The Financial Stability Forum (FSF) published today a report by Howard Davies, Chairman of the UK FSA and Chairman of an earlier FSF Working Group, on progress in implementing recommendations endorsed by the FSF last year to address concerns about Highly Leveraged Institutions (HLIs). The recommendations addressed the systemic risks raised by the near collapse of Long-Term Capital Management in the autumn of 1998, and the concerns triggered by the operations of HLIs in the financial markets of emerging market economies.

The progress report was discussed at a meeting of the FSF earlier this year. It draws on work carried out by various supervisory and private sector groupings, including a joint task force of the Basel Committee on Banking Supervision and IOSCO, a multidisciplinary working group on public disclosure sponsored by four international financial services regulatory organisations, a group of major market participants in the foreign exchange markets, and the Global Documentation Steering Committee.