The CFTC and SEC (the "agencies") agreed to an updated Memorandum of Understanding ("MOU") to enhance regulatory coordination and facilitate information exchanges and data sharing for areas of common regulatory interest. In particular, the MOU addresses coordination on swap and security-based swap regulation.
The MOU outlines expectations for:
- meetings between the agencies regarding regulatory issues;
- developing arrangements for coordination and cooperation;
- exchanging examination and supervisory information on entities registered with both agencies;
- providing advance notification on issues that may affect either agency; and
- general data sharing.
The new MOU updates a 2008 MOU between the agencies.
The MOU will become effective on the date of its signing by SEC Chair Jay Clayton and CFTC Chair J. Christopher Giancarlo, and will remain effective unless otherwise terminated by either agency.
Commentary / Nihal Patel
The MOU is the kind of arrangement that one would expect from two agencies of the same government. It does not, however, provide any color as to how exactly the agencies intend to coordinate their rules for swap and security-based swap regulation, something that Mr. Clayton and Mr. Giancarlo have repeatedly indicated is a priority.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
