John Marshall Global Markets Law Journal


Nico Klein


International cooperation and coordination among countries is a highly sought after goal for many. In that regard, in order to achieve international cooperation and coordination, this Article focuses on the concept of mutual recognition and the key areas of global financial regulatory reform to which the concept could be applied. The benefits of mutual recognition are increased market liberalization, facilitation of private cross-border movement, and increased regulatory standards. To discuss the concept of mutual recognition, this Article examines the European Union/European Economic Area approach provided by the Markets in Financial Instruments Directive (“MiFID”). This Article reviews the EU’s idea of a single European Market based on fundamental freedoms. Further, it concludes that in order to establish a system of mutual recognition between two countries in a particular field of financial regulation, the countries must have some form of regulatory coordination or harmonization.