SEC and NFA sign accord to streamline US regulatory oversight
US Securities and Exchange Commission and National Futures Association formalise cooperation framework to improve coordination on derivatives and securities laws.
The US Securities and Exchange Commission (SEC) and the National Futures Association (NFA) have entered into a Memorandum of Understanding (MOU) to strengthen regulatory coordination and information sharing. The agreement targets areas of common interest, specifically derivatives and securities laws, aiming to streamline cooperation, reduce duplicative oversight, and enhance the sharing of data on emerging risks and examination planning.
Under the terms of the MOU, staff from both organisations will share information on emerging risks, examination planning, and financial market conditions. The framework also establishes periodic meetings between SEC and NFA personnel to facilitate ongoing dialogue and alignment on regulatory priorities.
SEC Chairman Paul S. Atkins described the agreement as a measure to streamline cooperation and alleviate the potential for duplicative or conflicting oversight. He emphasised that regulatory bodies working together should be the norm, providing businesses with a predictable path to compliance and comprehensive protections for investors.
NFA President and CEO Thomas W. Sexton stated that the memorandum represents an important milestone for the NFA’s mission of protecting customers and ensuring market integrity. He noted that the formal framework would allow the association to continue its coordination efforts with the SEC effectively.
The improved coordination is designed to further enhance the ability of both bodies to promote compliance with relevant laws and maintain the highest level of oversight quality. The move signals a continued push towards harmonised regulatory practices within the US financial sector.
