FSA and SEC hold strategic talks on market surveillance

The Financial Services Authority (FSA) and the US Securities and Exchange Commission (SEC) held joint talks today on how to tighten cross-Atlantic regulation and enforcement.

FSA chief executive Hector Sants met with SEC chairman Mary L Schapiro as part of the SEC-FSA Strategic Dialogue sessions established in 2006.

The purpose of the dialogue is for the two agencies to engage at senior levels on current matters affecting the UK and US capital markets and areas of future collaboration.

Today's talks included discussion on regulatory reform, oversight of over-the-counter derivatives trading and clearing, market structure issues including high frequency trading, market surveillance and short selling.

The SEC and the FSA also used the meeting to restate their commitment to working together and to continue discussions in the areas of common regulatory interest, including cross-border enforcement cases and the global regulatory agenda, the FSA said.

FSA chief executive Hector Sants said: "Close cooperation between the FSA and the SEC is important as we seek to meet the G20 commitment to enhance transparency, mitigate systemic risk and protect against market abuse.

"The strategic dialogue is key to this and gives the two agencies the opportunity to find common ground, build on areas of mutual interest, and identify potential regulatory gaps."

SEC chairman Schapiro said the ongoing dialogue between the SEC and the UK FSA demonstrates both agencies' commitment to aligning interests with the goal of achieving regulatory consistency.

"As Europe and the US continue to enhance regulation in the wake of the financial crisis, working with all of our counterparts is essential to help prevent regulatory arbitrage, especially in the areas involving over-the-counter derivatives and market structure," she said.