LONDON, Oct 13 (Reuters) - Hector Sants, the head of Britain's financial w
atchdog, met U.S. counterpart Mary Schapiro on Thursday, days before the European Commission is expected to unveil a draft law on sweeping reform of EU securities trading rules.
The Financial Services Authority (FSA) said the two chiefs discussed topics such as cross-border enforcement cases, regulatory reform, oversight of over-the-counter derivatives trading and clearing, high-frequency trading, market surveillance and short selling.
'Close cooperation between the FSA and the SEC (Securities and Exchange Commission) is important as we seek to meet the G20 commitment to enhance transparency, mitigate systemic risk and protect against market abuse,' Sants said.
The meeting came ahead of a busy week in the European regulation calendar. European MiFID II measures expected next week will crack down on high-frequency trading, expand the scope of existing rules to commodities and bonds and introduce tougher corporate governance requirements.
The International Organisation of Securities Commissions (IOSCO) is also expected to publish recommendations on regulating high-frequency trading next week.
The FSA and SEC have held senior-level meetings, called 'strategic dialogue meetings', since 2006. Sants said they allowed the two agencies to find common ground, build on areas of mutual interest and identify potential regulatory gaps.
'As Europe and the U.S. continue to enhance regulation in the wake of the financial crisis, working with all of our counterparts is essential to help prevent regulatory arbitrage, especially in the areas involving over-the-counter derivatives and market structure,' said Schapiro.
(Reporting by Kirstin Ridley; Editing by Will Waterman) Keywords: SANTS SCHAPIRO/
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