TSX Group CEO Richard Nesbitt today proposed to bring North American markets under the equivalent of the North American Free Trade Agreement (NAFTA).

According to Nesbitt, “Low cost, less restricted electronic trading in securities would be a win-win for investors and issuers on both sides of the border. Freer trade would inject more competition into securities markets, increase efficiency, and open new investor opportunities.”

Nesbitt made his comments during a speech this morning at the National Press Club in Washington. He called for a commitment by the President of the United States and the Prime Minister of Canada to free trade in securities.

He also believes there needs to be a new set of relationships between the various levels of regulators on both sides of the border, by exchanges and other self- regulatory organizations. Nesbitt would like to see each country recognize each other’s regulatory oversight and anticipates enhanced agreements to systematically share relevant market surveillance information among regulators, law enforcement agencies and others.

Nesbitt added, “We think it is time to go to free trade in securities between Canada and the United States. We think it’s time to move to mutual recognition of exchange standards on both sides of the border, and consider greater competition between Canada and the United States in listing, trading and data.” He went on to say, “We think that both sides will reap huge benefits in terms of market efficiencies.”

Nesbitt is in Washington for two days of meetings and speaking engagements. He will meet with top U.S. administration officials as well as key members of Senate and House committees.