CFTC and ESMA sign second MOU on derivatives clearinghouse recognition
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CFTC and ESMA sign second MOU on derivatives clearinghouse recognition 11 January 2021US Reporter: Natalie Turner
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The Commodity Futures Trading Commission (CFTC) and the European Securities and Markets Authority (ESMA) are building on their cooperation regarding the exchange of information with registered US derivatives clearinghouses.
The two market regulators last week signed a new Memorandum of Understanding (MOU) to facilitate cross-border supervision of US central counterparties (CCP) licenced by ESMA under Article 25 of the European Market Infrastructure Regulation (EMIR).
Article 25 of EMIR requires the establishment of cooperation arrangements as a precondition for ESMA to recognise US CCPs to provide clearing services to members or trading venues established in the EU.
The agreement builds upon an MOU signed by the regulators in 2016 related to recognition of CCPs.
In a joint statement, the regulators say the MOU reflects their commitment to strengthening their mutual cooperative relationship, which is under the leadership of ESMA chair Steven Maijoor and chairman CFTC chair Heath Tarbert.
Suyash Paliwal, director of the CFTC’s office of international affairs, states: “We look forward to building upon our strong relationship with ESMA and embarking upon a cooperative relationship with ESMA’s new CCP Supervisory Committee.
“The deferential approach embodied in this MOU is a major milestone in the years-long engagement between the CFTC and its EU counterparts on the implementation of EMIR as amended.”
Chair of ESMA’s CCP supervisory committee Klaus Löber adds: “I am pleased to see ESMA entering a phase of closer cooperation with the CFTC.
“This MOU sets out the basis for the enhanced collaboration between our institutions and is an important step towards building the risk-based and outcome-focused supervision of CCPs in accordance with the amended EMIR.”
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