SEC’s Atkins signals harmonisation push ahead of memorandum

Speaking at the FIA BOCA conference in Florida on Tuesday, Paul Atkins confirmed staff has been tasked with putting together a memorandum of understanding (MOU) to integrate US rules.

“As will be highlighted in our Harmonisation MOU, examination and enforcement oversight present opportunities for coordination—and can create similar costs in its absence,” Paul Atkins (pictured) said in a keynote address. “Many institutions operate under both regulatory regimes simultaneously. Yet examinations may proceed without regard for each other and the burdens imposed by multiple, potentially overlapping exams.”

Among the measures will be a commitment to overhauling the enforcement process.

“With regards to enforcement, let me be clear: the regrettable era of duplicative enforcement actions and conflicting remedial obligations for the same conduct is over,” he added, to some applause from the audience. “Conduct in a single operating environment means that the SEC and Commodity Futures Trading Commission, within the bounds of their independent statutory authority and regulatory interests, should coordinate legal theories and remedial strategies. Fragmented, redundant enforcement does not increase deterrence—it only increases confusion.”

The comments, the firm from an SEC chair at the conference, echo the tone set by CFTC counterpart Michael Selig earlier in the week. On prediction markets, he said the agency would take efforts to provide clarity on the definition of event contracts.

“National securities exchanges are increasingly exploring the role that event-based products might play within SEC-regulated markets,” he added. “These instruments can offer transparent, exchange-traded ways for market participants to express views about economic outcomes or hedge discrete risks. Whether registered with the SEC or with the CFTC, market participants deserve clarity and good-faith cooperation from their regulators.

“Through our efforts to do so, we can create a level playing field where established firms and new entrants alike can compete and innovate on equal footing – each having a seat at the table in shaping the future of our financial markets.”