The Commodity Futures Trading Commission (CFTC) and the U.S. Department of Agriculture (USDA) announced a memorandum of understanding (MOU) to expand information sharing, coordinate policies and improve access to agricultural hedging tools. Data exchanges will support monitoring for structural and potential systemic risks. The agreement is intended to replace existing arrangements between the agencies, including those covering data access and risk management education. The agencies will explore gaps in crop insurance and futures markets to identify opportunities to improve agricultural risk coverage. They will also work with prudential regulators to facilitate clearing access and streamline capital requirements. Potential gaps in agricultural risk management tools were discussed with USDA representatives at the CFTC’s Agricultural Advisory Committee in July. A senior coordination process will support data exchanges and consultation on developments affecting shared regulatory interests. Confidential information may inform examinations, enforcement and rulemaking, with advance notice generally required before its use in enforcement investigations, proceedings or civil actions. The MOU creates no legally binding obligations, preserves each agency’s statutory authority and leaves information sharing discretionary.
CFTC and USDA sign agreement on agricultural market data sharing and access to hedging tools
The Commodity Futures Trading Commission and the U.S. Department of Agriculture signed an agreement to coordinate agricultural market policies and share data to identify risks. Cooperation will address gaps in agricultural hedging coverage and seek better access to clearing, including work with prudential regulators on capital requirements. The arrangement is nonbinding and leaves information sharing discretionary.