SEC convenes meeting of international regulators

Meeting of international regulators to discuss short selling and derivatives regulation

WASHINGTON, DC - Christopher Cox, chairman of the US Securities and Exchange Commission will convene a meeting of the International Organization of Securities Commissions (Iosco) technical committee on November 24 by teleconference to discuss urgent regulatory issues in the ongoing credit crisis.

"In addressing turbulent market conditions, it is essential not only that regulators act against securities law violations, including abusive short selling, but also that there be close co-ordination among international markets to avoid regulatory gaps and unintended consequences," said Cox. "This high-level co-ordination among international regulators will allow us to review the steps we have taken thus far and ensure that our ongoing and future actions are effective and mutually reinforcing."

The technical committee meeting will consider the effectiveness of recent regulatory responses in reducing manipulative short selling without stifling legitimate short-selling activity, and explore possible co-ordination on rules relating to naked short sales, in particular with regard to position reporting and delivery and pre-borrowing requirements. It will also develop disclosure principles to promote transparency in OTC markets for derivatives and other financial instruments that will contribute to enhanced investor protection and mitigating systemic risk.

The committee will also assess members' progress in adopting rules based on Iosco's revised Code of Conduct for Credit Rating Agencies, and ensure that the process of developing international accounting standards continues to take account of the interests of investors.