Several respondents to Treasury Secretary Henry Paulson’s call for comments supported the SEC’s recent overtures towards letting non-SEC-registered foreign firms and exchanges participate in U.S. markets, and supported expanding that to include recognizing non-U.S. regulators as equivalent to the SEC, much as the CFTC already does.
Charlie McCreevy, European commissioner for the Internal Market and Services, has also been airing his views on the subject:
“In Europe, we are already used to such a system – it is basically the MiFID approach,” he said in a November speech, referring to the Markets in Financial Instruments Directive, which outlines a detailed approach to coordinated regulation across 27 EU jurisdictions, as has been covered extensively in these pages. The occasion was a conference on Eastern European financial markets sponsored by the Austrian Financial Markets Authority and the Vienna Stock Exchange.
“In the U.S., the CFTC also adopts this approach for derivatives markets, which have limited retail exposure,” he added. “But no one should underestimate how big a change this is for the SEC, and how many political difficulties there might be if things go wrong.”
He then delivered five principles that would ensure the process doesn’t go wrong (below).