Financial Services Authority (FSA) chief
executive Hector Sants and US Securities and Exchange Commission
(SEC) chairman Mary Shapiro have met as part of the SEC-FSA
Strategic Dialogue sessions established in 2006.

The purpose of the dialogue is for the two
agencies to discuss current matters affecting the UK and US capital
markets and also to discuss areas of future collaboration.

During the meeting the following areas were
discussed: cross-border enforcement cases, the global regulatory
agenda, regulatory reform, oversight of over-the-counter
derivatives trading and clearing, market structure issues including
high frequency trading, market surveillance and short selling.

“Close cooperation between the FSA and the SEC
is important as we seek to meet the G20 commitment to enhance
transparency, mitigate systemic risk and protect against market
abuse,” FSA chief executive Sants said.

Schapiro said as “Europe and the US continues
to enhance regulation in the wake of the financial crisis, working
with all of our counterparts is essential to help prevent
regulatory arbitrage, especially in the areas involving
over-the-counter derivatives and market structure”.