Securities and Exchange Commission (SEC) Chairman Mary Schapiro provided testimony to the U.S. Senate Committee on Banking, Housing, and Urban Affairs related to the government agency's adoption of certain derivatives regulation contained in the Dodd-Frank Act.

The government official provided information on the SEC's progress in implementing Title VII of the financial industry regulations, according to Forbes. Schapiro noted that the globalization of OTC derivatives use has resulted in challenges in regulating trades of the financial instruments.

The official said in her remarks that "application of Title VII to cross-border transactions raises a substantial number of complex issues. Among other things, it requires consideration and appreciation of foreign regulatory frameworks and of competition concerns. This is not an easy task."

Schapiro stated that instead of addressing these challenges country-to-country, the SEC wishes to utilize a more comprehensive approach, the media outlet reports. Schapiro stated that the regulatory agency wants to present a proposal that addresses these concerns in a holistic manner. She said that the publication of such a document was meant to provide market participants a chance to evaluate the proposed solution of the SEC.