The EU and US together account for the bulk of international capital flows. Levels of portfolio investment, mergers and acquisitions as well as foreign direct investment (the EU and US have around €500 billion invested in each other) underline the degree to which the two economies are integrated. Similarly, the US and EU are predominant in many aspects of securities transactions and banking flows. European and US firms compete extensively in each other’s markets. They are also customers of and providers of services to each other and are therefore strong proponents of transatlantic regulatory convergence and the avoidance of overlapping or conflicting regulatory frameworks. High profile debates over legislation and policy with potential extra-territorial impact have implications for trillions of euro of transatlantic business and international investment decisions. Given the importance of global capital markets to the two economies, transatlantic leadership on financial issues is central to their economic interests. In recognition of this, EU and US authorities have stepped up efforts to ensure regulatory dialogue. The financial industry on both sides of the Atlantic support these initiatives and believes they can deliver long term benefits to companies, consumers and the wider economy.