WASHINGTON Richard Roberts, a commissioner on the Securities and Exchange Commission, is applauding efforts by the SEC and the Commodity Futures Trading Commission to devise compatible risk assessment guidelines for affiliated derivatives firms.
"This, hopefully, will be an example of how r.egutatory bodies, working together, can arrive at commonsense practical solutions to issues raised by products that cross jurisdictional regulatory boundaries, as derivatives activities do," Roberts said in remarks prepared for delivery today at a conference in New York hosted by the Securities Industry Association and the American Institute of Certified Public Accountants.
"I wish to point out that no market development highlights the need for more coordination and consistency from a financial regulatory standpoint than does the increase in derivatives activities," he said.
Roberts noted that SEC staff is evaluafmg current SEC vales, which were adopted two years ago, and is working with the industry toward developing methods to make the program more efficient.
The commissioner said SEC staff may recommend fo the commission ways to enhance over-the-counter derivative disclosure under the program.
Those recommendations may include revisions to the materiality threshold on counterparty concentrations, collection of additional information on the risk management policies of the dealers, collection of additional information on credit risk and increased profit and loss information, Roberts said.
