In recent testimony before the Senate Committee on Banking, Housing, and Urban Affairs, SEC Commissioner Elisse Walter highlighted the importance of international cooperation in financial regulation.
Commissioner Walter highlighted the primary ways the SEC works with its international counterparts, particularly with respect to the implementation of rules required under Dodd-Frank:
- Multilateral organizations. Commissioner Walter stated that while the SEC is not a participant in the G20, the agency does coordinate with those entities that do participate in order to identify the SEC's concerns in the global capital markets. She also outlined the SEC's participation in the Financial Stability Board, which is taking an increasingly active role in implementing G20 objectives. Commissioner Walter further noted that the SEC is an active participant in IOSCO (the International Organization of Securities Commissions).
- Bilateral discussions and small forums. Because the multilateral organizations do not legislate or write rules, Commissioner Walter emphasized the importance of direct communication with the SEC's foreign counterparts to "facilitate identification and discussion of common issues of regulatory concern, enhance enforcement cooperation, and, in some cases, expand on existing training and technical assistance efforts."
Specifically, Commissioner Walter outlined the SEC's efforts to work with international entities with respect to reform of the OTC derivatives markets, identification and mitigation of system risk, the Volcker rule, and market efficiency and integrity.
A copy of the complete testimony is available on the SEC's website, at http://www.sec.gov/news/testimony/2012/ts032212ebw.htm