MEMORANDUM OF UNDERSTANDING 

United States Commodity Futures Trading 

Commission 

~ R ESE RVE BANK O F AUSTRALIA 

Reserve Bank of Australia 

• ASIC 

~t an Securit ies & lm·,·stmen ts M nm i s:> i on 

Australian Securities and Investments 

Commission 

COOPERATION AND THE EXCHANGE OF INFORMATION 

RELATED TO THE SUPERVISION OF CROSS-BORDER CLEARING ORGANIZATIONS 

5 June 2014 
MEMORANDUM OF.UNDERSTANDING CONCE~ING COOPERATION 

AN.QTHKE.XCHANGE OF INFORMATION RELA,TED TO THE SUPERVISION 

OF CROSS-BORDER Cl'"EARIN.G ORGANJZATIONS · 

1n vi~w Mthe fti ~wing globalization 8f'tl1e worid''s fi~aiicial in'arkets anq the increase in crossbordet ~'p6i ~tiorl~ knd activities ofi·e1

g'ulated eiiHtiet th'e United S'tatis Ct)Jrirriodity Futures Trading 

Commission and the Reserve :Baiik: of Austraiia: ;and Austrai:Ian Secudties' and Investments 

Commission (collectively, the "Authorities") have re_ached this Men1orandvm of Understal)ding 

("MOU") t:e·gardirig c6o~erattoti and'th~ exch~nge of1nf6i·mahSil:in tHe 'superv1s:i6ri ail.d oversight 

of clea!lng organi~afiohs' that 'operate ori: 'l:t'-cross-bordei' basi's 'in both ih~ United States''and 

Australia. The Authorities express, through this MOU, theit' willlhgness to cooperate with each 

other in the interest of fulfilling their respective regulatory mandates. \ , • • • • .., • • • ,1 : • ' • • 

ARTICLE ONE: DEFINITIONS 

For purposes of this MOU: 

1. "Authority" means: . . 

a. In the United States, the Commodity Fl!ture~ Trading Co~issioq. ("CFTC"); and 

b. In Australia, the Reserve Bank of Australia ("RBA") or the Australian Securities and 

Investments Commi~sion ("ASIC") (iridl:vidually, an "Australian Authority!', and 

together refetTed to as the 'Australian Authorities'') . . . _; \ 

2. "Requesting Authmity" means the Authority making a request under this MOU. ;, 

3. "Requested Authority" means: 

a. The Australian Authmity·to which a request is ,made-under this MOU, _where the 

Requesting Autho~·ity is the CFTC; ·01: ·· . ' · · · . 

b. The CFTC, where the Requesting Authmity is an Australian Authority:· 

4. "Laws and Regulations"_. meanS: .the. don.;ii10dity ]3xchange Act (''CEA"), Dodd-Frank 

Wall Street Refonn and ·consu'm:er'.Protection Act, CFTC regulations, and other 

applicable legal or regulatory requitenients in the United States, and the Corporations 

Act 2001 (Cth) ("CA"), Atisti·ali'an SecuiitieS. and Investments Comi11is'sion Act 2001, 

, . R~st(rve Bai).k Act 19~9, A~IC rul s, RBA instrumc:nts, and regulations;: and_ other 

applicable legal or regulatory requirements in A,ustraFa. · 

5. "Pe1'son" 1means·. a ·natural pei·s6ri, ~nin~orpo't ated association, pa1inership, ttust, 

investment company, or corporation, and may be a Clearing Member, Cleating 

Patiicipant, or Covered Clearing Organization. 

6. "Covered Clearing Organization" mean~ ~ 'centi·af ~ounterpatiy organized in either tile 

Unit~d States or Australia that satisfies both of the following criteria: • : , "' • , • : • ·~ 0 • ! I ' i 

. . : : , i . . • ..~ - ., ' 
··._.-· 

) . 

a. A derivatives clea'ting organization ("DCO;')-that is, or that has applied to be, 

. i·egistered as such or that has been granted, or'that has 'applied for; an exemption 

from regis.tration rinde'r the' CBA; and · ' . 

b. A d~mestiq or ?yerse~s cJear~ng af!-d ~ettleme~t (',' C_S)Jacf~iW. tha~ i~s, m; tha~ h~~ ... . . appl~eq to b_e, ltfetp~ . or ~x~ITl~~ed: ft?m _the, h9 ~n~!ngrequ!JeT-9n~~ :u~d9~ ~h~. CA . 

, }nd !Jl~L~erye~ or.y-:;.ill ~ery<?. a~ sen~r~l ~p~nt~rpatt.Y· .,.. . ..• ; .: .. · , .. , .. , . 

• • • • •• J • ' • ... .... \ ',- . ; • • • · - . : • • ' •• 1 ~ ' • • . • . • . - • . . , . . ~ ' ' • 

7,. "¢l~aring ¥~~p~~··: .. n1~aQ~ .a in~rnbet: qf, a Coyei ~d; Gje~ting Qt:gani,iation that also . · · • - ' · , · •, . . ~ , . . .. I . · J • , , I - . , . . _ , · • .f ·- . . • ; . . , . 

. , ~erves a~ a,n illt~rwxsH an, tlu:oygl?, 'k'hi¢h l?~rket. pai1j.cipants acces ~ tlie Covered 

· pemi.ng oi gani~atioxi~s services~ . · . · · · · · · · . . . . . . . ' ' · · . 

8. "Clearing Participant~; ~e~ns a pmiicipant of a Covered Clearing Org~~ization that' does 

not serve as an intermediary, but trades and clears only for its own account as principal. 

9. "Books and Records" means documents, electronic ~e~li ~, ~ndb.ooks and 1:ecords ~ithin the possession, custody, and control of, and other infonnation about, a Covered Cleating 

Organization. 

10. "Emergency Situation" means the occurrence of an event' that could materially impair 

the financial· or' operational condition of a·Covered Cleating Organization. 

I. .: • \-

11. "On-Site Visit" me~ns any regulato~y visit as describ.~d in Atiicle Five to the premises of 

a Covered Clearing Organization for tbe.pl}-rposes of ongqing supervision and oversight 

including the inspection of Books and Records. 

' . . 12. "Local Authority" means the Authority in whose jurisdiction a Covered Clearing 

Organization that is the subject of an On-Site Visit ~s physically loc11ted. 

13. "Visiting Autfior!ty"'fueans the Aulhdrity c_oriductirig an On'-Site Visit. .- - ' . . . " . 

14. "Govetn:mentaJ Entity or Third Authptity" me,;ms: · · 

a. The V·~·. J?epartment ofth~ Treasury or the U.S. Board of Governors of the Federal 

· '· · . Reset've System, if tHe Requestillg Authority·is'the CFTC; -· · · . • • . • ~ • ~ • • ,· i ; ' • • ~ • 

,b. Tht;: A].Jstralian Depa11tr1-e,nt 9fth,~ Tre,~sury otJhe Australian Pmdential Regulation 

Authority, _if t4~ Req]J,esting Authority iey ,the .. R,BA or ASIC; 

· · Any Minister. assigned 't\e·sponsibilhy for ASIC' s •functions, if the Reqi.1esting 

Authority is the ASIC; and' ' · : · '• 

d. Ally Minister assigned respom)~bility,for RBA's functions, if the Requesting 

·.Authority is the ~A. . · . . ,, · ,, · ' ·· 

,. . .. 

ARTI~ltE TWO: G~NERAL PROVISHJN~ l f ' 

15. This MOU is:a statement ofintent.to con ult, co6p~rate, and exchange information in 

connection with each of the Authmities' respective functions relating to Covered 

2 
1 · 

Clearing Organizations. The cooperation and information sharing mnngements under 

this MOU will be interpreted and im:plemerited in a manner' and to the extent that is 

permitted by, and consistent with; the laws·and requirements that govern each Authority. 

With respect to cooperation pursuant to this MOU, at the date this mnngement is 

executed, each Authority believes that no domestic secrecy or blocking laws_ or · 

regulations should prevent it from providing assistance to any other Authority. The 

Authorities-anticipate that coopei·ation primari-ly will be: achieved tlu·ough ongoing 

informal consultations, supplemented as neeqed by more fonnal.cooperation. The 

provisions of this MOU are intended to support both infonnaLconsultations:and formal 

cooperation, as.well as to facilita.te the w~i.tfen e)\change O~l).qn-publicinfon;nation in ac~ordai1ce with applicabl~ iaws . . · .. ,., ,. . . ' . (. . . : ·. '.· . '',· . ' ' . . 

16. This MOI..fdoes not create any legally binding· obligations, confer any ti.ghts, or modify 

or supersede domestic laws or regulations. This MOU'does·not'confet' upon any Person 

the Ii.ght or ability directly or indirectly to. obtain, S\)ppres~, or exGlud~ a,!ly information 

or to challenge the execution of a request foi· assis.tance under this MOU. · 

17. This MOP i~ not intended. to limit or con~~t~o~ ~he1 discretion.of a~ Authority in any way 

in the discharge of its regulatory responsibjli~ies or to prejud,ice the individual 

responsibilities or autonomy of any Authority. This.MOU does not limit an· Authority to 

taking, sol~ly tho~e measure,s descli.bed hen;in in fulfil~rnen.t of its supervisoty functions 

or preclude Authmi.ties from shali.ng infm'!llatiof\ or poCl,liiJ.ents with respect to Persons 

that are not Covered Clearing Organizations,.Clearing Members, or Ciearing Participants 

but rriay be subject to regulatory requirements in the United States and i'n Australia. In 

·. · particulai·, this MOU does not affect any li.ght of any Autholi.ty to communicate with, 

conduct an On-Si~e Visit <;Jf, or obtaininforfi?.ation or, documents frqm any Person subject 

to ~ts jmi.sqiction t,h~t is phys,ically located. in theteqi.tmy:of another Authority. 

... . . _. 

18. This MOU is intended to complement, but does not alter except where explicitly noted, 

the following existing arrange~ettt's : .· · ·' ·· · · ·: · · .. ( 

a. The Memorandum of Understandi11gbetween the Conunod.ity Futures Trading 

Commission and the Australian Securities Commission Concerning Consultation and 

Cooperation in the Administration and Enforcement. of futures Laws (October .19, 

1994). · --· . . . .. . -

b. The IOSCO Mziltilateral Memotclndw1t ofUnder'standtng Concerning Consultation 

: ·an~! Cooperatio~ and the E~ch'cinge oflnfon;wtimi (revised ·May 2012) ("IOSCO 

MMOU") to which the CFTC and ASIC ate sigriatories, which covers primarily 

, informa~ion sharing in the contex,t of e,nfm:cement matters .. 

. ' c. The Declai-ation oit Cooperttti~1i :and Su]Je'rvisioii of International Futures Markets 

and Clearing Organizatioi1s (as amended March 1998), to ·which the CFTC and 

A~IC are signatorie~.. _ .· 

. . ,, . .. . ,. :. 19. J;o facilitate cooperation under .thi,s MOU., the AuthoJi.ties hereby designate contact 

persons ~s _set.forth ,in )\.ppendix f\, which m~y be a11!e':lde_d from time to time by an 

: 1 Au~ority transmitting revis~d. <;ontacJ inform~tion in writing to the other Authorities . 

• , . ,-. l • r: .. . . i 
ARTICLE THREE: SCOPKOF SUPERVISORY CONSULTATION, · 

COOPERATION AND EXCHANGE OF INFORMATION · , 

' I . :I ! : ' '·'·, , · • 1 '· . 

General ~ • ; ~!) I. ·' f ' f ·, ' • I • 

; I , ,. --. . • , .". • ~ I ' • I ' _; : 1!: .:·: 

. 20. The A.uthcitities .. -i·ecognize the impmtance of otose conunul!ication concerning their 

. . , supervision.of Covered Clearinig :Organizations and intend to consult regularly, as 

,. , . · ·," appropriate; reg'arding•:.; .. :,.,.; ~;' •:·:·., · ' .:. , ' ·· · 

· · ·': l 1 Geil :~ supei gdi'y' htel' iii Ci~din eglilato~y _ :oversight, or othe~· ·related 

developments; · . 

· b. · I.ssuesrelevant to the operations, activities, and r!')gulation of Covered Clearing 

, . , , , , OrganizatiQns; and · 

. c. A'ny' other ai'eas of nihtual supei.Yisory interest. . ' ' . . ; . . - .· . ·: ' 

21, The Authorities recognize in, pmiicular the impmiance of close cooperation in the event 

. that a Covered Cl'eiu:ing Org mizati~ri experiences, or is .thi·eatened tiy; a potential 

finandal c'i-is'is' br othet: Eme~ genc Situ ~tion. · 

· 22. Cooperation will be most lisefi.il in, but is not limited to, the following. circumstances 

. v;h~te issues of c'oinmon reguiatory concen1 may arise: : •" ) ; . ~ ' ~:- • ·: • ·. _,-! . . . .: . • . ': • l i . - . 

, : ,,,•t I 

a. The initial applicati9n for registration ,or licensure,. · exemption th~r~from, by a 

.. Co ~red Clearing Organi:;;>";ation that is l!censed or registered in the other jurisdiction; 

··b. The· ongoing' supervision ahd oVet'sight of a· Covered Clearing Organization 

induding, for- example; comiilia:n:c·e with "applicable statutory and regulatmy 

requirements in either jurisdiction or with international standards; and • , • •. .· . • ' I ' l'f .. . .' ' . 

c. Regulatory'or supervisory actions or approvals taken in relation to. a Covered 

Clearing Organization that may impa~t 'the '~p~rations. of the entity in the jmisdiction 

of the other Authm:ity or Authotities: 1 • · 

·: ' \ , 

Ev:erit-T~igget ed Notification · 

, , 23 i As approptiate_.in the particl).lar circum~tan~es _ the CFTC and ea~h Australian Authority 

·. , _ .. ,·. ·endeavors t~ ixiforn~, t;espect~ ~ly, tb,(f Aust~ ~l ian Authoriti(;!S or the CFTC promptly, and 

· ,,,:. ,)¥here,practica,ble in ~d.vance, of: . ;c.. , . :·,· ~· ·. · 

a. Pending regulatory changes tbatmay have·a;sighifidnt impact ori the operations, 

activities, orreputat~qnof fl Covered Clearing Organizatio,n,including those that may 

affect the mlvs or proceqq~ es .of aCoyered Cleating _Organization; 

b. Any material event of which the Authority is aware that could adversely impact the 

financial or operational stability of a Covered Cleating Organization including such 

.· events as a default or potential defauft 6f a Clearing Member or'.Cleariri.g P~t't icipant; 

\. 

market or settlement bank difficultie's that hiight a'dversely impact the Covered 

Cleating Organii ation; failm:e by' a Covered Clearing Organization to 'satisfy any of 

its requirements for continued registration, licensure, or exemption where that failure 

4 
• .' ',' ! 

could have a material adverse effect in the other jurisdiction; or any !mown adyerse 

material change in the ownership, operating environment, operations, financial 

·_:-resources, management, or systems and controls of a.Covered Clearing Organization; ; . · ., ·• \ :,c t , ' , · • , • •'. . ·• •· , ·. . • t . .: . {. ' 1 ; , i • 

c.: The status of effoits'ofwhich-the Authmity is awm:e-to· addr~ss any material event 

. . I ·: . . that cot{Id adversely :i;npact thi;(finaneia'l 'oi' operati6n~t'cdndi'tion of a Covered 

Clearing Organization, Clearing Member, or Clearing Pmticipant; a~d .. ' 

d: Enforcement ·a:ctidris · o1' sa~cti~ri~ 6/siwifi~ant 1·eg~lrit~N a6tion~; inCluding the 

revocation, suspension ~ 'ofmocHfication cif-~ e!~v~rih!cert~u& or :regishation, or 

. - exemption thereft'om; conceming.a:.-C.overed ClearinglOrganization:· .': _.-, 

,/' .! . . •.. : · 

. 24. The determination ofwhat cpnstitutes "significant,iropli!ct", "materi.al_event", "adversely 

. . impact", "diffi-culties", "material adverse effect"; "adverse mat¥rial change", or 

"significant regulatmy actions" for purposes of Paragraph 23 shail be left to the 

reasonable discretion of the relevant Authority that detennines to notify the other 

Authority. 

25. Paragraphs 23 and 24 shall :hot preclude the Authcnities fi'om entei·ing i~to any futther 

anangements relating to no~ification regarding specific financial 9r .operational issues 

related to a Covered Clearing Organization. 

Request-Based Information Sharing 

-~· . .. 26. To the extent appropriate to supplement informal consultations, upon written request, the 

Requested Authority intends to provide the Requesting ,Authority with the fullest 

possible cooperati<:m .subject to the term& in this MOU .in assisting the Requesting 

Authority's exercise of-its functiop.s .r.elating to .a Cove1:ecl. Cleming Organization, 

including assistance in obtaining and interpreting info1mation that.is relevant to ensuring 

compliance with the Laws and Rdgrtlations of the Requesting: Authority and that is not 

othetwise available to·the Requesting Autho1ity. Such requests shall be made pursuant 

to Aliicle Four of this MOU, and the Aut}lorities anticipate that Sl}Ch requests will be 

made in a manner that is consistent'\vith' the goal of ininimiziii.g adffi'inistrative burdens. , ' r_ 

2_7. The information covered PY Paragrap~1 26 inc~udes: I' ~ • . • . 

a. Info1mation relevant to the financial and operational condition: of a Covered Cleating 

Organization including, for example, financial resources, 1isk management, and 

internalcontrolprocedul'es;' ·; .· · · ,; ·· - ·:· ·· ' · !. 

b. ~elevant regulatoryinformat~on .and filingstj:lat. a Covered Clearing Organization is 

req1,1ired to submit to apAutho1:ity including,' fm~ example, intei·im arid arinual 

_finandal state~ents ·and event spe.dfic 11otiCes; and I . 

• · c · _, c. . Regulatory repmts prepared by an Authority-including, for example, examination 

· repo1ts; findings, or information contained in such repmts regarding Covered 

·- Clearing Organizations. 
. Periodic Meetings . 

· 28. Representatives of the Authorities intend to meet periodically, as appropriate, to update 

each other on, their respective functt~m ~ and reg~l~t~ry oversight programs and to discuss 

issues of comlnon ;intei.'est relating t~ the._s\lp¢'rvi~ion 9.f cbvered Cl eai ~?g Oi·ganizations, induqii1~: ' · · · ·' '· · ·. · .. , · .. ' ' ·. ·· '· · ·· ·· · . ; ~ .: .. ·~ :n ~~:: ' . . , ::· 

a . . Assessment ofrj~ks affecting Covered C~eming Organizations' clearing.services or 

: ·. sy~t~ffis s~ibje~~ to' the. Au~l).o~W~s: sup~r~i~icni;.. , :. · ... ·• ··: . .. . ,. •' ' :• , } l · , ~, i' ·. : • '·' ' · , ~ ·. ' . , .' .• • · • • ' + , . I J , • · '' , • l ' , \ : I} •. I • .. t, ' 

b. Material an~ subr;:;tantive developments to Covered .Clearing Organizations' 

provision of clearing services; 

c. Complia~ce with CFTC; Aust~·alian, and il).tematiob.al standards f01:· clearin'g. services 

or ~ystems; · . · .· ' ... ' ' { ' 

· d .. . Contipgency planning and crisis manag~ment; . 

e. Default procedures; and 

f. Enhanc:ement of cooperation and coordination among the Authorities. t I .. · . , 1 , . ··• 

Such meetings may be conducted hy conference call oi· on ·a face-to-face basis, as 

appropriate. ! · 

. {. • t 

ARTICLE FOUR: EXECUTION OF REQUESTS FOR INFORMATION 

; . . .. il 

29. To the extent' possible, a request foi· information pursuant to 'ArtiCle Three should be 

rri.ade 1n writing (which may be transmitted electronically), and addressed to the relevant 

contact person in Appendix'· A. A i·~qtiesf:generally should specify the following: 

a. Th~ i~f~nn~tion so{ig}lt by thi Req~estin~ ~~th~rity; 

·. .b. A gener'al description of the matter that: is the. subject of the request; 

. c .. 'The .purpose for which the infOI:matidn is sought; ~md r • ' ; 1 • : • ~ ' • ' ' • 

d. The desired time period for reply and, where appropriate, the urgency thereof. 

Information provided by a·Reques'ted Authority in r~sp6nse· to the i·equest, as ~ell as any 

.'·• subsequent conununication among Authorities, may be: transmitted. electronically. Any 

, electronic transmission should use. means. that Are app~·opriately se<;:ure in light of the 

confidentiality of the information being transmitted-:. . ; .. 

. ' .' : 30.' In a~ Eme.i:gency Situatio~, the ',:FTc ~nd.,th~ ~~ele~ant Australia~ Authoiity or 

· Authorities will endeavor to notify the other( s) of the Emergency Siruation and 

communicate informati~n as appropriate iri. the pmi.icular circumstances, taking into 

-account all relevant factors, including the status of eff01is to address the' Emergency 

; ·. Situation. Dming an Emergency Situatiowrequests for information may be made in any 

f01m, including orally, provided such communication is confirmed in writing as 

promptly as possible following such notification . 

. ·6 
ARTICLE FIVE: ON-SITE VISITS 

It 

. ; 

J I. In fulfilling its supervision and oversight responsibilities iJursuant to; and to ensure 

compliance With, Laws and Regillations;·an Authority may need to conduct On-Site 

' . , ·' IT . Visits t6: a Covered Clearirtg Orgahization·physically located in the jurisdiction of the 

.. ·:.· _, .. · btner'Authoi:i(y: The-Authoiities·will c:;onstilt and.workcollaboratively in.conducting an 

On-Site Visit. ' .. : .. . . · .i' 

·32. An Oti~SiteVisit by· an Authority will be COliducted: in accordance .with the' following 

procedure: ,· ·: · ·, -,·· .... . ,; .. ·; · ,·, .·.,::• .. :• = ,•. : . · ~- .. ·_: , , ; , , · . . : 

a. The :Visiting Authority intends to p1'ovide ad~anc~ n~ti ce t'o the Local Authority of 

its intent to conduct' an On-Site Visit' ~nd ti1e 'intended time fniin~ for~ and the '' I . , - . . . ' . . . 

.. pui-pose and scope of, the On-Site Visit. Other than in eX:ceptiorialcircumstances, 

the Visiting Authority'willnotify the Local Authority prib'r to riotifying the Covered 

Clearing Organization. . ' · 

b. The Local Authority will endeavor to share any relevant reports, or information 

contained therein, related to examinations it may.have unde1tak; n of the Covered 

Clearing Organization. 

c. The Authmities intend to assist each other regarding On"Site Visits,' including 

providing infmmation that the Visiting Authm ity may re'que.st and thai·is available 

p1ior to the On-Site Visit; cooperating and consulting in reviewing, interpreting, and 

analyzing the contents of public and non-public Books and Records; and obtaining 

infmmation from directors and serupr management of a Covered Cleming 

Organization. ·. ~ ' · · · · ' · · " · , ' · · 

d. The Authorities will consult with each other, .and the. Local Authority may in its 

. discretion accomp~ny or assist the Yisi~ing Aut~ority d~ ring the On-Site Visit, or the 

Authorities may conduct joint On-~ite· Visits wh~re appropri_ate.. . 

.· ,.' ~ ' . ..··· 

ARTICLE SI;K: PERMISSIBLE USES.OF I:['lFQRMATION 

' • • . ,• ' ., ' ( , ;' I J 

33. The Requesting Authority may ~se IJ.On7public information obtained under this MOU 

solely for the purposes ~f sup el ~i~i~n ~nd over~ight ~f Cov~red Cleaiing Organizations 

· pursuant to, and to ensure cqmpliance with, the Laws and Regulations of the Requesting Authority. . . . l .·. - . . . . . . , .. . . . . . 

34. The A~thori~ie~ recogniz~ h~t, while. th.is MOU is not int.ended to enable the Authmities 

to gather information f01: enforcement pilq:Joses ~ the Authorities subsequently may want 

.to use the non-public infmmatiqn providc;d pursuant to thi~ MOU for enforcement 

purposes. With re~pect .to information shm:ed between the .CFTC and ASIC, use of nonpttblic information for enforc.emen:t purposes will be in. accordance with the terms and 

conditions in Paragraph 1 0 of the IOSCO MMOU ;: With spect to information shared 

betweenthe CFTC and RBA, Paragraph 35 applies to such use . ... . . 

... 

.·. 7 
35. Before using non-public infmmation fumished under this MOU for any purpose other 

than that stated in Paragraph 33 and, for the CFTC and ASIC, Paragraph 34, the 

1 Requesting Authority must first consult with and obtain the ;wtitten consent, of the 

Requested Authority for the •intended use. n; consent is denit::d by. the. RNu<;<sted 

Authority, the Authorities will.copsultto discuss the:reasons-for withholding approval of 

· such use and the· circumstances; ·if any, under which _the .intended \lseby ·tlw Requesting 

Authority might be allowed. . ,:' 

· %!If an Authority. ('~eceivi'ng Authmity")'receives;· :vi1:t ::1 .party that _is: notr a signatory to 

this MOU, non-public infmmation originally provided by another At~thority, 

• 1 • ("Di.sclosing Autpority") that is related to the Disclosing Authority's supervision and 

' : · ovel:sight of a Covered qeal1ng Orgrinization a~1d that the Receiving Authority is aware 

. . ~i<obtained by the tl~ird party from the Discl6s~ng Authority on a confidential basis, the 

·· ReQeiving Authqri,ty will use and treat the information in accordance with the terms of ·.this MOU. ··' " . : . · . . · . . · 

37: The restrictions irt this A1iicle Six do not apply to an Authmity's use of infmmation it 

obtains-directly from·a Covered Clearing Organization, whether duting an On-Site Visit 

or othe1wise. However, where non-public information is provided to the Requesting 

~\lthqr~~y pursuant to an information-sharing request pursuant toA1ticle Four of this 

.. .,.. MQU, .tiie restric.tions in this MOU apply to the use of the inforlnationby that 

Req~esting Authority. 

ARTICLE SEVEN: CONFIDENTIALITY OF iNFORMATION AND ONWARD SHARING 

\· 

38. Except as provided in Paragraphs 39;'40;41, 42, or 43, each Authotity will keep 

confidential;· to' the extent p~nhitted by law, non-public infmmati'On shared under this 

MOU, requests niade under this :Mou, the contents of such requests, and any other 

matters arising under this MOU. 

39. Each Australian Authoi1ty ni..ay shai·e hoil.-public:-infmmation obtained frdm the CFTC 

under this MOU with the other Australian Authority so long as that other Australian 

·Authority uses and treats the ·infoi'fiiation irt accoi·dance with the tetms of this MOU. ; .J " I ' . ~ .1 • ", 

.. : : • • I 40. As required. by law, it'maybecom~ hecessai·y for a Requesting Authority to share nonpublic information obtained under this MOU with a Govemmental Entity oi· Third 

Authority in its jurisdiction. In these circumstances and to the extent permitted by law: • • ' . • \ I 

a. The Req~esting Auth9rity, i~tepds 'to ~~tif'~ the R~q~ested Authorlty; .and .· . • . • ' • . . h. 

b. Ptior to the Requesting Authoiity· sharing the· nori.Jpublic infmmation,· the Requesting 

Authority witl provide adequate ias·sm'ances to the· Requested Authority conceming 

the Governmental Entity or Third Authority's use and·confidential treatment of the 

' ,. · :. · · infoi'mation, including, a:s necbsary, assurances that: •:' . '. ti, . . . . . '• . ' . 

1. The Governmental Entity or Third Authority has confirmed that' it requires 

the infonnation for a purpose within the scope of its jmisdiction; and 
u. The information will not be shared by the Govemmental Entity or Third 

Authority with other parties without getting the prior written consent of the 

Requested Authority. 

41. In the. context of the RBA's powers an&obligations under theCA to assess Covered 

Clearing Organisations· that are, or that have applied to be;' licensed CS facilities against 

the fiminCial stability standards that it sets and to·report the outcome of those 

assessments to the ASIC and the relevant Minister oi· Ministers; a:nd its practice to 

publish each assessment as petmitted bythe'CA;·tne :RBA will: ' · ' 

a. Comply with the requirements of Paragraphs 39 and 40 witl). respect to the sharing 

with ASIC or any Minister of non-public infoimation obtained under this MOU; 

· b. Consult with the CFTC about publication of any asse·ssment of a Covered Clearing 

Organization registered with or exempted from registration by the CFTC as a DCO 

that includes non-public infmmation provided by the CFTC; and 

c. Not publish any report of a review or examination, or the results thet:eof, by the 

CFTC of a Covered Clearing Organization registered with or exempted from 

registration by the CFTC as a DCO. 

The reshictions in Paragraph 41 do not apply to publication or other disclosure of 

infmmation that the RBA obtains directly from a Covered Clealing Organization. 

42. Except as provided in Paragraphs 40, 41, or 43, the Requesting Authority must obtain 

the prior written consent from the Requested Authority before shming non-public 

infmmation received under this MOU with any noncsignatory to this MOU. The 

Requested Authority will take into account the level of urgency of the request and 

respond in a timely manner. During an Emergency Situation, consent may be obtained 

in any form, including orally, provided such communication is confirmed in wtiting as 

promptly as possible following such notification. If consent is denied by the Requested 

Authority, the Requesting and Requested Authmities will consult to discuss the reasons 

for withholding approval of such disclosure and the circumstances, if any, under which 

the intended disclosure by the Requesting Authority might be allowed. 

43. To the extent possible, the Requesting Authority intends to notify the Requested 

Authmity of any legally enforce!'lble demand for non-public infom1ation fumished under 

this MOU. When complying with the demand, the Requesting Authority inte11ds to 

asselt all appropriate legal· exemptions ·or plivileges with respect to such infmmation as 

may be available. 

44. The Authmities intend that the shming or disclosure of non-public information, 

including deliberative and consultative matelials, such as written analysis, opinions, or 

recommendations relating to non-pu~l~c information that is prepared by or on behalf of 

an Authmity, pursuant to the terms of this MOU, will not constitute a waiver of privilege 

or confidentiality of such information. 

9 
;·· 

ARTICLE EIGHT: AMENDMENTS 

45. The. Authorities •will. periodically review the .functionitig and·effectiveness of.the·: 

_,<;' oop raHon, ~rr~ngements between the CJ:iTC and. the RB.A,.. find/or ASIC wjth a vi w, 

. inte1~ alia, to exp,andipg, or alte~'ing t4e. scop~ or opera\iOJ}, .oHJ~e a~Tatigern nts should 

_, tl~at be judged ccssary. This MOl,T may be amended wilh:the,written yons~ntof ll of 

tlie Authcirit!~s ~:eterr ~ _tq .. in ra\~~~aph ) (. . ,., . :: .. . I!' .. ' ' . . . : : . 

46. Cooperation, in ccord nce with this MOU will be.come effective on the date this MOU 

. i? sign d by .all of the Autl:orities. 

ARTICLE TEN: T.EE.MINATION • I 

47. C~operatio~ in accordance vvith this MOU,,will pontinue u~til the expiration of30 days 

after any Authority gives written notice to the other Authorities of its intention to 

terminate the MOU. If one Australian Authority terminates this MOU, the MOU shall 

· _re.tp.ain effective between th~ CFTC and the remaining Australian Authority. If an 

Authority gives notice of termination, the relevant parties will consult conceming the 

disposition of any !?ending requysts. Ifan agreement cannot be re~tched throl.)gh 

consult~tion, cooper~tion wiil continue with respect to all requests for assistance 

involving a te1minating Authority that wer~ made under this MOU before the expiration 

df the 3 0-day period until ali sriCJj requests are fulfilled or the Requesting Authority 

withdraws such:reque'st(s) fm: assistill1ce. In the ev nt oftern1ination of this MOU, 

infmmation obtained tindedhis.MOU will coritihue to be tre·ated in the manner 

described under.Aiticles SiX: and Seven. 

1 • ,· ;1 ' .. ! ' ' j· . 

. . . This M()u is "" "'':d ~~:piw,;,, ihi; or ~;y f cr ~ 2014 

"') -:> • - _.~·;.· . q l ) . _.. . ·, .,: .:~ ".·z·.>/.. . - . , \JL~ J;-t_.~..i .: ... 

,. l'vh\l Weij~n · ( · ' · · ;. ' ··.: Mi1l.colni Edey ',l' '.. . , ·. , 

Actmg,Chmrman .. · Asststant Governor (f•manc1al Systems (Ji'oup) 

U.~ . {;;qJPI1)odity ,futures .Trading Con'\P1i:;sion: Re e~;ve Bank of ~ustralia 

:=. I 

.... L/~~ Greg Mcdcraft ·· · · . 

, : . 

· chairman ·• · 

Ai.Jstralian Securities mid Investments Commission . ., 

10 
APPENDIX A 

CONTACT PERSONS 

In addition to the following contact il!f'ormation, the Cfi'TC a/IC/tlie RBA and ASIC will exchange . 

conjidcmtial emergency contact telephone information. ·· . · q .• ·• . .. . . • ·: • . • 

CFTC 

Ananda Radbakrishnan 

Director, Division of Clearing and Risk 

Commodity Futures Trading Commission 

1155 21st Street, N. W. 

Washington, DC 2058 I 

Phone: l-202-418-5188 

Fax: 1-202-418-5547 

Email: aradhakrishnan@cfic.gov 

Alternate Contacts: 

Phyllis Dietz 

Deputy Director, Clearing Policy, Division of Clearing and Risk 

Commodity futures Trading Commission 

1155 21st Street, N_W. 

Washington, DC 2058 l 

Phqne: 1-202-418-5449 

Fax: 1-202-418-5547 

Email: pdictz@cilc.gov 

.Julie A. !'v!ohr 

Deputy Director, Examinations 

Division of Clearing and Risk 

Commodity Futures Trading Commi~sion 

525 W. Momo...: Street, Suite 1100 

Chicago, IL 60661 

Phone: 1-312-596-0568 

Fax.: l-312-596-0713 

Email: jmohr@cftc.gov 

RBA 

Sarah Harris 

Senior Manager, Payments Policy Depattment 

Reserve Bank of Australia 

65 Martin Place 

·_, . 

11 

,· : 

. ' 

·. ~ .. .. • ' ~ ' I ; 

.• 1 • 

,,'J 

·' 

I , '.· . 

' ' · I : : .• I 
Sydney NSW 2000 

Australia 

Phone: 61-2-9551-8703 

Email: harrissa@rba. gov. au 

Alternate Contact: 

Mark Manning 

Deputy Head, Payments Policy Department 

Reserve Bank of Australia 

65 Martin Place 

Sydney NSW 2000 

Australia 

Phone: 61-2-9551-8704 

Email: manningm@rba.gov.au 

ASIC 

Steven Bardy 

Senior Executive Specialist, Intemational Strategy 

Australian Secmities and Investments Commission 

100 Market Street 

Sydney NSW 2000 

Australia 

Phone: 61-2-9911-5246 

Fax: 61-2-9911-2634 

Email: steven.bardy@asic.gov.au 

Altemate Contact: 

Oliver Harvey 

Senior Executive Leader, Financial Market Infastructure 

Australian Securities and Investments Commission 

100 Market Street Sydney 

NSW 2000Australia 

Phone: 61-2-9911-2363 

Fax: 61-2-9911-2414 

Email: oliver.harvey@asic.gov.au 

12