The U.S. Securities and Exchange Commission (SEC) has signed a deal with Australia to allow brokers and exchanges to do business in either country while being regulated only by their home country, as part of a larger push to globalize markets.
The agreement, signed Monday, could take effect as early as January 2009, a Wall Street Journal report said Tuesday.
The SEC also signed two memorandums of understanding with the Australian securities regulators to increase cooperation on cross-border enforcement and supervision of financial firms.
The report said the SEC has stepped up global initiatives over the past year following reports from three independent groups that U.S. financial markets are losing ground to global competitors because of what they described as excessive regulation.
The mutual-recognition plan paves the way for U.S. brokers and exchanges to seek relief from existing restrictions on doing business with institutional investors in Australia, and for Australian brokers and exchanges to seek the same relief on doing business with U.S. institutional clients.
Each country would retain jurisdiction over any violations of its anti-fraud laws. Investors with 100 million U.S. dollars in assets under management would qualify.
Source:Xinhua
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