The CESR and SEC chairmen also shared views regarding market structure issues, systemic risk, and issues relating to the convergence of International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP). 

Since so many globally active financial firms operate in both the United States and Europe and would be subject to new rules in both markets, Chairman Schapiro and CESR Members (the Chairs of Europe’s Member State securities regulators) agreed to meet to discuss the cross-border implications of European and U.S. efforts. They also are considering how these efforts might be coordinated to improve their effectiveness while minimizing the likelihood of regulatory arbitrage and unnecessary conflicts of laws. 

During the discussion, the Chairs pledged to continue periodic discussion on these issues as they implement new regulations and to work collaboratively regarding possible areas for future collaboration as they oversee market participants registered in each jurisdiction.  

In addition to the meeting with Chairs of EU national regulators, Chairman Schapiro separately met with representatives involved in the EU legislative process, including Vittorio Grilli, Chairman of the EU Financial Services Committee (FSC) and Director General of the Treasury, Italian Ministry of Economy and Finance, and Jean-Paul Servais, member of the Financial Services Committee (FSC) and President of the Belgian Banking, Finance and Insurance Commission and senior representatives of the European Commission . The FSC and ESC are EU entities that represent the Member States in the EU legislative process, ultimately reporting to the Economic and Financial Affairs Council, commonly referred to as ECOFIN. During their meeting, they discussed a number of issues of common concern, including the regulation of over-the-counter derivatives and oversight of credit rating agencies and managers of hedge and private equity funds, as well as other issues involving market structure.

Press release