Closer transatlantic financial market dialogue – at the level of politicians, regulators and industry – has already yielded good results in terms of damage control, “dispute resolution” and prevention. Dialogue must now move towards policy coordination and market integration. The latter promises substantial benefits in the shape of lower transaction costs, higher liquidity and less home bias. The guiding principle for market integration should be a progressive convergence of rules sufficient to secure adequate equivalence. On the part of the US, this means giving ground on some issues where they are perceived as being “extraterritorial” and making progress on accounting standards; on the part of the EU, the EU must understand that recognition of equivalence will only be acceptable for the US provided the EU can guarantee consistent and high supervisory quality for all 25 member states. While it is true that the faster and deeper the EU’s financial market integration, the greater its credibility as a unified regulatory market, if that process of integration reduces the prospect of regulatory convergence between US and EU rules, it will reduce commensurately the prospect of a simpler and more coherent framework of regulation that can be held in common between the US and the EU.