CFTC and SEC Update 2008 Swaps MOU for Cohesion and Efficiency
Latest press release from the CFTC and the SEC shows how far the two regulatory agencies have come to a cohesive approach to market regulation where their respective jurisdictions might overlap. This updated Memorandum of Understanding promises cooperation between the two regulators for efficiency. Both agencies especially benefit from information sharing for swaps and other interrelated markets such as cryptocurrency and ICOs. Full press release below,
FOR IMMEDIATE RELEASE
Washington D.C., June 28, 2018 —The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) announced today that the two agencies have approved a Memorandum of Understanding (MOU) that will help ensure continued coordination and information sharing between the two agencies.
The MOU updates and enhances a 2008 MOU to make it more relevant in the current market environment and promote efficiency in rulemaking, regulatory oversight, and enforcement. For example, the new MOU specifically addresses the regulatory regime for swaps and security-based swaps.
“Today’s interrelated markets demand that the SEC and CFTC work together to provide a coherent and coordinated approach to regulation, said SEC Chairman Jay Clayton. “This MOU confirms our agencies’ commitment to working together as partners with distinct missions—all to the benefit of investors, as well as other market participants.”
“Chairman Clayton and I identified these rules and regulations as an area where coordination would enhance our effectiveness,” said CFTC Chairman Christopher Giancarlo. “Simply put, greater harmonization of our Title VII rules will enhance our oversight efforts and reduce unnecessary complexity, and lessen costs on both regulators and market participants. This MOU strengthens our joint regulatory response, streamlines our partnership and makes information sharing more seamless and effective.”
The agencies anticipate that they will continue to cooperate primarily through ongoing informal consultations and meetings.