The IOSCO Multilateral Memorandum of Understanding (MMoU), signed by 130 jurisdictions, is the global benchmark for information exchange. It has enabled thousands of information requests exchanged each year since 2003, facilitating cross-border investigations into insider dealing and market manipulation that would have been impossible without cooperation. The Enhanced MMoU of 2017 strengthened this capability by providing access to audit documents and electronic communications.

The Standing Committee on Supervisory and Regulatory Cooperation of the Financial Stability Board (FSB) defines the guidelines for supervisory colleges. These colleges bring together regulators from the various jurisdictions in which a systemic institution operates, as illustrated by Crisis Management Groups for G-SIFIs. Without this coordination, resolving an institution present in multiple jurisdictions would become chaotic, as demonstrated by the Lehman Brothers collapse.

US markets represent 49.1% of global stock market capitalisation, which stands at $126,700 billion. This information is crucial because it shows the dominance of US markets and the importance of international supervision to prevent systemic shocks that could quickly spread through these interconnected markets.

The IMF played a crucial role during the crisis by mobilising nearly $500 billion for affected countries and injecting $250 billion in global liquidity. These actions illustrate the importance of a coordinated response to a global financial crisis, as underscored by the FSAP programme, which regularly assesses the financial stability of systemically important jurisdictions.

The data indicate that cross-border bank claims reach $41 trillion with annual growth of 3.4%. This information is crucial because it demonstrates the growing interconnection of financial markets, requiring international cooperation to manage systemic risks. OTC derivatives represent approximately $700 trillion in notional value, further underscoring the importance of coordination.

OTC derivatives represent approximately $700 trillion in notional value. This information is essential for understanding the scale of global financial markets and the need for international cooperation to supervise these complex and interconnected instruments, as demonstrated by their role in the 2008 financial crisis.

This question distinguishes concrete cooperation mechanisms (such as the MMoU) from the negative consequences of a lack of coordination (such as regulatory arbitrage). The MMoU and supervisory colleges are concrete tools for strengthening financial stability, while regulatory arbitrage and the race to the bottom in deregulation illustrate the risks of absent cooperation, as highlighted by Erik Thedéen.

Since 2010, FSAP assessments have been mandatory for the 47 jurisdictions with systemically important financial sectors. This recognises that the financial stability of these jurisdictions constitutes a global issue requiring international surveillance. The FSAP programme has been conducted for 157 IMF members since its launch, with 12 to 14 assessments conducted annually.