Financial Regulatory Forum

SEC, CFTC to release harmonization report on Oct 15

By Reuters Staff
September 30, 2009

Gary Gensler (R), chairman of the Commodity Futures Trading Commission, and Mary Schapiro, chairman of the Securities and Exchange Commission, testify before the House Financial services committee during a hearing on Capitol Hill in Washington July 22, 2009 (file photo). REUTERS/Yuri Gripas (UNITED STATES POLITICS BUSINESS) By Christopher Doering
WASHINGTON, Sept 30 (Reuters) – The two main U.S.
regulators policing the securities and futures markets said on
Wednesday they will issue on Oct. 15 a report outlining where
their regulatory frameworks differ and ways to bridge those
gaps.

The U.S. Securities and Exchange and the U.S. Commodity
Futures Trading Commission said in a joint statement they will
recommend to Congress and the White House steps to strengthen
enforcement powers, investor protection and an ongoing
coordination process.

“We must continue to build upon the progress we are making
to reduce regulatory arbitrage, avoid unnecessary duplication
and close regulatory gaps,” said SEC Chairman Mary Schapiro.
“We are fully committed to continuing on the path toward
reform.”

In addition, the report also will discuss risk-based
portfolio margining, insider trading rules, product listing,
and customer protection standards for advisors and
broker-dealers.

Earlier this month, the SEC and CFTC held historic joint
meetings to resolve long-standing regulatory differences
between the two agencies.

As part of a broader vision to reshape the battered U.S.
financial regulatory system, the Obama administration gave the
two agencies a Sept. 30 deadline to identify conflicting laws,
regulations and philosophies for financial instruments.

The administration urged the agencies to agree upon a
common foundation for regulation that is precise enough to
identify market practices that violate those rules and can be
subject to enforcement by regulators.

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