* UK regulator satisfied after conducting stress test

* Barclays faces Tuesday deadline on UK asset insurance

* iShares sale expected early next week, mulls bond buybacks

* Shares rally over 17 percent

(Adds confirmation, details, Commerzbank, updates shares)

By Steve Slater

LONDON, March 27 (Reuters) - Barclays Plc (BARC.L: Quote, Profile, Research) said it does not need to raise any fresh capital after Britain's financial regulator subjected it to "a detailed stress test" and was satisfied the bank's balance sheet can withstand more pain.

Barclays shares extended an early rally and soared over 17 percent after its brief statement soothed fears it could need funds or have to hand the government a stake.

The bank said on Friday its capital position and resources, after exposure to the stress tests, "are expected to continue to meet the capital requirements" that the Financial Services Authority (FSA) published in January.