March 21, 2011 A proposal by the U.S. futures regulator to force clearinghouses to accept more members could inadvertently increase risk in the financial system, the body's British counterpart said on Monday. The CFTC proposed in December a measure that would prohibit clearinghouses from setting a minimum capital requirement above $50 million on those interested in becoming a member to clear swaps. In a rare comment letter to the CFTC, Britain's Financial Services Authority said those requirements may increase access, but "to impose them on clearing arrangements for products that have complex

Council of the European Union March 17, 2011 Suggested amendments have been made to the Proposal for a Regulation of the European Parliament and of the Council on derivative transactions, central counterparties and trade repositories. These will be discussed at the meeting of the Working Party of Financial Services AttachÉs on 21 March. Following that meeting, the Presidency intends to further amend the compromise text with a view to the meeting of 28 March.

Comment Letter RIN 3038-AC98 March 21, 2011 MFA submitted a comment letter to the CFTC on its proposed rules on "Risk Management Requirements for Derivatives Clearing Organizations," With respect to the proposed Core Principle C rules, MFA supported the CFTC's mandate that DCO participation requirements be objective, risk-based, publicly disclosed and permit fair and open access. MFA requested that the CFTC require DCOs to provide highly standardized mechanisms for establishing connectivity with SEFs and any other permitted trading venues and mandate that the DCO keep the clearing acceptance

Bank for International Settlements March 17, 2011 The Basel Committee on Banking Supervision (BCBS) and the Committee on Payment and Settlement Systems (CPSS) are establishing a joint working group to revise the BCBS's Supervisory guidance for managing settlement risk in foreign exchange transactions, with the goal of ensuring that financial institutions adequately control their foreign exchange settlement exposures. The announcement indicates the re-launch of the planned work between central banks and supervisors, which had been postponed with the onset of the financial crisis. This is an

March 18, 2011 In June 2010 CESR issued Guidance on the Registration Process and related issues, as required by article 21.2 of the EU Regulation on credit rating agencies. CESR's Guidance also dealt with the endorsement regime established to allow the distribution and the use for regulatory purposes of credit ratings issued in third countries. After the discussion by the EU Parliament and the Council on the revised Regulation on Credit Rating Agencies (CRAs), this new Regulation was agreed in December 2010 and will be published in the following weeks. The Consultation Paper presents ESMA's