The Securities and Exchange Commission (SEC) and the Committee of European Securities Regulators (CESR) have announced efforts to continue close cooperation as national securities regulators and implement new regulatory reform initiatives. The authorities met this week to discuss regulation of over-the-counter derivatives and oversight of credit rating agencies and managers of hedge and private equity funds. The SEC and CESR agreed to continue to work together as announced in 2004, and to consider how their efforts might be coordinated to improve effectiveness while minimizing the likelihood of regulatory arbitrage and unnecessary conflicts of laws.