CFTC and SEC sign MoU on enhanced cooperation

11 March 2008

The CFTC and the SEC signed mutual cooperation agreement for a closer working relationship between their agencies. The agencies also announced their immediate plans to consider two new derivative products under the agreement.

 

The agreement establishes a permanent regulatory liaison between the agencies, provides for enhanced information sharing, and sets forth several key principles guiding their consideration of novel financial products that may reflect elements of both securities and commodity futures or options.

 

Under the principles governing the review of novel derivative products, the agencies agree to recognize their mutual regulatory interests and encourage innovation, competition, and legal certainty. Additionally, the agencies commit to share information relating to novel derivative products and act on any related requests in a timely manner. Finally, the agencies agree to endeavor, for products that implicate overlapping areas of regulatory concern, to permit such novel derivative products to trade in either or both a CFTC- or SEC-regulated environment, in a manner consistent with their respective laws and regulations.

 

Press release

Memorandum of Understanding

Opening Remarks of Acting Chairman Walter Lukken

Statement of Commissioner Jill Sommers

Statement of Commissioner Bart Chilton

 

 

 

© Graham Bishop