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SEC and CFTC Chiefs to Issue Harmonization Report

The heads of the SEC and CFTC have announced that the report making "recommendations to Congress for changes to statutes and regulations that would harmonize regulation of futures and securities" called for by the White Paper on Financial and Regulatory Reform will be released on October 15.  In their announcement, the agencies stated that the report will "address key areas in which their regulatory schemes are different," and "will recommend legislative and regulatory actions to address those differences where appropriate." The focus of the harmonization report will be:


    • Product listing and approval


    • Exchange/clearinghouse rule approval under rules- versus principles-based approaches


    • Risk-based portfolio margining and bankruptcy/insolvency regimes


    • Linked national market and common clearing versus separate markets and exchange-directed clearing


    • Market manipulation and insider trading rules


    • Customer protection standards applicable to broker-dealers, investment advisors and commodity trading advisors


    • Cross-border regulatory matters


The agencies also anticipate the report will make recommendation to Congress and the President designed to:

(1) strengthen their respective enforcement powers;
(2) enhance and harmonize customer protection standards; and
(3) establish an ongoing coordination and advisory process.

The report promises to contain some items pertinent to the fund industry.  When the report is released, Forum News Feed will provide summaries of the relevant sections. The full text of the joint SEC and CFTC announcement is available at:

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