Speech by SEC Commissioner:
SEC/CFTC Joint Meetings On Regulation Harmonization
Opening Remarks

by

Commissioner Troy A. Paredes

U.S. Securities and Exchange Commission

Joint Meeting of the Securities and Exchange Commission and
Commodity Futures Trading Commission
Washington, D.C.
September 2-3, 2009

Thank you to the staff and to the panelists who are participating in these joint meetings. I greatly appreciate the chance to hear your views.

Harmonization is not an end in and of itself. Indeed, it is not clear what "harmonization" means exactly or at what point it is realized. For example, there may be legitimate reasons for certain differences to persist between the regulatory approaches of the CFTC and the SEC. To me, the language of "harmonization" speaks to a broader objective - namely, the goal of identifying and undertaking regulatory steps to ensure that we have innovative, efficient, and competitive markets that serve investors and our country's economic interests more broadly.

Over the next two days, we'll cover a range of topics: portfolio margining, the approval of new products, enforcement, and clearing, to name a few. Even in those particular instances where harmonization is not prudent or achievable, some regulatory change may still be called for. I welcome ideas that could improve the SEC's regulatory regime and approach, even if securities regulation and futures regulation continue to differ. For example, there undoubtedly are regulatory changes that could promote competition and capital formation while properly protecting investors' interests.

Finally, the search for harmonization need not be "all or nothing." Whether or not the "law on the books" is harmonized, there is still room for the two agencies to cooperate and coordinate in a more effective manner. We should take advantage of those opportunities when they present themselves.

Thank you.

http://www.sec.gov/news/speech/2009/spch090209tap.htm