The Commodity Futures Trading Commission and the Securities and Exchange Commission announced that they anticipate releasing a report on October 15 identifying key areas in which their regulatory schemes differ and recommending legislative and regulatory actions to harmonize these schemes and strengthen their respective enforcement powers. The report responds to the Obama administration’s June 2009 White Paper on Financial Regulatory Reform directing the agencies to recommend amendments to relevant laws and regulations necessary to harmonize the regulation of futures and securities.
The report is expected to address, among other matters: product listing and approval; rules- versus principles-based approaches to the approval of exchange and clearinghouse rules; risk-based portfolio margining and related bankruptcy considerations; 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; and cross-border regulatory matters.
The CFTC press release can be found here.
The SEC press release can be found here.