The heads of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission said Wednesday they will soon release a report recommending how to harmonize their respective regulatory regimes.

The chairs of both the SEC and CFTC said that they anticipate that, within two weeks, the two agencies will issue a report that will address key areas in which their regulatory schemes are different, and it will recommend legislative and regulatory actions to address those differences where appropriate.

It is expected that the report will include discussion of issues such as: product listing and approval; market manipulation and insider trading rules; customer protection standards; and cross-border regulatory matters.

It will also contain recommendations to Congress and President Barack Obama designed to: strengthen their enforcement powers; enhance and harmonize customer protection standards; and, establish an ongoing coordination and advisory process.

“We must continue to build upon the progress we are making to reduce regulatory arbitrage, avoid unnecessary duplication and close regulatory gaps,” said SEC chairman, Mary Schapiro. “We are fully committed to continuing on the path toward reform.”

“The CFTC and the SEC have been working very closely to best tailor our regulations in the best interest of the American public,” CFTC chairman, Gary Gensler, said. “I look forward to reporting to Congress and the president on identifying substantive changes that both agencies can make to close regulatory gaps, address inconsistencies and ensure that any overlap best serves the public.”

IE