The Securities and Exchange Commission has moved toward allowing overseas units of U.S. banks to follow foreign rules as long as all parties in a transaction are outside the U.S. In addition, overseas firms working with U.S. companies could stick to their homeland's regulations provided they are broadly comparable to U.S. rules. Kenneth Bentsen Jr., acting president and CEO of SIFMA, welcomes the move. "We believe that foreign regulations should be assessed on a comprehensive, ultimate, outcome-level basis, not rule-by-rule nor transaction-by-transaction," Bentsen said. "This will be critical to working effectively with foreign regulatory bodies to oversee global markets for these products." Read SIFMA's statement on the SEC proposal.

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