The Ontario Securities Commission (OSC) entered a memorandum of understanding (MoU) with Germany’s regulatory agency known as BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) and the country’s central bank, Deutsche Bundesbank, to provide regulatory co-operation in the supervision and oversight of clearing agencies that as central counterparties (CCPs).
The agreement establishes a framework for consultation, co-operation and information-sharing between the OSC, BaFin, and the Bundesbank, for the day-to-day oversight of CCPs. The OSC says that the arrangement enhances its ability to supervise these sorts of entities.
The agreement points to the “growing globalization of the world’s financial markets” and the ensuing increase in cross-border activity as the underlying reasons for entering the deal.