To avoid regulatory arbitrage among global financial centers – whereby an institution chooses a nominal place of business with less stringent or less expensive regulatory regimes – a number of coordinating bodies, including the Bank of International Settlements (BIS) and the Group of Twenty (G-20), continue to work to create a harmonized network of regulation. 

Though there are still differences to resolve between the European Union (EU) and the U.S. on issues such as over-the-counter derivatives and alternative investment funds, regulatory measures implemented by both jurisdictions have been remarkably consistent. Regulators from both the EU and U.S. have been vocal about creating a harmonized financial system and avoiding arbitrage opportunities.