Good morning. I would like to start by thanking Chairman Schapiro, my fellow Commissioners, members of the Securities and Exchange Commission and our distinguished panelists for being here today. It’s good to be at the SEC and working cooperatively to best serve the American public. In our first day of meetings yesterday, we heard from experts with valuable insight on the areas where the CFTC and the SEC could better promote market integrity and transparency and prosecute fraud, manipulation and other abuses through greater consistency in our regulations.
I believe that there are three broad areas where the CFTC and the SEC must work to enhance our regulatory structures. First, we must close the gaps that exist between the two agencies’ financial regulatory authorities, including over-the-counter derivatives. Second, we should ensure that regulatory overlap only exists where it is beneficial, such as in joint enforcement, and not when it can be used for regulatory arbitrage. Third, we must explore where it is appropriate to bring consistency to the two agencies’ regulation over similar products, practices and markets.
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