The development and application of new technology is arguably causing the most rapid changes in financial markets. High-Frequency Trading ("HFT") and algorithmic trading ("AT") have particularly attracted controversy relating to their possible benefits and risks. The International Foresight Project was commissioned to address two critical challenges: (i) how rapid technological developments, coupled with the ever-increasing complexity of financial trading and markets, affect HFT/AT on financial markets; and (ii) the lack of evidence and analysis to inform the development of new regulations

The Enhanced Disclosure Task Force, which was established at the initiative of the Financial Stability Board, has published a report on its recommendations on ways in which large international banks can enhance their risk disclosure practices. The report identifies seven fundamental principles for enhancing risk disclosures, including (i) comparability among banks, (ii) consistency over time and (iii) clear, balanced and understandable communications. Lofchie Comment: In large part, this report is directed at regulators in the various relevant jurisdictions, as material implementation of the

CFTC Chairman Gary Gensler delivered a speech before the Ontario Securities Commission ("OSC") in Toronto, Canada in which he discussed the progress of major market jurisdictions on the coordinated approach to legislation and implementation of reforms. According to Chairman Gensler, as of October 12, swaps market reform focused on three areas: clearing requirement, transparency initiatives and swap dealer registration. Chairman Gensler noted that, although Canadian dollar interest rate swaps were not included in the clearing of standardized swaps in July, the CFTC will consider (in

The Financial Services Authority is consulting on changes to its fee structure, primarily to prepare for the first period of operation of the new Prudential Regulation Authority ("PRA") and the Financial Conduct Authority ("FCA"). Among other issues, the consultation considers: the introduction of separate fee blocks for PRA and FCA firms; the basis for PRA/FCA minimum fees; and revisions to discounts for European Economic Area firms with branches in the UK. Comments on the consultation should be submitted by January 7, 2013.

Comptroller of the Currency, Thomas J. Curry, gave the attached speech before the Risk Management Association's Annual Risk Management Conference. In his remarks, Curry cited a recent OCC report, the first Semiannual Risk Perspective report, which was intended to provide insights into the risks that the OCC is most concerned about. (A second Semiannual Risk Perspective report is due out later this year.) The following three broad areas of concern were laid out: the earnings challenges which many institutions face in an environment of slow growth and volatile financial markets; mortgage lending