AUSTRALIAN share traders will be allowed to set up shop in the US under a radical financial regulations agreement between the two countries announced on Saturday.
A world-first pilot program has been endorsed under which the highly complex and restrictive rules governing financial and stock market trading is to be mutually recognised, allowing Australian share traders to establish business in the lucrative US trading markets raising new capital and increasing liquidity.
It is understood the deal, finalised during Prime Minister Kevin Rudd's current visit to the US, is the first time the US has given another country such a favoured position despite strong campaigning for a similar deal by Europe over a number of years.
In an address to the American Australian Association in the Rainbow Room, one of the city's most exclusive venues because of its unparalleled 360 degree views of Manhattan, Mr Rudd said the program would be established "by year's end".
The arrangement would "enhance capital flows between the two economies" which was "a global first", he said.
It is understood the new arrangements have been designed to allow Australian share traders to buy and sell Australian stocks in the US.
This would allow access to more competition, increased investment capital into Australia and increased liquid money flowing through Australian equity markets.
In an upbeat performance before the high-powered gathering of both Australian and American business people, Mr Rudd outlined his government's economic philosophy and response to troubled economic times.
"I remain an unapologetic optimist about Australia's long-term economic future," he told them.
"In the face of the challenge of the financial crisis, governments have to choose to hold firm, keep their nerve, and stay the course on policies that will promote stability for the present and continue to reform the economy in future."
Earlier, perhaps reflecting a different view of race relations as a result of the American experience, the crowd broke into spontaneous applause when he mentioned the apology to stolen generations and his attempts to bring in a fresh start.
Slightly taken aback at that moment, Mr Rudd paused before saying indigenous people would thank them for that.
