The Commodity Futures Trading Commission and the Federal Energy Regulatory Commission have released a “Memorandum of Understanding” (MOU) detailing their agreement to share market data between one another.
The MOU was put in place in early January, and the CFTC and FERC began more freely transmitting market data to one another just last week.
As it turns out, getting the two regulators to share market data has been a long time coming, with the need for an agreement being first discussed over three years ago.
The MOU will ensure that market data needed by either regulator will be quickly and easily shared between them. Previously, requests for market data had be placed and reviewed on a case-specific basis.
The announcement of a more free flowing form of data sharing between the regulators was announced on March 5th, along with an Interagency Surveillance and Data Analytics Working Group that will coordinate the sharing of data and help focus on, among other things, data security and data sharing infrastructure.
The sharing of data between the CFTC and the FERC marks progress, and should certainly help to create a safer and more transparent market.