Statement, Global Markets Advisory Committee
Commissioner Michael V. Dunn
October 5, 2010
The world we live in today is smaller and more interconnected than at any time in our history. Financial events taking place in the United States, are like skipping stones crossing oceans and sending ripples through the markets in Europe and Asia. The United States cannot stand alone in the effort to bring transparency to the OTC markets and in crafting best practices for risk management in the financial industry. If we are to make financial reform meaningful and effective, we must tackle this issue hand and hand with our sister regulators around the world. Only together can we accomplish the ultimate goal of creating a secure, stable and productive global financial system.
I would like to first thank Chairwoman Sommers for all her work in this area. The panelists she has assembled from throughout the financial world to discuss the new OTC and clearing paradigms is impressive and I look forward to hearing the thoughts of our distinguished speakers. As the world reacts to the recent financial crisis that threatened everyone’s economic stability, it has become apparent that prudential regulators from all countries need to better communicate and harmonize their efforts. Additionally, I would like to welcome Kathleen Casey to this meeting, as past-Chairwoman of the IOSCO Technical Committee her insight into today’s topics will undoubtedly be very valuable.
I would also like to recognize the tremendous work done by our Office of International Affairs under the leadership of its Director Jacqueline Mesa. Although understaffed, this office has done an excellent job at representing the CFTC around the world. Lastly, I would like to thank Chairman Gensler for all his efforts in advocating for greater international regulatory oversight and harmonization.
As we begin to implement the Dodd-Frank legislation, I would again stress the importance of US regulatory agencies working in concert with regulators around the world as opposed to acting unilaterally. World bodies such as the G-20, FSB and IOSCO are all working on financial reform and it is imperative that we understand the directions they are heading. I am hopeful at today’s meeting that the GMAC members will be able to shed some light on actions taken internationally and share their concerns and recommendations. My hope is that regulatory cooperation between countries, with substantial assistance from market users, will lead us to develop a set of comparable financial regulations used throughout the world. Only by working together can financial regulators create an adequate structure for the OTC markets that promotes stability and transparency, while at the same time discouraging any type of regulatory arbitrage.
Thank you all again for your participation in this process.
Last Updated: October 5, 2010