The Securities Industry and Financial Markets Association has issued a statement in support of efforts to improve international regulatory structures via mutual recognition.

Following the meeting between SEC chairman, Christopher Cox, and the European Commissioner for the Internal Market and Services, Charlie McCreevy, SIFMA said it strongly supports their ongoing efforts to develop updated regulatory structures that address the increasingly global nature of the financial marketplace.

“In particular, SIFMA encourages both regulatory bodies to develop a framework for mutual recognition. This should lead to increased transatlantic market efficiency and liquidity, while also enhancing investor protection,” said Ira Hammerman, senior managing director and general counsel for SIFMA.

Hammerman added, “Since the mutual recognition process is a long-term goal, SIFMA strongly urges both the European Commission and the SEC to work expeditiously in taking steps that will have a more immediate effect on international capital flows.” For example, he suggested that the SEC amend certain rules to eliminate unnecessary inefficiencies from international financial transactions, which would increase investment opportunities for the EU and improve the competitiveness of the U.S. financial services industry.