue of hedge funds, international efforts to enhance public disclosure of financial institution risk profiles may also provide meaningful input.
In this context, the recent consultative paper “Recommendations for Public Disclosure of Trading and Derivatives Activities of Banks and Securities Firms,” issued jointly last month by the Basle Committee on Banking Supervision and IOSCO, makes an important contribution to the discussion of possible public policy responses.