Securities and Exchange Commission chairman Christopher Cox has convened a teleconference meeting of the technical committee of the International Organisation of Securities Commissions on

Securities and Exchange Commission chairman Christopher Cox has convened a teleconference meeting of the technical committee of the International Organisation of Securities Commissions on November 24 to discuss what he says are urgent regulatory issues arising from the ongoing credit crisis.

'In addressing turbulent market conditions, it is essential not only that regulators act against securities law violations, including abusive short selling, but also that there be close coordination among international markets to avoid regulatory gaps and unintended consequences,' Cox says.

'This high-level co-ordination among international regulators will allow us to review the steps we have taken thus far and ensure that our ongoing and future actions are effective and mutually reinforcing.'

According to Cox, the committee will examine the effectiveness of recent regulatory responses in reducing manipulative short selling without stifling 'legitimate' shorting activity, and explore possible co-ordination on rules relating to naked short sales, in particular with regard to position reporting and delivery and pre-borrowing requirements.

With regard to what the SEC chairman describes as under-regulated or unregulated products, the meeting will be invited to develop disclosure principles to promote transparency in OTC markets for derivatives and other financial instruments that would enhance investor protection and mitigate systemic risk.

In addition, the meeting will assess members' progress in adopting rules for credit rating agencies based on Iosco's revised code of conduct, and accelerate work on developing a common examination module. It will also seek to ensure that the process of developing international accounting standards continues to take account of the interests of investors.