CFTC Chairman, Heath P. Tarbert, and BoE Deputy Governor for Financial Stability, Jon Cunliffe, published a joint op-ed for Risk.net outlining the agreement.
The MoU strengthens the relationship between the regulators responsible for the resilience of the largest and most important derivatives markets and central counterparties (CCPs) in the world. The supervision of CCPs that operate in both the United States and the United Kingdom is based upon close cooperation and mutual respect for each regulator’s regime and supervisory practices. Through the MOU, the CFTC and the BoE express their willingness to cooperate in the interest of fulfilling their respective regulatory mandates, particularly in preserving the benefits of cross-border clearing activity. The MOU also recognizes the history of cooperation between the CFTC and BoE and encourages supervisory coordination and reliance upon the other authority’s supervision and regulatory framework.
The MOU supersedes a 2009 agreement and follows a 2019 joint statement by the CFTC, BoE, and other UK authorities on continuity of derivatives trading and clearing post-Brexit.