important as firms are governed by different capital adequacy regimes for their investment and trading books.
It is apparent that valid international agreements in the area of financial regulation involve the loss of national sovereignty. As the chairman of the SIB concludes, "The areas in which national regulators can act wholly independent of each other is being rapidly eroded by technology and other market developments." 319 This observation is also true with regard to national insolvency proceedings insofar as market charges are concerned. Within the EEC, the continued role of SROs and their Conduct of Business Rules (CBRS) will hamper the creation of a single market by prolonging disparate regulatory regimes and marketplaces. While CBRs are bound to be culturally sensitive and difficult to directly incorporate into statutory law, harmonization of CBRs is a sine qua non of a successful single market.
Financial liberalization in Europe is part of a global movement. The geometric increase in complexity of world financial markets receives divergent reviews as to its effects on financial market volatility--different organs within Bank for International Settlements reach opposite conclusions. 320 Nonetheless, this increase and the growing interdependence of global markets necessitates increased coordination of securities and monetary authorities and enhances the case for EEC and global regulation.
The Third Directive on Life Assurance 92/96 EEC ( November 1992), which amends the Second Life Directive and the Third Directive on Non-Life Assurance 92/96 EEC ( June 1992), which amends the Second Non-Life Directive establish the right of communitywide branching for assurance undertakings whose head office