Statement By SIFMA CEO Tim Ryan On Speech By Michel Barnier, EU Commissioner

The Securities Industry and Financial Markets Association (SIFMA) today released the following introductory remarks welcoming Michel Barnier, Commissioner for EU Internal Market and Services, to a speech before SIFMA members:


"Good Morning. I would like to welcome you all to SIFMA this morning for what should be an enlightening speech by our very special guest: Michel Barnier who currently serves as European Commissioner for Internal Market and Services. I’d also like to welcome members of his team from Europe. We are very pleased that you have made New York and SIFMA a stop on this important visit.

In the wake of the global financial crisis, governments around the world are grappling with creating new regulatory frameworks that will protect financial markets from the kind of crisis we experienced in 2008 and early 2009. The US and EU have moved quickly in shaping global reforms.

The United States has moved forward with its version of regulatory reform through the Dodd-Frank Act. Now, eyes turn toward Europe where the European Commission, led by Commissioner Barnier, will continue the EU’s reform process. As has been reported, Commissioner Barnier will unveil a host of legislative and regulatory changes that will move Europe closer to a single market. These changes include a “Single Market Act,” and new rules that will oversee hedge funds and private equity. As he begins his work on these and other efforts, it will be critical for regulators here in the United States, and in Europe to ensure rules are written in a coordinated fashion. So, we look forward to working with both the EU and US in minimizing conflicting and disparate approaches that could impair the transatlantic markets.

Without similar rules governing financial institutions that operate globally, we run the risk of regulatory arbitrage and ultimately a weaker global financial system. Issues such as oversight of the derivatives markets, resolution of failing financial institutions, rules addressing high-frequency trading, securitization and, of course, the new capital and liquidity standards set forth by the Basel Committee, will need to be addressed in a way that strengthens, not undermines, our markets.

A coordinated regulatory regime throughout the global financial system also ensures that no country or jurisdiction will seek a competitive advantage by failing to implement important reforms. We look forward to ongoing dialogue with the Commission in achieving this important goal.

Commissioner Barnier, I’d like to again welcome you here and we look forward to hearing from you on how the EU will be addressing these and other issues in the coming months."