The decision of the European Commission on the equivalence of the legal and supervisory framework of Canada to that of the European Union with regards to credit-rating agencies has been published in the Official Journal of the European Union. The decision will become effective on the twentieth day following such publication - in this instance, November 1, 2012. View decision in full here (links externally to Official Journal of the European Union).

CFTC Division of Clearing and Risk staff issued an interpretation providing clarification that CFTC Rule 22.2(d) does not prohibit a customer from granting a lien on the account at the FCM, nor does it prohibit the FCM from allowing or facilitating the lien. Cross-Reference(s): CFTC Rule 22.2(d) [Futures Commission Merchants: Treatment of Cleared Swaps and Associated Cleared Swaps Customer Collateral]. Lofchie Comment: The interpretation is very significant as it will allow the cross-margining, at least for risk purposes, of cleared swap accounts with other accounts at the same or affiliated

Much anticipated approach documents have been published on the operation of the Prudential Regulatory Authority and the Financial Conduct Authority, two of the UK’s new financial regulators scheduled to take full effect in early 2013. In regards to the Financial Conduct Authority, which will be charged with oversight of conduct of business issues for all FSA-authorised firms, the FSA has outlined a number of changes in its current approach to conduct of business in its approach document. For example, the new authority will devote greater resources to analysing risks and cross-industry issues

The European Banking Authority has reported on its findings from a follow-up assessment of banks’ disclosures made in response to the Pillar 3 requirements set out in the Capital Requirements Directive. The report indicates areas where banks have improved their disclosures and other areas where further impvoement is needed. The EBA singles out disclosures by specific banks in various areas that it considers to represent "best practices." Following this report, the EBA intends to implement a strategy for enhanced transparency, and aims to continue to identify best practices for public

CFTC Commissioner Bart Chilton delivered a brief speech in which he discussed the continuing need to protect the markets and to re-think how penalties are assessed. In particular, he advocates for registration with the CFTC of high speed traders and that "bad conduct" in algorithmic trading should be fined on a "per second" basis. View "Welcome to the Marchine" statement here (links externally to CFTC website).