International: Global Competitiveness
Last Updated: June 9, 2008
Overview:
The U.S. capital markets have long been a leader in the global market economy of trade, finance and technology. Recently there have been many concerns that significant capital market activity has moved from U.S. markets to non-U.S. exchanges. Recent studies have suggested regulatory burdens and legal risk are the main causes for driving activity to competing global markets.
Position:
SIFMA believes certain legal and regulatory changes in the United States will increase the efficiency of capital markets, promote investor protection and create a robust, sensible system of oversight.
Status:
The Treasury Department is currently working on a study of the current U.S. regulatory environment. The report is expected to be released in the coming months. In November, SIFMA responded to the Treasury’s request for public comment on the regulatory structure of financial institutions.
Sowing Seeds Through Science and Engineering Research Act (H.R.363), signed into law on August 9, 2007, included a sense of the Senate that (1) Congress, the President, regulators, industry leaders, and other stakeholders should take necessary steps to reclaim the preeminent U.S. position in the global financial services marketplace; (2) federal and state financial regulatory agencies should take certain steps to avoid adverse consequences on innovation with respect to financial products and services, and regulatory costs that are disproportionate to their benefits; and (3) Congress should exercise vigorous oversight over federal regulatory and statutory requirements affecting the financial services industry and consumers. The language was sponsored by Sen. Mike Crapo (R-ID) and Sen. Chuck Schumer.
