FMLC writes to FSB on benchmark reform: FMLC has written to the Financial Standards Board (FSB) on regulation of commodity benchmarks. In the letter FMLC outlined the current state of benchmark regulation in the UK, EU and internationally. The letter also looks to future developments in benchmark regulation and cautions against unilateral national or regional action as this can lead to inconsistencies, gaps, overlaps, duplicative requirements and other legal uncertainties. FMLC suggests that FSB start an overarching international enquiry to identify appropriate objectives for reform initiatives to promote inter-jurisdictional cohesion and legal certainty. The letter suggests that FSB might adopt the same approach that it took to its previous study on "IBOR" benchmarks. (Source: FMLC Letter to FSB on the Regulation of Commodity Benchmarks)

FMLC writes to Treasury on FCARs: FMLC has written to Treasury on the meaning of "possession", "control" and "excess financial collateral" under the Financial Collateral Arrangements (No. 2) Regulations 2003 (FCARs). The letter attaches evidence FMLC has gathered to show the impact that uncertainty over the definitions is having in the UK financial markets. The letter follows an FMLC paper in 2012 and subsequent discussions with Treasury. FMLC says the evidence in the letter shows the cumulative effect of the uncertainty on the different parts of the UK financial markets. It also says imminent changes driven by EU law will add to the concerns, as they will result in an increased use of security financial collateral arrangements (SFCA), thereby exacerbating the issues of legal uncertainty. FMLC urges Treasury to address these issues of legal uncertainty as set out in its original 2012 paper on the topic. (Source: Letter From FMLC to Treasury on the Meaning of "Possession", "Control" and "Excess Financial Collateral" Under the Financial Collateral Arrangements (No. 2) Regulations 2003)