Cross-Border Cooperation Between Securities Regulators

73 Pages Posted: 20 May 2019

Date Written: May 2, 2019


The events of Sept. 11, 2001, prompted sweeping cross-border coordination efforts for securities regulators around the globe. After 9/11, the International Organization of Securities Commissions (IOSCO) forged a nonbinding arrangement — the Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (MMoU) — that standardized the protocol for information sharing among participating securities regulators. Because regulators from different countries entered the MMoU at different times, their enlistments created a set of staggered shocks. I use these shocks to show that the resulting cross-border cooperation (a) increases cross-border enforcement and (b) reduces the cost of liquidity provision in the capital markets. These results support the idea that the MMoU helps fill gaps in cross-border regulation that historically exposed investors to information asymmetry, agency costs, and expropriation risks.

Keywords: cross border, information sharing, regulatory cooperation, coordination, enforcement

JEL Classification: K22, G38, F22, F23, F59, M48

Suggested Citation

Silvers, Roger, Cross-Border Cooperation Between Securities Regulators (May 2, 2019). Available at SSRN: or

Roger Silvers (Contact Author)

University of Utah ( email )

1655 E Campus Dr
SLC, UT 01003
United States


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