Cox called for a committee of the International Organization of Securities Commissions to discuss via teleconference regulations on short selling and derivatives, which have come under fire as world markets buckle under the ongoing credit crunch. The meeting comes as battered financial giant Citigroup Inc., which is trading at historic lows, is reportedly lobbying the
SEC to reinstate a temporary ban on short selling financial stocks.
"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."
International regulators will also focus on the role of credit-rating agencies and international accounting standards. - Donna Block
Although Securities and Exchange Commission Chairman Christopher Cox is a lame duck, he is still calling a meeting of international regulators Monday to deal with "urgent regulatory issues" stemming from the global financial crisis.
