First, it operates at different levels: conduct of business, micro-prudential and macroprudential. In some cases, a single competent authority may have responsibility for regulation at all levels. In other cases, responsibilities may be given to a number of distinct authorities. Whatever the regulatory architecture, there are challenges of managing conflicts of purpose and coordinating agendas.
Second, financial regulation has effects at a local level, national level and international level. A common approach to regulation is needed for it to be effective. Restrictions on shortselling, high frequency trading or large bonuses may or may not make sense, but in any case they make very little sense within the confines of a single jurisdiction.