AMF Chairman Jean-Pierre Jouyet met respectively with US Securities and Exchange Commission (SEC) Chairman Mary Schapiro and US Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler in Washington, D.C., on 9 and 10 September 2010. These meetings provided the opportunity to discuss the main issues at stake with regards the financial regulatory reforms currently underway in the United States (US), in Europe and at the international level.
AMF/ US SEC
During the meeting, Chairman Jouyet and Chairman Schapiro discussed a broad range of market issues regarding which the AMF and SEC are currently developing regulations. Among the issues discussed are those covered by the Dodd-Frank Wall Street Reform and Consumer Protection Act in the US and the MiFID1 review and the forthcoming proposals for market infrastructure legislation in Europe, including oversight of OTC derivatives, central clearing counterparties, markets, hedge fund advisers, and credit rating agencies. They discussed the international implications of the SEC’s and AMF’s work in these areas, and affirmed their intention to give effect to the G20 consensus on regulatory reform in implementing US and EU legislation.
Chairman Jouyet and Chairman Schapiro also discussed the regulatory challenges to the maintenance of fair, efficient, transparent and orderly markets, as well as key developments, such as trading and the heterogeneity of national standards, in increasingly interconnected markets. Given the breadth of the areas of common interest, they agreed to continue sharing views on a regular basis, and in particular when considering the most appropriate way to address regulatory challenges with cross-border implications, in order to facilitate promoting consistency and effective cooperation at the international level.
AMF/US CFTC
Chairman Gensler and Jouyet agreed that reform of the OTC derivatives market requires at a minimum the following three essential elements: comprehensive regulation of derivatives dealers, greater transparency of OTC transactions to regulators and the public by requiring standardized products to be traded on transparent multilateral trading facilities, and the reduction of risk to the economy by subjecting standardized OTC products to clearing.
The Chairmen shared the view that because capital and risk know no geographic boundaries, the nature of today’s marketplace demands a coordinated, international approach. The Chairmen committed themselves to work across borders to achieve the goals set forth by G-20 leaders with respect to strengthening OTC derivatives regulation.
The Chairman also stressed that the robust regulation of all physical commodity markets – including agricultural as well as energy products – is vital to the global economy. The Chairmen agreed that the recommendations in this regard set out in the IOSCO Task Force Report on Commodity Futures Markets should be taken forward globally.
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