The big four Canadian securities regulators have signed a memorandum of understanding (MOU) with U.S. derivatives regulators that aims to enhance the cross-border supervision of firms that operate in both countries.
The U.S. Commodity Futures Trading Commission (CFTC) has entered into an MOU with the regulators of Ontario, Quebec, British Columbia and Alberta, which aims to facilitate cooperation and the exchange of information between the regulators for the supervision and oversight of firms that operate on a cross-border basis. The deal extends to markets and organized trading platforms, central counterparties, trade repositories, and intermediaries, dealers, and other market participants.
The regulators indicate that the agreement is intended to “express their willingness to cooperate in the interest of fulfilling their respective regulatory mandates regarding derivatives markets and/or securities markets particularly in the areas of: protecting investors and customers; fostering the integrity of and maintaining confidence in financial markets; and reducing systemic risk.”
The deal was signed by acting chairman for the CFTC, Mark Wetjen, Ontario Securities Commission chairman Howard Wetston, Louis Morisset for the Autorité des marchés financiers, the Alberta Securities Commission’s Bill Rice, and Brenda Leong of the B.C. Securities Commission.