The Basel Committee issued today a consultative paper on the capitalization of bank exposures to central counterparties. The Committee's proposals relate to the capitalization of bank exposures to a central counterparty and, in particular, those related to the capitalization of default fund exposures. The consultative paper seeks comments from banks, central counterparties and other stakeholders on the proposed Basel III reforms reflected in the proposed regulatory capital adequacy rules text by February 4, 2011. Date December 22, 2010

Following the adoption of a directive to amend the Settlement Finality and Financial Collateral Arrangements Directives by the European Parliament and Council on May 6, 2009, Member States are required to adopt and publish legislative changes to their national laws by December 30, 2010. In the United Kingdom, HM Treasury issued a consultation paper on its proposed legislative changes in August 2010 and received a number of responses, a summary of which has now been published along with a revised legislative proposal which will be set out to Parliament. Date December 22, 2010

The Financial Services Authority ("FSA") and HM Treasury ("HMT") have published a joint consultation paper setting out proposals for the implementation of the revised UCITS IV Directive. The UCITS IV Directive modernises the regulatory framework and procedures for selling retail investment funds cross-border in Europe. It must be implemented into national law by all EU member States by July 1, 2011. UCITS IV introduces the following changes: a UCITS management company will be allowed to operate a UCITS fund authorised in a different EU Member State, without the need to be established in the

A revised proposal by the Commodity Futures Trading Commission for how private swaps can be traded will prevent dealers from losing billions of dollars in revenue, according to Moody's Investors Service analyst Alexander Yavorsky. The commission rewrote a prior attempt at the rule last week after Chairman Gary Gensler pulled the proposal from consideration at a Dec. 9 meeting. The original rule would have required dealers to provide executable prices to all market users of credit-default, interestrate and other swaps prior to any trade being done on an electronic system that mimics how futures

New U.S. rules to limit speculation in commodity markets could move forward quickly, and with few alterations, after objections by the measure's most vocal supporter unexpectedly delayed a key vote. CFTC Chairman Gary Gensler, abruptly postponed a vote on Thursday to open proposed new position limits to public comment, evidence of mounting pressures internally as the agency implements dozens of rules meant to make markets safer and more transparent. Gensler has managed to maneuver around the two Republican commissioners who have several times voted against releasing new rules, concerned they