The leading public pension funds of the United States, including the California State Teachers' Retirement System and the California Public Employees' Retirement System, have announced a set of market regulation reform principles aimed at restoring trust and confidence in the global capital markets.

The "Principles of Financial Regulation Reform: A Model for Change" is a set a five financial regulation principles developed in response to the unprecedented instability of worldwide markets.

The key elements of the principles are:

• Greater disclosure and transparency
• True regulatory independence
• An increased and effective shareowner voice in the capital markets
• Earlier identification by regulators of issues that give rise to overall market risk that threaten global markets
• The preservation of institutional investors’ freedom to invest in the full range of investment opportunities