SIFMA Welcomes Steps Towards EU/US Financial Markets Integration - But Political Will Must Be Turned Into Action

The Securities Industry and Financial Markets Association (SIFMA) today welcomed the Transatlantic Economic Council (TEC) statement on progress toward economic integration and regulatory convergence and continues to advocate for ongoing efforts to increase cross-border cooperation. SIFMA is also very supportive of the shared EU-US goal to promote higher standards of living by reducing barriers to international trade and investment.

“The TEC statement is a welcomed confirmation of strong EU-US political will to proceed with transatlantic securities market integration. We continue to urge the European Commission and the SEC to take tangible action in the coming months to update regulatory structures that suit the global nature of the financial marketplace,” said Bertrand Huet, managing director and SIFMA’s European Legal and Regulatory Counsel.

“We support the longer term goal of mutual recognition. However, there are immediate steps that both the US and the EC can take that would have a positive and immediate effect on international capital flows. For example, the TEC is encouraging action to relieve securities firms from local licensing requirements for engaging in cross-border business with sophisticated investors. As such, SIFMA is extremely disappointed to note that the SEC has been letting valuable time pass without proposing anticipated changes to the 19 year-old Securities Exchange Act Rule 15a-6. Reforming this rule would implement one of the TEC's stated commitments and would eliminate existing inefficiencies, increase investment opportunities, improve competition, without damaging investor protection,” said David Strongin, managing director of SIFMA.