US markets regulator the Securities and Exchange Commission and futures self-regulatory organization the National Futures Association announced on Thursday that they have signed a Memorandum of Understanding to formalize cooperation, information sharing, and exam coordination across overlapping regulatory territory.
The MOU covers staff-level communication on emerging risks, examination planning, and financial market conditions. It also establishes periodic meetings between the two organizations’ teams. The SEC said the framework is designed to promote compliance with derivatives and securities laws while minimizing duplicative efforts.
“Coordination between regulatory organizations provides businesses a predictable, straightforward path to compliance and comprehensive protections for investors that build trust in our markets,” said SEC Chairman Paul S. Atkins. “This memorandum is another step in furthering the SEC’s efforts to streamline cooperation with other regulatory organizations and alleviate the potential for duplicative or conflicting oversight.”
NFA President and CEO Thomas W. Sexton said the agreement is “an important milestone” that will help the NFA pursue its mission of protecting customers and ensuring market integrity.
The announcement follows remarks earlier this month from CFTC Chairman Michael S. Selig, who said the financial ecosystem is “increasingly convergent” and that SRO coordination is essential where securities and derivatives jurisdictions overlap.
