Marc Lackritz, the co-CEO of the New York-based Securities Industry and Financial Markets Association (SIFMA), told a London conference on Thursday that regulators everywhere, but UK and US regulators in particular, need to adjust their regulatory approaches to take account of the reality of transatlantic capital flows.
“We face a unique challenge in a world that encompasses both geographically bounded regulators and unlimited global capital flows,” he said.
“As such, SIFMA is working to promote and facilitate broader and more efficient global capital markets – reducing barriers, increasing efficiency, and lowering the cost of capital.”
“Since the transatlantic financial services market is the major driver of the global market, reducing unnecessary and duplicative regulations there represents a major step forward in producing significant cost efficiencies for market participants and investors,” he added. “Regulatory convergence – a critically important pre-requisite to achieving improved international regulatory coherence – would enhance investor protection and market integrity, lower trading and investment costs for consumers and investors, increase business and regulatory efficiency, and expand customer choice.”
“Achieving convergence of regulatory standards will take vision, leadership, and a willingness to work for the good of all. This is the push-pull of global convergence: if regulators don’t take the lead, then the markets undoubtedly will,” he said, citing some the cross-border exchange deals currently being discussed.
Lackritz’s presentation can be viewed at: http://www.sia.com/international/pdf/londonCompliance2-1-07.pdf