SIFMA Pledges Support for EU Leaders’ Call For Greater Transparency

p class=MsoNormal>The Securities Industry and Financial Markets Association (SIFMA) this morning issued the following statement in response to the joint communiqué issued last night following EU leaders’ mini-summit on recent financial turbulence. The communiqué was made by Gordon Brown and the French President Nicolas Sarkozy, German Chancellor Angela Merkel, Italy's premier Romano Prodi and EU Commission President Jose Manuel Barroso. It called for greater transparency and the need for a “better” early warning system.

"SIFMA supports the EU leaders' call for prompt, targetted and proportionate action in addressing the tumult in the market," said Betrand Huet, SIFMA’s managing director, legal and regulatory affairs. The structured products industry is actively working on developing further transparency and believes it to be essential for governments to take account of these initiatives if they are to provide an adequate response to the crisis. SIFMA and other industry stakeholders are committed to take the necessary steps that will contribute to restoring confidence and liquidity in the markets.

Karsten Moller, managing director, head of Europe and Asia at SIFMA, added, "We recognise and applaud the leaders' attempt to be even-handed in resolving the crisis and bringing stability to the market, without recourse to rushed legislative action. There must also be recognition of the global nature of the markets and the ensuing crisis cannot be addressed in a piecemeal approach. SIFMA is dedicated to working with a number of national and international associations and regulatory agencies on the transparency initiative and to put into place workable and practical solutions."