As the growth in the internationalization of the securities markets increases, so too does the need to clarify the jurisdictional tests used by U.S. courts in applying domestic securities laws extraterritorially. Although the Federal courts have explored the issues presented to them and advanced their respective interpretations of inadequate statutory language, Congress must provide the courts with more definitive guidance. This article proposes an expansive standard to be used by the Securities and Exchange Commission (SEC), with a more restrictive standard to be used in private causes of action. This "two-tiered" approach gives the SEC the necessary latitude to enforce the Federal antifraud provisions of the Securities Exchange Act of 1934 and also ensures that the private plaintiff who has been injured in a case of transnational securities fraud has recourse in the appropriate jurisdiction. the restrictive approach for private suits would lessen the likelihood that "frivolous" suits would be brought. Appended relevant sections of the Securities Fraud Provisions Act and 227 footnotes