09.07.2016

Two Mexican Regulators Sign MOU with U.S. CFTC

09.07.2016

(This article first appeared in Financial Magnates)

The Comisión Nacional Bancaria y de Valores (CNBV) and the Banco de México (BDM) have entered into a memorandum of understanding with the U.S. Commodity Futures Trading Commission (CFTC). The MoU is designed to promote the cooperation and exchange of information with regard to entities operating on a cross-border basis between the United States and Mexico.

Established in 1995, Mexico’s CNBV is a decentralized entity of the country’s finance ministry, tasked with maintaining and promoting the stability of the financial system. The regulator supervises and regulates all financial institutions including banks, non-bank finance companies, brokerage houses and mutual fund companies, among others.

The MoU sets out the co-operation arrangements between the authorities and allows information sharing with respect to central counterparties, trade repositories and other market participants that are, or have applied to be, authorized or otherwise overseen by one of the signatories to the MOU.

Earlier in June, the US watchdog and the European Securities and Markets Authority (ESMA) signed another MOU regarding cooperation to facilitate ESMA’s recognition of U.S. derivatives clearing organizations (DCOs) as central counterparties (CCPs). The Memorandum of Understanding follows in the wake of the adoption of the European commission’s implementation decision on March 15, 2016.

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