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

CFTC Speeches March 22, 2011 Chairman Gary Gensler speaking in Brussels discusses Dodd-Frank and reiterates one of his favorite themes-the role that swaps allegedly playing in the financial meltdown of 2008. "Though there were many causes to the crisis in 2008, it is clear that swaps played a central role. They added leverage to the financial system with more risk being backed up by less capital. U.S. taxpayers bailed out AIG with $180 billion when that company's ineffectively regulated $2 trillion swaps portfolio, managed from London and cancerously interconnected to other financial

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

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.

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