The Basel Committee has opened consultations on derivatives-related reforms to capital adequacy. The first seeks to improve the non-internal model method for capitalising counterparty credit risk exposures. It differentiates between margined and unmargined trades, reflects the possibility of greater volatility and better recognises the benefits of netting. The second sets out the final proposals for the capital treatment of bank exposures to central counterparties (CCPs), addressing concerns that the interim proposals would discourage central clearing and the maintenance of generous CCP default funds. Both consultations are open until 27 September. (Source: The Non-Internal Model Method for Capitalising Counterparty Credit Risk Exposures and Capital Treatment of Bank Exposures to CCPs)