SEC Chairman, Euronext regulators meet to discuss cooperation in the event of the NYSE Euronext combination
27th September 2006The chair of the SEC and the Chairman's Committee of the Euronext regulators met in Lisbon today, in light of a potential combination between the NYSE Group, Inc. and Euronext N.V. into NYSE Euronext. They discussed the development of a possible framework for consultation and mutual cooperation in the interest of meeting their respective regulatory mandates in the areas of investor protection, orderly functioning and integrity of the markets. The regulators also affirmed that joint ownership or affiliation of markets alone would not lead to regulation from one jurisdiction becoming applicable in the other and stated their shared belief in the importance of local regulation of local markets.
On 1 June 2006, the NYSE Group and Euronext NV announced the signing of a combination agreement in order to create a new group, NYSE Euronext Inc. The holding company is proposed to be incorporated in the US, the shares of which would be listed on NYSE and on Euronext Paris. The proposed combination is subject to prior authorizations by the respective Euronext Regulators and, in some cases, the Ministers of Finance, on the European side and by the SEC in the United States.
Regulators are not taking a position on the proposed combination. They recognize that shareholders will ultimately decide on whether the proposed combination will go forward. Therefore, the framework for regulatory cooperation would come into effect once shareholders and relevant authorities have given their final decisions.
Regulators are conscious that markets are globalizing, to the potential benefit of investors everywhere, making increased international cooperation of regulators essential.
Carlos Tavares, Chairman of the CMVM and coordinator of Euronext Regulators said:
"The European Regulators and the SEC clearly converged on the need of a strong cooperation between the regulators, grounded on a common approach to the challenges raised by the proposed combination and market development. We welcome SEC's willingness to base such cooperation on a common respect for the autonomy and scope of each national regulation and jurisdiction".
