CFTC and Monetary Authority of Singapore Sign MOU on Cross-Border Swaps Dealers (with Lofchie Comment)
The CFTC and the Monetary Authority of Singapore ("MAS") signed a Memorandum of Understanding ("MOU") regarding cooperation and the exchange of information in the supervision and oversight of regulated entities that operate on a cross-border basis in the United States and Singapore.
According to the CFTC, the MOU states the willingness of the CFTC and the MAS to cooperate with each other in the interest of fulfilling their respective regulatory mandates regarding derivatives markets. The scope of the MOU includes markets and organized trading platforms, central counterparties, trade repositories, and intermediaries, dealers, and other market participants.
The MOU was signed by Commission Chairman Gary Gensler and MAS Deputy Managing Director, Financial Supervision, Ong Chong Tee.
Lofchie Comment:The MOU gives the authorities in Singapore a promise of assistance in obtaining information as to U.S. dealers doing business in Singapore. Likewise, the MOU gives the CFTC a promise of assistance in obtaining information as to Singapore dealers doing business in the United States. Upon closer inspection, there should be more consideration as to whether the United States is giving much more than it is getting.That said, here are a few key points of the MOU: Paragraph 14: "[The CFTC and the MAS] anticipate that cooperation primarily will be achieved through ongoing informal consultations . . ."Paragraph 15: "This MOU does not create any legally binding obligations. . . "Paragraph 29: [The CFTC or the MAS] "may need to conduct On-Site Visits" to a swap dealer located in the other jurisdiction. "Each Authority [the CFTC or the MAS] will consult and work collaboratively with the other Authority in conducting an On-Site Visit."Paragraph 30(c) "The Authorities [the CFTC or the MAS] intend to assist each other regarding On-Site Visits, including . . . obtaining information from directors and senior management of" a swap dealer located in the other's jurisdiction.
See: MOU Between CFTC and MAS.