The Committee of European Banking Supervisors (CEBS) today publishes an assessment of the prudential risks arising from the conduct of commodities business and the activities of firms carrying out commodities business.
The report responds to the second part of a Call for Advice (CfA No. 6
) issued by the European Commission in August 2006 and concludes CEBS technical advice on the Review of commodities business under Article 48 of Directive 2006/49/EC.
The report is based on information provided by CEBS members and observers on the structure and regulatory coverage of their commodities markets as well as on information directly provided by market participants on their business, their risk structure and mitigants, their perception of the current regulatory framework and their concerns regarding any amendments to this framework.
The recommendations are the second part of CEBS's advice. The first part was published in January 2007