Australia/US Mutual Recognition Arrangement

US and Australia agree framework for simplified cross-border securities activity.

Early last week, the US Securities and Exchange Commission (SEC) and Australian authorities reached an agreement, referred to as the Mutual Recognition Arrangement, to allow certain broker-dealers and exchanges to operate in both jurisdictions, generally without the need for them to be separately regulated in each of the countries. The Mutual Recognition Arrangement is the first of its kind involving the US, and the results of its implementation over the coming months will be eagerly watched by market participants.