Securities regulators in the United States and the United Kingdom are planning to explore common reporting requirements for certain key market players such as hedge funds.

The heads of the UK Financial Services Authority and the U.S. Securities and Exchange Commission agreed Wednesday that they will identify a common set of data to collect from hedge fund advisers/managers to help the SEC and FSA identify risks to their regulatory objectives and mandates.

The announcement came out of one of the periodic meetings between the SEC and FSA leaders that are held to discuss areas of mutual interest. This was the fourth in a series of meeting between the regulators, which began back in 2006. Other issues discussed at the latest meeting included over-the-counter derivatives markets and central clearing; accounting issues; regulatory reform; credit rating agency oversight; short selling; and corporate governance and compensation practices.

Yesterday the FSA also signed a new memorandum of understanding with US derivatives market regulator, the Commodity Futures Trading Commission, that is intended to enhance supervision of cross border clearing organizations.

“The global crisis has underlined how intertwined financial markets and institutions are and regulators around the world have to work together to ensure appropriate oversight,” said FSA chief executive, Hector Sants. “We are all working alongside the Financial Stability Board and other international regulatory committees to drive forward global financial reforms. The strategic dialogue with the SEC is a valuable component of the discussions around these reforms, particularly in areas of joint interest and in identifying potential regulatory gaps.”

“As the regulators of two of the world’s major market centres, the SEC and the FSA have a strong interest in collaborating with respect to OTC markets and hedge funds, credit rating agencies and other market participants with cross-border operations. Only through strong cooperation can we achieve coherent oversight of global actors and limit opportunities for playing the regulatory seams. I look forward to continuing this successful dialogue between the SEC and FSA,” added SEC chair, Mary Schapiro.

IE