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Securities Markets: Challenges to Harmonizing International Capital Standards Remain

GGD-92-41 Published: Mar 10, 1992. Publicly Released: Mar 10, 1992.
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Highlights

GAO reported on international efforts to harmonize capital standards for securities firms and for banks' securities activities, focusing on the implications of those harmonization efforts for U.S. capital standards.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
United States Securities and Exchange Commission With respect to the implications of international efforts for U.S. securities markets and the U.S. securities capital standards, the Chairman, Securities and Exchange Commission (SEC), should consider revising its capital rule to recognize more foreign markets and more foreign securities as readily marketable under the SEC 1975 criteria and develop a mechanism to recognize additional foreign securities and markets as they develop.
Closed – Implemented
SEC is allowing broker-dealers to hold more foreign securities without capital penalties under a temporary method for calculating the ready marketability of foreign securities. SEC is seeking comments on this change as it contemplates a permanent rule change.

Full Report

Full Report (72 pages)

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Sarah Kaczmarek
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Topics

International Affairs
Bank managementBanking regulationBrokerage industryCapitalConsumer protectionForeign trade agreementsInternational economic relationsLending institutionsSecurities regulationStock exchanges