For the purpose of calculating capital requirements for specific risk associated with traded debt and equity positions, the competent authorities shall recognise the use of an institution’s internal model if, in addition to compliance with the conditions in the remainder of this Annex, the internal model meets the following conditions:

The competent authorities may allow the capital requirement for an exchange‐traded future to be equal to the margin required by the exchange if they are fully satisfied that it provides an accurate measure of the risk associated with the future and that it is at least equal to the capital requirement for a future that would result from a calculation made using the method set out in this Annex or applying the internal models method described in Annex V. The competent authorities may also allow the capital requirement for an OTC derivatives contract of the type referred to in this point cleared by a clearing house rec ...[+++]ognised by them to be equal to the margin required by the clearing house if they are fully satisfied that it provides an accurate measure of the risk associated with the derivatives contract and that it is at least equal to the capital requirement for the contract in question that would result from a calculation made using the method set out in the this Annex or applying the internal models method described in Annex V.

11. With respect to the creation of the position of ethics officer, two basic models present themselves: an in-house, non-statutory model as in the British House of Commons, and the statutory model proposed in the Government’s draft bill.

As Canada has adopted model war crimes and crimes against humanity legislation, underpinned by the principle of universal jurisdiction, and has now introduce comprehensive anti-terrorism domestic legislation with rights protecting checks and balances, including charter protection, legislative oversight and judicial review, Canada is once again well placed to serve as an international model for this genre of comprehensive domestic anti-terrorism legislation consistent with rights based concerns.

Are we involved in an international Wild West model, or are we able to learn from this experience and challenge, by the points that Senator Grafstein has raised, and that we must tie together with the law, which may be dragging a little behind, the regional organizations that are playing critical roles in international order?

The question is then whether we move to an international governance model, standard global regulations, or if we move to a national regulation model with monitoring by international groups like the G20 and the Financial Stability Forum.