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US calls meeting of world regulators amid crisis

US calls meeting of world regulators amid crisis

The chairman of the U.S. securities regulator said Thursday that has convened a meeting of international regulators for next week to deal with "urgent regulatory issues" stemming from the global financial crisis.
Securities and Exchange Commission Chairman Christopher Cox called for a committee of the International Organization of Securities Commissions to discuss topics including regulations on short selling and derivatives, which have come under fire as world markets buckle under the ongoing credit crunch.
The Madrid, Spain-based organization describes itself as the international standard-setter for securities markets. The meeting will be held via teleconference on Monday, the SEC said.
"In addressing turbulent market conditions, it is essential not only that regulators act against securities law violations, including abusive short selling, but also that there be close coordination among international markets to avoid regulatory gaps and unintended consequences," Cox said in a statement.
Cox said the meeting will allow regulators to review recent international steps including those taken to curtail abuses by short sellers, and coordinate future policies so that they are "effective and mutually reinforcing."
The meeting comes as Citigroup Inc. and other big banks are lobbying the SEC to reinstate a temporary ban on short selling stocks in financial companies, which have seen their shares relentlessly hammered during the market downturn.
Short sellers bet against a stock or other securities. The practice, which is legal and widely used on Wall Street, involves borrowing a company's shares, selling them, and then buying them when the stock falls and returning them to the lender. The short-seller pockets the difference in price.


Updated : 2021-10-19 11:21 GMT+08:00