SEC and ECB sign agreement on supervision of security-based swap dealers
17 August 2021 EU
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The Securities and Exchange Commission, the US securities market regulator, has signed a memorandum of understanding (MoU) with the European Central Bank to cooperate and exchange information relating to swap transactions.
This will facilitate supervision of security-based swap dealers and major swap participants that are registered with the SEC and supervised by the ECB.
Specifically, the MoU, which was signed on 16 August, will strengthen the SEC’s oversight of SEC-registered security-based swap entities with activities in EU member states that are participating in the Single Supervisory Mechanism (SSM).
The SSM provides a framework for banking supervision in the EU and includes the ECB and national competent authorities of participating EU member states.
This agreement will also facilitate the SEC’s oversight of substituted compliance orders that it has issued in France and Germany, as well as further substituted compliance orders that it may issue in other EU member states that are part of the SSM.
These orders, issued by the SEC, enable SEC-registered swap entities to comply with US requirements detailed under Article VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd Frank Act’) through compliance with comparable EU (and EU member states) laws.
This is the first MoU to be signed between the SEC and the ECB.
This will facilitate supervision of security-based swap dealers and major swap participants that are registered with the SEC and supervised by the ECB.
Specifically, the MoU, which was signed on 16 August, will strengthen the SEC’s oversight of SEC-registered security-based swap entities with activities in EU member states that are participating in the Single Supervisory Mechanism (SSM).
The SSM provides a framework for banking supervision in the EU and includes the ECB and national competent authorities of participating EU member states.
This agreement will also facilitate the SEC’s oversight of substituted compliance orders that it has issued in France and Germany, as well as further substituted compliance orders that it may issue in other EU member states that are part of the SSM.
These orders, issued by the SEC, enable SEC-registered swap entities to comply with US requirements detailed under Article VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd Frank Act’) through compliance with comparable EU (and EU member states) laws.
This is the first MoU to be signed between the SEC and the ECB.
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