Thursday, November 20, 2008

SEC Chair Will Convene Meeting of International Securities Regulators

With many commenters noting that this is an international financial crisis needing an international regulatory response, SEC Chairman Christopher Cox said that he will convene a meeting of the International Organization of Securities Commissions (IOSCO) Technical Committee on Monday, November 24 by teleconference to discuss urgent regulatory issues in the ongoing credit crisis.

In addressing turbulent market conditions, said the chair, it is essential not only that regulators act against securities law violations, including abusive short selling, but also that there be close coordination among international markets to avoid regulatory gaps and unintended consequences. This high-level coordination among international regulators will allow for a review of the steps taken thus far and ensure that ongoing and future actions are effective and mutually reinforcing.

The Technical Committee meeting will consider, in addition to short selling, OTC derivatives, international accounting standards, regulation of credit rating agencies, and other issues. It is becoming clear that any regulatory and legislative reform of the financial crisis must and will have an international component. Indeed, one of the key guiding principles enunciated by the President-elect is that international regulatory cooperation and harm0nization is crucial to the effective reform of the financial markets, and that includes the accounting and auditing standard setters, as well as the securities regulators.