SEC, CFTC, FCA link up shows cross-border harmonisation is critical as ever

Author: John Crabb | Published: 25 Jun 2019

Successfully synchronising the regulations that govern the world's largest financial markets remains as critical as ever in today's globalised world, according to several sources close to IFLR.

The announcement this week by the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the Financial Conduct Authority regarding a planned collaboration in the credit derivatives market shows that some of the world's biggest markets are still looking to align themselves in the name of stability, transparency and integrity.

Areas of significant importance to financial stability like the swaps and derivatives markets, securitisation, as well as banking and finance, all require harmonisation in order to be strong and secure marketplaces.

There are other ongoing attempts to coordinate certain markets. The CFTC, for example, last year released white papers for the cross-border application of swaps provisions, which outlines a risk-based approach with deference comparable to non-US regulation.

See also: CFTC...