The Effective Regulation of Transnational Securities Fraud in Global Markets

Abstract

The increase in cross-border securities transactions produces more opportunities to commit transnational securities fraud. Increasing transnational securities fraud could diminish investor confidence in global markets, resulting in less investment and more impediments to the free flow of capital across borders. In order to regulate the cross-border fraudulent activities effectively, securities regulators need international cooperation. The scope of such cooperation has indeed developed and expanded over time. This Article suggests that securities regulators should continue to negotiate and implement mutual and multinational assistance agreements, and anticipates that the IOSCO could play a critical role in providing international markets with tools necessary for successful regulation of securities fraud.