The U.S. Securities and Exchange Commission has proposed a relaxation of the rule governing the access of foreign brokerage firms to U.S. markets.

The Securities Industry and Financial Markets Association applauded the SEC’s decision to open the rule, which governs how overseas investment professionals may approach potential U.S. clients and how those parties conduct business, to revision.

SIFMA has been calling for changes to the rule for some time. At the end of May, after the SEC and the Canadian Securities Administrators announced a schedule for a possible U.S.-Canada mutual recognition arrangement, SIFMA called on the SEC to immediately amend the rule (known as 15a-6), saying, “Such a move would eliminate unnecessary inefficiencies from international financial transactions, increase investment opportunities for investors and improve the competitiveness of the U.S. financial services industry.”

“Today’s action by the SEC recognizes that our industry operates in a truly global, interconnected environment,” said Ira Hammerman, senior managing director and general counsel of SIFMA.

“By opening up this two-decade old rule for reform, the commission helps ensure that U.S. markets remain competitive, instead of shackled by arcane and duplicative regulations written before the advent of e-mail or the Internet,” he added. “Modernizing how overseas brokers interact with U.S. investors is a tangible step forward in the movement to make the U.S. more competitive in the global marketplace.”