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Securities Industry And Financial Markets Association Commends G-7 Push To Eliminate Regulatory Duplication, Foster Local Bond Market Development

Date 12/02/2007

The Securities Industry and Financial Markets Association (SIFMA) today issued the following statement applauding the Group of Seven for their position on global regulation of financial services and bond market development, which resulted from their talks at the G-7 Finance Ministers' meetings on February 10th in Essen, Germany.

Among the key developments, G-7 highlighted the importance of “mutual recognition of regulatory regimes.” SIFMA, which recently celebrated the overwhelming approval to consolidate the NYSE and NASD regulation to eliminate redundant regulation is delighted to see the G-7 pursuing the same agenda globally. "Since 2000, SIFMA has been a strong advocate for the elimination of duplicative regulation both domestically and abroad,” said SIFMA co-CEO, Marc Lackritz. “The G-7’s call for elimination of duplicative regulation and for mutual recognition of regulatory regimes is a strong step toward a global financial marketplace.”

The G-7 also emphasized the importance of the development of local bond markets. SIFMA strongly supports the G7 view that the "...role of local bond markets in fostering growth and financial stability" and the role such markets play to "...reduce emerging countries' vulnerability to external shocks and financial crises and to promote growth" is critical to the health of the global economy.

Liquid, efficient and functional bond markets aid overall economic development and job creation. By drawing new sources of capital to the credit markets, providing long-term financing for infrastructure, and enhancing the ability of the marketplace to better price credit and interest rate risk, the development of fixed-income markets provides multiple benefits to countries, issuers, investors, and intermediaries, " added Micah Green, co-CEO of SIFMA.

SIFMA stands ready to provide technical assistance to G-7 efforts, as appropriate.