On August 30, the Fed, FDIC, and the OCC issued a final rule amending their respective market risk capital rules, which generally apply to banking organizations that engage in substantial trading activity.  The final rule improves sensitivity to risks under the current regulatory measurement methodologies, including default and migration risks associated with illiquid products.  The agencies anticipate that the final rule will significantly increase the risk-based capital allocated to market risk.  The final rule will be effective on January 1, 2013.  OCC Release.  Final Rule.