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

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

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 CFTC announced the appointment of Dr. Andrei Kirilenko as the CFTC's Chief Economist. Dr. Kirilenko has been with the CFTC since 2008. He received his Ph.D. in Economics from the University of Pennsylvania, where he specialized in Finance. His research has focused on the informational properties and the microstructure of financial markets. Prior to joining the CFTC, he spent 12 years at the IMF working on global capital markets issues. Most recently, Dr. Kirilenko has been working on issues related to algorithmic and high frequency trading and played a key role in the review of the unusual

The CFTC has promoted Andrei Kirilenko, an economist known for his role in the review of the May 6 "flash crash," as chief economist for the agency. Kirilenko, who has worked on research into how high-frequency and algorithmic trading affects markets, has been highly sought after by commissioners seeking opinions on how to use new authority to rein in computer-driven trading, and how to try to prevent another flash crash. Kirilenko joined the CFTC in 2008 after 12 years at the International Monetary Fund, where he worked on global capital markets issues. He has a PhD in economics from the