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An EU-U.S.mutual recognition arrangement for securities would have the potential tofacilitate access of EU and U.S. investors to a broader and deepertransatlantic market, increase the availability of information about foreigninvestment opportunities, promote greater diversification of securitiesportfolios, significantly reduce transatlantic trading and transaction costs,and increase oversight coordination among regulators, the SEC said in astatement.
The twocommissioners issued a joint statement that called for input “from marketparticipants.”
“The U.S.and EU, which comprise 70 percent of the world’s capital markets, have a commoninterest in developing a cooperative approach to reducing regulatory frictionand increasing investor access to investment diversification opportunities andenhancing investor protections. The concept of mutual recognition offerssignificant promise as a means of better protecting investors, fosteringcapital formation and maintaining fair, orderly, and efficient transatlanticsecurities markets. As we consider implementation of this concept, we encourageinput from market participants.”
CommissionerMcCreevy and Chairman Cox agreed to “work closely together” during the year toreview overall progress. In addition, SEC and European Commission officialsplan to hold regular technical meetings over the year to begin to develop a mutualrecognition framework.