The U.S. Securities Industry and Financial Markets Association applauded the U.S. Securities and Exchange Commission’s plans to pursue mutual recognition with other regulators, and urged the SEC to seize the opportunity.

SIFMA stressed that mutual recognition could increase international investment opportunities and enhance risk diversification in the US, “at a time when our economy could benefit significantly from new investment and liquidity.”

“Today’s SEC announcement publicly recognizes the importance of moving forward with mutual recognition, but we are concerned that the opportunity to deliver tangible results is slipping away; the clock is ticking, and we urge that the SEC take action now,” said Ira Hammerman, senior managing director and general counsel of SIFMA.

“For example, the SEC could jumpstart this process with modifications to a 19-year old rule, known as 15a-6,” Hammerman added. “Today, international capital flows are more efficient and U.S. firms more competitive with the help of the Internet, e-mail and other technologies invented in the last two decades. But with 15a-6 still on the books, firms are forced to meet byzantine requirements written at a time when fax machines were the leading telecommunications tool.”

SIFMA said that the rule needs to be rewritten to reflect the cross-border capabilities of the industry, and the global product demands of its customers. “This would eliminate unnecessary inefficiencies in international financial transactions, increase investment opportunities and improve the competitiveness of the U.S. financial services industry,” it said.

Indeed, the SEC announcement indicated that it will be proposing reforms to the rule that would provide U.S. investors with better access to foreign broker-dealers.