Speech McCreevy - The Future of the Transatlantic Capital Market

26 March 2007

Speaking on the Finance Dublin Annual Conference Commissioner McCreevy laid out the progress achieved so far in transatlantic relations. “There is a lively debate in the US about whether current regulations, regulatory structures and regulatory philosophies are appropriate for today’s markets or whether lessons can be learned from Europe”, he said. “All ask whether it would not be beneficial for the US to move to a more principles-based regulatory framework.”

McCreevy repeatedly argued against any protectionist measures by regulatory authorities. “Regulators must ensure that the terms of any deal are consistent with competition rules, securities laws and the public interest. But they should steer clear of determining what constitutes the best value in any particular case.”

Referring to the NYSE-Euronext deal and other possible future allianced he noted that “at some point, we are likely to see moves towards a common pool of liquidity. The regulatory system will be pushed to the limit. The extent of what markets may push for may go beyond anything that we currently expect.”

For the development of ta transatlantic market, “a core requirement will be that we learn to rely on each other in a regulatory sense” the Commissioner said and pointed out three main issues:

Regulators should only step in when needed

Any action should be taken in a co-ordinated multilateral manner

Get rid of as much regulatory duplication as possible

“We should not be aiming for a 'one-size-fits-all' solution”, McCreevy finally stated. “Choice of regulatory framework and competition between states can be healthy. But the principles should be similar.”

Full speech

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