SEC, CFTC Release Memorandum of Understanding Between Agencies
On March 11, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) announced a Memorandum of Understanding (MOU) on harmonization that will “guide coordination and collaboration between the two agencies to support lawful innovation, uphold market integrity, and promote investor and customer protection.” The agreement notes that the agencies will foster a closer relationship through regular meetings, data sharing, cross training of appropriate staff, and ongoing notifications to inform the other agency in advance of issues that may impact the regulatory interests under their common jurisdictions. According to a joint fact sheet, specific areas of focus include:
- Clarifying product definitions through joint interpretations and rulemakings.
- Modernizing clearing, margin, and collateral frameworks.
- Reducing frictions for dually registered exchanges, trading venues, and intermediaries.
- Providing a fit-for-purpose regulatory framework for crypto assets.
- Streamlining regulatory reporting for trade data, funds, and intermediaries.
- Coordinating cross-market examinations, economic analyses, risk monitoring, surveillance, and enforcement.
In remarks delivered one day prior to the release of the MOU, SEC Chair Paul Atkins stated, “Properly executed, harmonization furthers our statutory mission through a commitment to coherence across markets that increasingly function as an integrated whole. We certainly can do better – and we shall do better.”
Click here to read the Memorandum of Understanding.
Click here to read a fact sheet covering the Memorandum of Understanding.
Click here to read the SEC press release.
Click here to read the CFTC press release.
Click here to read SEC Chair Atkins’ remarks on regulatory harmony between the SEC and CFTC.