U.S. Securities and Exchange Commission and National Futures Association sign information sharing pact on examinations and emerging risks

The U.S. Securities and Exchange Commission and the National Futures Association have entered into a memorandum of understanding to formalize cooperation, coordination and information sharing in areas of common regulatory interest. In practical terms, the arrangement is designed to improve joint oversight of firms and markets that sit across securities and derivatives regulation by supporting exchanges on emerging risks, examination planning, examination findings, supervisory priorities and market conditions, while aiming to reduce duplicative oversight. Under the framework, staff may share information on examinations of SEC-supervised and NFA-supervised entities, as well as assessments of securities and derivatives market conditions that could affect those firms. The MOU also provides for periodic staff meetings and ongoing ad hoc communication, but leaves each party to decide independently which entities to examine, how to conduct examinations and what findings to make. It is expressly non-binding, preserves each party's enforcement authority and independence, and sets confidentiality and information-security terms for non-public information, including limits on onward disclosure and safeguards aligned with federal standards. The MOU took effect on signing and remains in force unless either party gives 30 days' written notice of termination. The parties may also review its operation periodically and revise it by agreement.