Does Europe need an SEC? : Securities market regulation in the EU

The rapid integration of capital markets under EMU has triggered a debate on the remaining barriers to a true single market. Some have argued the need for a 'European SEC' to help overcome these barriers. This would be a step too far, however. Not only is there first a need for more regulatory harmonisation, which the European Commission is committed to achieving, but it would also require an amendment to the EU Treaty. Nor is it particularly desirable either, for securities markets will most likely evolve differently in the EU than they have in the US. Furthermore, some degree of regulatory competition can do no harm, and is implicit in the principles governing the single market, as long as it does not hamper market integration. This also fits with the current structure of market supervision in the EU, where the dividing line between regulation and self-regulation differs importantly from country to country.