Global forum eyes securitised-product disclosure-paper

TOKYO, Feb 6 (Reuters) - A global forum of financial watchdogs will call for greater disclosure on securitised products when Group of Seven finance officials meet on Saturday in Tokyo, Japan's Nikkei daily reported.

The Financial Stability Forum, a group of central bankers and regulators from 12 industrialised nations, will present the G7 officials with an interim report on the causes of the global market turmoil and ways to prevent such problems in future.

The FSF is expected to issue a final report in April.

Financial leaders from the United States, Canada, Japan, Britain, Germany, France and Italy will be in Tokyo to exchange views on the global economy in the wake of the U.S. subprime problems.

The Japanese daily reported that the forum will call for financial institutions to disclose more information on the market value of securitised products to ease concerns in the market.

It will also recommend that these institutions build up enough convertible assets to prepare for liquidity risks and that authorities tighten controls on risk assets, the Nikkei said.

It cited the forum's report of proposals as saying the financial system is fragile while uncertainty remains over the size of losses related to securitised products.

Subprime mortgages were the driving force behind a boom in structured finance as banks bundled risky U.S. mortgage assets into complex instruments and sold them to investors worldwide.

The meltdown has forced financial institutions to write down more than $100 billion due to their exposure to subprime mortgages.