Featured Product

    BoE and CFTC Strengthen Supervisory Cooperation in Derivatives Markets

    October 20, 2020

    CFTC and BoE signed an updated Memorandum of Understanding (MoU) regarding cooperation and the exchange of information in the supervision and oversight of clearing organizations that operate on a cross-border basis in the US and the UK. Through this MoU, CFTC and BoE expressed their willingness to cooperate in the interest of fulfilling their respective regulatory mandates, particularly in preserving the benefits of cross-border clearing activity. The CFTC Chair (Heath P. Tarbert) and the BoE Deputy Governor for Financial Stability (Jon Cunliffe) published a joint op-ed article in Risk.net. In this article, they outline the details of the agreement and discuss the framework for regulating the global derivatives markets.

    The op-ed article highlights that the long-lasting significance of regulatory reforms was seen when the COVID-19 pandemic sent shockwaves through the world’s financial markets earlier this year. The agreement entrenches these key principles: the central counterparty’s home country is the primary supervisor; the supervision of central counterparties that operate in both the US and UK is based on close co-operation and mutual respect; and the home authority will take the lead in any response in emergency situations. Both US and UK agree that cross-border infrastructure needs to be held to appropriately high standards. To support safe and efficient global markets, the regulation and supervision of such infrastructure needs to maintain the highest levels of resilience, commensurate with the risks. Also, any conflicting or overlapping regimes need to be avoided, which is why this regulator relationship needs to be founded on the right degree of deference to home supervisors.

    The MoU strengthens the relationship between the regulators responsible for resilience of the largest and most important derivatives markets and central counterparties in the world. The supervision of central counterparties that operate in both US and UK is based on close cooperation and mutual respect for each regulator’s regime and supervisory practices. The MoU recognized the history of cooperation between CFTC and BoE and encouraged supervisory coordination and reliance upon the other authority’s supervision and regulatory framework. The MoU supersedes a 2009 agreement and follows a 2019 joint statement by the CFTC, BoE, and other UK authorities on continuity of derivatives trading and clearing post-Brexit. 

     

    Related Link: BoE News Release

     

    Keywords: Europe, Americas, UK, US, Banking, MoU, CCPs, Derivatives, Cross Border Cooperation, CFTC, BoE

    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514