European Parliament On 19 March 2012, the European Commission published a green paper on the approach it should take towards the regulation of shadow banking entities and activities. The consultation concentrates on: i) the definition of shadow banking; ii) the risks and benefits relating to shadow banking; iii) challenges posed by shadow banking for supervisors and regulators; and iv) existing EU regulatory measures relating to shadow banking.

View study here. Release Date: 03/20/2012 Cross-Reference Dodd-Frank § 1061

View study here. Release Date: 03/15/2012 Cross References: Dodd-Frank § 153

On March 15, 2012, the SEC released a memorandum regarding their analysis of single-name credit default swap transaction and position activity. The first analysis is based on a sample of all new, risk transfer, dollar-adjusted, gold record transactions in both corporate and sovereign single-name credit default swaps (CDS) submitted to the Depository Trust and Clearing Corporation’s Trade Information Warehouse (DTCC-TIW) between January 1, 2011 and December 31, 2011. The second analysis is based on monthly position data in single-name CDS over the same sample period and provided by DTCC-TIW.

British and Irish Legal Information Institute 15 March 2012 The Commercial Court has provided guidance on the scope of the duties owed by a clearing broker to an investment fund, in circumstances where the broker has exercised its right to conduct a forced close out. The Court concluded that the clearing broker is only obliged to act rationally and in good faith. Furthermore, the clearing broker has a very broad discretion to take appropriate action in order to effect the close out.