In a video conference at the Australian Securities and Investment Commission annual forum, SEC Chairman Elisse Walter sought for tighter controls that would rely on foreign regulatory authorities for cross border trades. There is a need to find common ground in the application of rules for over the counter derivatives trades.
She added, "In my view, that happy medium has its foundation in an approach that recognizes comparable foreign regulation to the maximum extent possible, consistent with domestic policy goals." She envisions that with the new rules, US rules would only apply in cases of absence of existing regulations on specific cases.
She further said that approach would allow a market participant to comply with domestic requirements in a specific market, such as capital or risk management through compliance with foreign regulations.
She added, "At the same time, the domestic regulator would continue to have the ability to apply certain key policy requirements of local law when foreign law does not impose comparable requirements."
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