ABSTRACT
The Atlantic Community dominates the trade in financial services. Regulatory arbitrage is a constant danger in financial services regulation, which the Atlantic partners consistenly seek to minimize. There are five governance options on a continuum from market-based to binding international rule-making. Examination of EU and US financial services regulation prior to and after the 2007–2008 global financial meltdown reveals substantial policy convergence. The penultimate section assesses the feasibility of each governance scenario, concluding non-binding transatlantic and international fora have been effective in promoting policy converg ence. The chapter concludes with implications for the future of transatlantic regulatory cooperation in this sector.
