Newsletter Apr 2007: EU urged to try oversight option for commodities

Europe’s commodities industry makes a powerful case against the imposition of capital charges, but victory is not assured By David KeefeEurope’s regulators should resolve the thorny question of how best to assess the solvency of specialist commodity firms in a single European Union financial services market by using their considerable oversight powers, rather than by imposing so-called pillar 1 minimum capital charges on the firms, an industry task force plans to argue in a forthcoming paper.