A group of U.S. and European financial industry trade associations are calling for greater regulatory coordination and cooperation.

The trade groups — which include the U.S. Securities and Financial Markets Association (SIFMA), the Institute of International Finance (IIF), the European Services Forum (ESF), and other associations of bankers and securities firms — issued a joint statement reinforcing their support for a Transatlantic Trade and Investment Partnership (TTIP) that includes financial services regulatory coordination.

The statement comes in advance of further negotiations to be held this week in New York. “TTIP provides an incredible opportunity to strengthen ties between the United States and European Union while increasing prosperity for both,” it says. “An important component of the final deal is in the financial services sector, sustaining a transatlantic capital market that supports cross-border trade and economic activity, expansion of manufacturing, services and technology sectors and job creation on both sides of the Atlantic. To maximize these benefits it is vital that TTIP includes both a framework for financial services regulatory cooperation as well as solutions to market access issues.”

The groups note that, despite the fact that policymakers recognize the importance of cooperation, “there have been multiple instances of inconsistent, conflicting or duplicative rules between the EU and U.S. over recent years.” In some cases, they say, this has resulted in fragmented markets, impaired liquidity, and imposed significant economic costs on non-financial end-users and risks to investors.

They say that the TTIP represents an opportunity to coordinate financial regulation at an early stage of development. “This is crucial if problems of divergence of approach are to be addressed before they start to have an impact,” it says. “The framework that is envisioned is not a vehicle to undermine or challenge judgments by regulators on appropriate prudential regulation. The goal is to make those judgments work in practice on a cross-border basis between the two largest financial markets in the world and to ensure a vibrant, safe and sound transatlantic financial marketplace.”

“We believe that the framework outlined would allow regulators to recognize the important differences between the two markets while committing to work together for forward-looking cross-border solutions, rather than relying on remedial discussions after the fact,” it says. “The resulting improved coherence would enhance the efficiency of cross-border regulations to the benefit of market participants, their customers and regulators.”