ECB and SEC Sign Memorandum for Security-Based Swap Entities
The European Central Bank (ECB) and the U.S. Securities and Exchange Commission (SEC) signed a memorandum of understanding (MoU) to prepare for the registration of ECB-supervised entities as security-based swap dealers or major security-based swap participants in the U.S. The cooperation will provide a basis for relevant euro area entities to minimize duplication of compliance efforts and to continue focusing on compliance with EU requirements, while ensuring compliance with U.S. requirements. The U.S. regulation requires non-US security-based swap dealers and major security-based swap participants with significant business in the U.S. to register with the SEC by November 01, 2021 and December 01, 2021, respectively.
This memorandum is a statement of intent to consult, cooperate, and exchange information in connection with the supervision, enforcement, and oversight of covered firms and their covered activities in a manner that is permitted by, and consistent with, the laws and requirements that govern each authority. The authorities anticipate that cooperation primarily will be achieved through ongoing consultations and exchanges of information related to covered firms with respect to their covered activities, supplemented by formal cooperation. The provisions of this memorandum are intended to support informal and ongoing consultations and request-based cooperation, and to facilitate the written exchange of non-public information in accordance with the applicable laws. A primary goal of this memorandum is to foster cooperation and the exchange of information between the authorities to benefit the supervision and oversight of the covered firms.
With respect to cooperation pursuant to this memorandum, at the date this memorandum is executed, no bank secrecy, blocking laws, or other regulations or legal barriers, should prevent an authority from providing assistance to the other Authority pursuant to this memorandum, or otherwise adversely affect or hinder the operation of this memorandum. Cooperation in accordance with this memorandum will become effective on the date this memorandum is signed by both authorities. Either authority may terminate this memorandum by delivering written notice to the other authority of its intention to terminate. An authority that delivers such a notice may withdraw it by written notice to the other authority delivered not more than 30 days after delivery of the termination notice.
Related Links
Keywords: Europe, Americas, EU, US, Banking, Security Based Swaps, MoU, Swaps, Derivatives, International Cooperation, ECB
Previous Article
Bundesbank Publishes Reporting Updates in August 2021Related Articles
APRA Issues Interim Update to Policy Priorities for 2021 and Beyond
In a letter addressed to the industry, the Australian Prudential Regulation Authority (APRA) set out an updated schedule of policy priorities for the banking, insurance, and superannuation industries.
EC Adopts Solvency II and Resolution Rules Package for Insurers
The European Commission (EC) adopted a comprehensive review package of Solvency II rules in the European Union.
OCC Issues Booklets on Regulatory Reporting and Earnings
The Office of the Comptroller of the Currency (OCC) issued Versions 1.0 of the "Earnings" and "Regulatory Reporting" booklets of the Comptroller's Handbook.
ECB Sets Out Results of Economy-Wide Climate Stress Tests
The European Central Bank (ECB) published results of its economy-wide climate stress test, which aimed to assess the resilience of non-financial corporates and euro area banks to climate risks.
EBA Examines Implications of Increasing Use of Digital Platforms in EU
The European Banking Authority (EBA) published a report on the use of digital platforms in the banking and payments sector in European Union.
HKMA Issues Updates on Policy Measures Intended to Ease COVID Impact
The Hong Kong Monetary Authority (HKMA) published updates on the policy measures that were announced in context of the ongoing pandemic.
ISDA Responds to BCBS Proposal on Treatment of Cryptoasset Exposures
The International Swaps and Derivatives Association (ISDA), along with several other associations, submitted a joint response to the Basel Committee on Banking Supervision (BCBS) consultation on preliminary proposals for the prudential treatment of cryptoasset exposures.
BIS Quarterly Review Discusses Developments in Fintech and ESG Space
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
BCBS to Consult on Supervisory Practices for Climate Risks by Year-End
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
OCC Identifies Operational Risk Deficiencies in MUFG Union Bank
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.
