LONDON, May 28 (Global Risk Regulator) – Fears that Europe’s banks face an unlevel playing field in accounting terms should recede with the issue today of proposals to bring international guidance on using controversial fair-value concepts into line with recent changes in the US, according to professional accounting sources.

BRUSSELS, May 27 (Global Risk Regulator) – Legislation embodying reforms aimed at improving supervision of cross-border financial markets and guarding against the build-up of risks to the financial system is expected to be published this autumn and be “up and running” next year, according to the European Commission.

Proposals for a macro/micro-prudential supervision framework face political test at June meetings. Commission wants autumn legislationBy Melvyn Westlake

Capital charges for holding re-securitisations are likely to triple, on some estimates. New rules could capture plain vanilla deals, too By Melvyn Westlake

Could commodity businesses get caught up in the sweeping regulatory changes underway in other financial sectors?

Although proposed changes to the European Commission’s prudential regulatory regime for banks have mostly followed closely those issued by the Basel Committee, the one notable exception concerns re-securitisations. Whereas the Basel Committee is proposing to raise the risk weights for products such CDOs constructed from asset-backed securities (ABS) or CDOs that comprise a package of other CDOs, the European Commission is suggesting that such products should be completely deducted from capital – an effective risk weight of 1,250%.

Key international standards setter launches consultation on regulatory arrangements for securitisations, credit derivatives

Brussels regulators under fire from industry, lawmakers and some governments over proposed ‘alternative investments’ law By Roger Aitken

Representatives of the US hedge fund industry are now prepared to back mandatory registration of investment advisers. The disclosure of this change of heart came on May 7 during hearings on the hedge fund industry held by the House financial services committee.

Stress tests to assess bank resilience could raise questions about another set of tests - the much-delayed Basel II trials By Nick Paraskeva