The Securities and Exchange Commission (SEC) seeks to increase investors' access to foreign markets by negotiating bilateral agreements with foreign regulators pursuant to a policy known as "mutual recognition." Under mutual recognition, a foreign entity seeking to access U.S. capital markets would be permitted to substitute compliance with its home country's regulations for compliance with U.S. regulation, as long as it agrees to submit to SEC antifraud jurisdiction in its dealings with U.S. investors. Similarly, U.S. entities could enter foreign markets without subjecting themselves to a second layer of regulation on top of what the SEC already requires. This article suggests that the best way for the SEC to pursue mutual recognition is to recognize foreign securities regimes that achieve investor protection outcomes comparable to those achieved by the SEC, and provides a concrete and workable approach for the SEC to follow.

Houman B. Shadab writes about how current discussions on regulations and policies about financial instruments by policymakers fail to distinguish between Credit Default Swaps and the actual mortgage-related debt securities, entities, and practices at the root of the financial crisis.

Senior Research Fellow Houman B. Shadab opines upon a handful of topics addressing hedge funds.

In this article Houman Shadab addresses the inaccessibility of the U.S. hedge funds market.