Abstract
International financial markets are supervised primarily by national authorities. However, national authorities are inherently incapable to regulate and supervise seamless globalised financial markets. To the extent international regulators exist, they constitute a disorderly patchwork of institutions. A proposal is made to create a system of regulators and supervisors under the umbrella of the World Financial Organisation. The WFO would encompass existing institutions and enhances international supervision through mandatory co-operation. The WFO streamlines supervisory activities, prevents overlap and lacunae, creates hierarchy and allocates responsibilities. The WFO would exercise its authority both over states and non-state actors, i.e. financial markets.