MOUs

UK and US Authorities Release Statement on Post-Brexit Continuity of Derivatives Trading and Clearing

Posted on

 

On February 25, the Bank of England (BoE), the Financial Conduct Authority (FCA) and the US Commodity Futures Trading Commission (CFTC) published a joint statement detailing the measures that will be taken to ensure the continuity of UK-US derivatives trading and clearing activities after Brexit.

The measures address:

UK equivalence for the US: UK authorities have confirmed that US trading venues, firms and central counterparties (CCPs) will be able to continue providing services in the UK. The basis on which these trading venues, firms and CCPs currently provide services in the EU and to EU firms is as a result of various decisions taken by the European Commission in declaring the CFTC regulatory framework equivalent.

Continued supervisory co-operation: The FCA and CFTC will update their memorandums of understanding (MoUs) covering certain firms in the derivatives and the alternative investment fund industry. The BoE and CFTC will update their MoU covering clearing activity, in connection with the UK’s forthcoming recognition of CFTC-registered CCPs.

Extension of existing CFTC relief and comparability for the UK: The CFTC intends that existing regulatory relief granted by the CFTC to EU firms, including UK firms, will be extended to UK firms when the UK leaves the EU.

ESMA Publishes Statement on No-Deal Brexit Contingency Plans of CRAs and Trade Repositories

Posted on

 

ESMA published a statement on the contingency plans of credit rating agencies (“CRAs“) and trade repositories (“TRs“) in the context of Brexit (ESMA80-187-149) on November 9.

ESMA has published the statement to raise market participants’ awareness of the readiness of CRAs and TRs for the possibility of there being a no-deal Brexit. ESMA states that entities using services provided by CRAs and TRs need to consider the scenario of a no-deal Brexit and the consequences of TRs and CRAs established in the UK losing their EU registration when the UK leaves the EU. READ MORE →

SEC Oversight Cooperation Arrangements with Foreign Regulators

Posted on

On March 23, the SEC issued two memoranda of understanding (“MOUs”), agreed to with each of the Cayman Islands Monetary Authority (“CIMA”) and the European Securities Markets Authority (“ESMA”) as part of its long-term strategy to improve the oversight of regulated cross-border entities. The memoranda seek to foster better information sharing among the regulators about investment advisers, investment fund managers, broker-dealers and credit rating agencies. SEC Release. EMSA MOU. CIMA MOU.