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US and Hong Kong securities regulators strengthen cross-border ties

19 January 2017


Both regulators agreed on sharing information on exchanges, brokers, funds and clearing agencies

Read more: SEC SFC cross-border regulation

A new cross-border cooperation agreement between US securities regulator the SEC and its Hong Kong counterpart, the Securities and Futures Commission (SFC), entered into force this week.

Both regulators have agreed on specific terms for supervising and sharing information on exchanges, brokers, investment funds and clearing agencies operating in both jurisdictions.

Led by IOSCO chairman Ashley Adler, the SFC has been building ties with overseas authorities to solve regulatory overlaps, gaps, and inconsistencies between markets.

The Hong Kong regulator has similar accords in place with CFTC, the top US derivatives regulator, along with ESMA and the UK’s Financial Conduct Authority.

It has also been strengthening its own oversight to meet international standards and plans to introduce a tougher set of reporting rules for asset managers in a bid to boost investor protection.

Securities lending, repo, custody, liquidity risk management and disclosure of leverage are all areas marked for enhanced reporting.

Meanwhile, the SEC now has over seventy-five formal cooperative arrangements with foreign regulators and law enforcement agencies.

Its chairwoman Mary Jo White will step down this week and Wall Street lawyer Jay Clayton is President-elect Donald Trump's choice for her replacement.


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