The CFTC and the BOE sign a new MOU for the supervision of Cross-Border Clearing Organizations

On Tuesday 20 October 2020, the Commodity Futures Trading Commission (CFTC) and the Bank of England (BoE) announced that an updated Memorandum of Understanding (MoU) has been signed between the two regulators concerning the “Cooperation and the exchange of information related to the supervision of cross-border clearing organizations”.

The MoU aims to further strengthen the relationship between the regulators who are responsible for resilience of the largest and most significant derivatives markets and central counterparties (CCPs) globally. Both regulators have expressed, through the MOU; their willingness to further align and cooperate in order to fulfill their respective regulatory mandates which is primarily for the preservation of the beneficial cross-border clearing activities which are vital to the markets.

Stated within the MOU, it is mentioned: “The Authorities also are mindful of carrying forward the steps they have taken within their respective jurisdictions to implement regulations that reflect reforms to over-the-counter derivatives markets agreed by G20 Leaders at the September 2009 Pittsburgh Summit and upholding fundamental principles for supervisory cooperation and deference, including those set out in the internationally agreed Principles for Financial Market Infrastructures and in the G20 Leaders’ declaration at the September 2013 St. Petersburg Summit.”

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