United States Commodity Futures 

Trading Commission 

Commissione Nazionale per le Societa 

e la Borsa 

COOPERATION AND THE EXCI IANGE OF INFORMATION 

RELATED TO THE SUPERVISION OF COVERED FIRMS 

November 25, 2020 
MEMORANDUM OF UNDERSTANDING CONCERNING COOPERATION 

AND THE EXCHANGE OF INFORMATION 

RELATED TO THE SUPERVISION OF COVERED FIRMS 

In view of the growing globalization of the world's financial markets and the increase in crossborder operations and activities of regulated entities, the United States Commodity Futures Trading 

Commission and the Commissione Nazionale per le Soc ieta e la Borsa (together, the .. Authorities") 

have reached this Memorandum of Understanding ("I\ 10U'') regarding cooperation and the 

exchange of information in the supervision and oversight of regulated firms that operate on a crossborder basis in hoth the United States and Italy. The Authorities express, through this MOU, their 

willingness to cooperate with each other in the interest of fulfilling their respective regu latory 

mandates in the context of supervisi ng firms within the scope of this MOU, particularly in the areas 

of: protecting customers; fostering the integrity of and maintaining confidence in financial markets; 

and reducing systemic risk. 

ARTICLE ONE: DEFINITIONS 

For purposes of this MOU: 

I. ··Authority•· means: 

a. In the United States, the Commodity rutures Trading Commission ( .. CFTC"); or 

b. In Italy, the Commissione Nazionale per le Socict.i e la Borsa ("CONSOl3''). 

2. "Requesting Authority" means an Authority mal-.ing a request under this MOU. 

3. •·Requested Authority" me:ins the Authority to whom a request is made under this MOU. 

4 ... Covered Firm'' means an entity or a natural person physically located in either the United 

States or Italy that is 1101 covered by the MoU concerning C()l/,\'/lltatio11, c"operation a11d the 

exchange,?[ i1!for111atio11 related to the s11perl'isio11 ,?( col'ered entities in the alternative 

i11vest111e11t.f11nd i11d11stry between the CFTC and CON SOB (.luly 22, 20 13) ("Covered Funds 

MOU'') and that satisfies the following criteria: 

a. A swap dealer. major swap participant. futures commission merchant, commodity pool 

operator, commodity trading advisor, introducing broker. or retail foreign exchange dealer 

that is. or that has applied 10 be, registered as such under the Commodity Exchange Act 

( .. CEA•·); and 

b. An entity or a natural person authorized, or that has applied to be authori7ed, to provide 

investment services or activities in Italy according 10 Legislative Oecree no. SR/1998 

("Consolidated Law on Financi:il Intermediation'·). 

5. ''Covered Mailers·• means all derivatives-related activities and conduct of a Covered Finn that 

are governed by Laws :ind Regulations. 
6. ··L:1ws and Regulations·· means: 

a. f-or the CFTC. the CEA. Dodd-Frank \\'all Street Reform and Consumer Protection Act. 

CFTC' regulations. and other aprlicablc legal or regulatory n:quircrncnts in the United 

States: and 

h. For CONSOL3. the Consolidated Lim on Financial Intermediation. Consob regulations and 

other applicable lt::gal or regulatory requirements in Italy. including Regulation (EU) No. 

600/2014. 

7. ··Person .. means a natural person. unincorporated ussociation. partnership. trust. investment 

company. or corporation. and nm) be a Covered Firm. 

8. --Books and Records·· means docurnl!nls. electronic media, and hooks and records within the 

possession. custody, or control of. and other information about. a Covered Firm. 

9. ··On-Site Visit" means any regulatory visit 10 the premises or n Covenxl firm for the purposes 

or ongoing supcn ision and oversight in relntion to its Covered Mailers. including the 

insrection of Books and Records. 

I 0. --Local Authority"· means the Authority in whose jurisdiction a Covered I· irrn that is the subject 

or an On-Site Visit is physically locHted. 

I I. ·•Visiting Authority .. means the Authority c.:onducting ~111 On-Site Visit. 

12. --Emergency Situation•· means the occurrence or imminent occurrence of an event that could 

materially impair the linancial or operational condition or a Covered Firm. 

13. ··Governmental Entity .. means: 

n. If the Requesting Authority is the CFTC. the U.S. [)cpanment or the Treasury or the U.S. 

Board or Governors ofthi..: Federal Reserve System: and 

b. If the Requesting Authorit) is CONSOB. the Ministero dcll'Ecunomia e dclle Fina,11:e 

(Ministry of Econorn~ and Finance) or llanca d" Italia (Central Hank or Ital)). 

ARTICLE TWO: GENERAL PROVISIO S 

14. This rvlOU is a statement of'intent to consu lt. coopcralc. and c:-.changc information in 

connection with the supcrvision and oversight or Covered 1-irms with respect to their Covered 

l\,1o11ers. Th.:: cooperation and information shari ng arrangeml!nts under this MOll should be 

interpreted and implcmc111cd in a mnnner that is pl.'!rr11i11ed by. and consistent "i1h. thc lega l 

rcquiremems applicable to each Authority. With respect lo cooperation pursuant 10 this MOU. 

the Authorities hclil!vc that no secrecy or blocking laws (II' regulations should prevent an 

Authority from providing assistance to the other Authority. rl1e Authorities anticipate thnt 

cooperation primHril) will be achieved through ongoing informal consultations. supplemented 

as needed by more formal cooperation. including through mutunl assistance in obtaining 

information related to Covered Firms\\ ith respect 10 their Covered Matters. l'hc provisions of 
this MOU arc intended to support both informal consultations and formal cooperation. as well 

as to facilitate the written exchange of non-public information in accordance with applicable 

laws. 

15. This MOU docs not create any legally binding obligations. confer any rights. or supersede 

domestic or European Union legislation. This l'vlOU docs not confer upon any Person the right 

or ability directly or indirectly to obtain. suppress, or exc lude any information or to challenge 

the execution or a request for assistance under this MOU. 

16. This MOU is nol intended to limit or condition the discretion oran Authority in any way in the 

discharge of its regulatory responsibilities or to prejudice the individual responsibilities or 

autonomy of any Authority. This MOU docs not limit an Authority to laking solely those 

measures described herein in fulfillment or its functions or preclude Authorities from sharing 

inlormation or documents with respect to Persons that ..ire not Covered Firms but may be 

subject to regulatory requirements in the Uni11.:d States and in Italy. In particular. this MOU 

docs not affect any right of any Authority to communicate with, conduct an On-Site Visit of 

(subject to the procedures described in Article Five), or obtain information or documents from 

any Person subject to its jurisdiction that is physically located in the jurisdiction of another 

Authority. 

17. This MOU is intended to complement but docs not alter the terms and conditions of existing 

arrangements. including the Covered Funds MOU and: 

a. The Jille111ora11d11111 of li11de1:vtandi11p, on Co11s11ltatio11 and Mutual Assistance for the 

Exchrmge of h?formmion between the CFTC and CONSOB (.lune 22, 1995); 

b. The Declaration 011 Cooperation and Supervision r~/'/111ematio11al Futures Markets and 

Clearing Organi=atio11s (as amended March 1998), to which the CFTC and CONSOB are 

signatories: 

c. The Exc:hange u.f Letters (relating to the listi ng or equity-based futures contacts) between 

the CFTC and CONSOB (April 5, 2000): 

d. The S11pple111e11tal Me111orwul11111 r!f U11dersto11di11g (lo facilitate the recognition of 

regulated markets) between the CFTC and CONSOl3 (September I I. 2000): 

e. The /()5,'CO Multilateral i\le111orand11111 of Understw,ding ( '011cemi11g ( 'on.rnltrt1irm and 

Cooperation and the Exchange u.f h!fnr111atio11 (revised May 201 2) ("!OSCO MMOU"). to 

which the CFTC and CONSOl3 arc signatories, which covers primarily in formation 

sharing in the context or enforcement mailers: and 

f. The llt!ministrative ll/'/'a11ge111e11t.for the rrw1.1fi:r c?fpersonal data (""Personal Data 

Arrangement"). to which the CFTC (May 14. 20 I 9) and CON SOB (June 7. 20 I 9) are 

signatories. 

The Personal Data Arrangement supplements existing arrangements between the Authorities 

and sets forth certain safeguards for the transfer of personal data. The Authorities 

acknowledge that they will act consistent with tht: J>erst11rnl Data Arrangement\\ ith respect to 

the transfer or personal data b1.:1ween th1.:111 under this MOU . 

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18. To facilitate cooperation under this MOU. the J\uthoritics hereby designate contact persons as 

set forth in Appendix J\. which may be amended from timt: to time hy an Authority 

transmitting revised contact information in writing to the other i\ uthority. 

ARTICLE THREE: SCOPE OF SUPERVISORY CONSULTATION. 

COO PERA TJON, AND EXCHANGE OF INFORMATION 

General 

19. The Authorities recognize the importance or close communication concerning Covered Firms 

and intend to consult regularly. as appropriate, regarding: 

a. General supervisory issues. including regulatory. oversight. or other related developments; 

b. Issues relevant to the operations. activities. and regulation of Covered Firms with respect 

to U1cir Covered Matters; and 

c. Any other areas of mutual supervisory interest. 

20. The Authorities recognize in particular the importance or close cooperation in the event that a 

Covered Firm. particularly one whose failure likely would be systemically important to an 

Authority, experiences. or is threatened by, a potential financia l crisis or other Emergency 

Situation. 

2 1. Cooperntion will be most useful in. but is not limited to. the following circumstances where 

issues of common regul atory concern may arise: 

a. The initial application ofa Covered Firm ror c1uthorin1tion. registration. or exemption from 

registration. and the acquisition. disposal. or increase or significant holdings in a Covered 

Firm (e.g .. to assess eligibility of new beneficial owners of significant fractional interest): 

b. The ongoing supervision and oversight of a Cowred Firm with respect to its Covered 

Matters, including compliance with Laws and Regulations in either jurisdiction; and 

e. Regulatory or supervisory actions or approvals taken in relation to a Covered Firm by the 

CFTC or CONSOl3 that may materially impact the operations of the entity with respect to 

its Covered Matters in the jurisdiction or the other Aut hority. 

Event-Triggered Notification 

22. J\s appropriate in the particular circumstances and wi th respect to Covered Mallers. each 

Authority will endeavor to inform the other Authority promptly. and where practicable in 

advance. of: 

a. Pending regu latory changes that may have a material impact on the operations. reputation. 

rules. or procedures or a Covered Firm with respect to its Covered Matters: 

b. J\ny material event or which the /\uthority is aware that could impact the financia l or 

operational stability or a Covered Firm. Such events include the failure o r the Covered 

Firm to satisfy any of its requirements for continued authorizat ion. registration. or 

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exemption from registration where that failure could have an adverse effect in the 

_jurisdiction of the other Authority. as well as any known material change in the ownership. 

operating environment. operations. financial resou rces. management, or systems and 

controls ofa Covered Firm; and 

c. Enforcement actions or sanctions or significant regulatory actions. including the 

revocation, suspension. or modification of authorization, registration. or exemption from 

registration. concerning a Covered Firm and/or any individual involved in the Covered 

Mailers ofa Covered Firm. 

23. The determination of wlrnt constitutes --materially impact·· for purposes of Paragraph 21 or 

'·material impact", "nrnterial event'', "impact'·. ··adverse effect". "material change'·, 

"enforcement actions or sanctions". or "significant regulatory actions·· for purposes of 

Paragraph 22 will be lefi to the reasonable discretion ot't he relevant Authority that determines 

10 notify the other Authority. 

Request-Based lnformation Sharing 

24. To the extent appropriate to supplement informal consultations. upon wrillen request. the 

Requested Authority intends to provide the Requesting Authority the fu llest possible 

cooperation subject to the terms in this MOU in assisting the Requesting Authority"s 

supervision and oversight of Covered Firms with respect to Covered Mailers. including 

assistance in obtaining and interpreting in formation tha1 is relevant to ensuring compliance 

with the Laws and Regulations of the Requesting Authority and that is not reasonabl y 

otherwise available to the Requesting Authority. Such requests will be made pursuant to 

Article four of this MOU. and the Authorities anticipate that such requests will be made in a 

manner that is consistent with the goal or minimizing administrative burdens. 

25. The information covered by Paragraph 24 includes: 

a. Information responsive to requests rrom an Authority. or an entity to which an Authority 

has delegated registration functions, related 10 the fitness ofan applicant for authorization. 

registration. or exemption from registration: 

b. Information relevant to the financial and operational condition of a Covered Firm. 

including. for example. financial resources. risk management, and internal control 

proced ures: 

c. Relevant regulatory information and filings that a Covered firm is required to submit to an 

Authority including, for example. inti.:rim and annual financial statements and early 

warning notices: and 

cl. Regulatory reports prepared by an /\uthorit). including. for exam pk. examination reporls, 

findings. or information contained in such reports regarding Covered Firms. 

Periodic Meetings 

26. Representati ves of the Authorities inteml to meet periodically. as appropriate. to update each 

other on their respective functions and regulatory oversight programs and to discuss issues of 
common interest relating to the supervision of Covered Firms. including: contingenc) 

planning and crisis management. systemic risk concern~. the adequacy or existing cooperative 

arrangements, and the possible improvement or cooperation and coordination between the 

Authorities. Such meetings ma) be conducted by confi.:rcncc call or on a race-to-lace basis. as 

appropriate. 

ARTICLE FOUR: EXECUTION OF REQUESTS FOR INFORMATION 

27. To the extent possible, a request for information pursuant to Article Three should be made in 

writing (which may be 1ransmit1cd electronically) and addressed 10 the relevant contact 

person(s) identified in Appendix A. /\ request generally should specify the following: 

a. The in formation sought by the Requesting Authority; 

b. A general description of the matter that is the subject of the request; 

c. The purpose for wh ich the in formation is sought: and 

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

In format ion in response to the request, as well as any subsequent communication among 

Authorities. may be transmilled electronieall). /\ny electronic transmission should use means 

that arc appropriately secure in light ofthc conlide111ialit)' of the information being transmiltcd. 

The Requesting Authority and the Requested Aut hority should refer to the Personal Data 

Arrangement in requesting or providing personal data rursuam 10 this MOU. 

28. In an Emergency Situation. the Authorities will endeavor to notify each other as soon as 

possible of the Emergency Situation and will communicate information as appropriate in the 

part icular circumstances. taking into account all relevant factors. including the status ofeflorts 

to address the Emergency Situation. During an Emergency Situation, requests for information 

may be made in any form. including orally. provided such communication is confirmed in 

\\riling as promptly as possible fo llowing such notification. 

ARTICLE FIVE: ON-SITE VISITS 

29. In fulfilling its supervision and oversight rt:sronsibilities pursua111 to, and lo ensure compliance 

with, its Laws and Regulations in connection with Covered Matters of Covered Firms. an 

Authority (or. with respect to the CFTC, a registered fu tures assoc iation) may need to conduct 

On-Site Visits lo a Covered Firm physically located in the jurisdiction of' the other Authority. 

l::ach Authority will consult and work col laboratively\\ ith the other Authority in conducting 

an On-Site Visit. 

30. An On-Site Visit by an Authority wi ll be conducted in accordam:c \\ ith the folio" ing 

procedure: 

a. The Visiting Authority will provide advance notice to tire I .ocul Authority or its intent to 

conduct an 0 11-Site Visit and consult with a, iC\\ to n.:aching an understanding on the 

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intended timeframe for. and the srnpe of. the On-Site Visit. When establishing the scope 

or any proposed On-Site Visit, the Visiting Authority will give due and rull considera1ion 

to the supervisory activities or the Local Authority and any information 1ha1 was made 

available or is capable or being made available by the Local Authority. 

b. The Local Authority will share any relevant reports. or information conta ined therein. 

related to examinations it may have undertaken of the Covered Finn. 

e. The Authorities intend to assist each other regarding On-Site Visits. including providing 

information that is available prior to the On-Site Visit; cooperating and consulting in 

reviewing, interpreting. and ana lyzing the contents ofpuhlie and non-public Books and 

Records; and obtaining information from directors and senior management ora Covered 

Firm. 

d. The Authorities will consult with each other, and the Local Authority may if required by 

relevanl Laws and Regulations or in its discretion accompany or assist the Visiting 

Authority during the On-Site Visit. or the Authorities may conduct joint On-Site Visits 

where appropriate. 

ARTICLE SIX: PERMISSIBLE USES OF INFORMATION 

31. The Requesting Authority may use non-public information obtained under this MOU solely 

for the supervision and oversight of Covered Finns pursuant 10, and to ensure comp I iance 

with. the Laws and Regulations of the Requesting /\uthori ty with respect to Covered Matters. 

32. The Authorities recognize that, while !his MOU is not intended to gather information for 

enforcement purposes. subsequently an /\ ulhority may want to use the non-public information 

provided pursuant to this MOU for enlorcement purposes. In cases where a Requesting 

Authority seeks to use non-public information obtained pu rsuant to this MOU for enforcement 

purposes, includi ng in conducting investigations or taki ng enforcement action. treatment of the 

non-public information wi ll be in accordance with the use and conlidentiality provisions of the 

!OSCO MMOU and. provided both of the /\uthoritics arc signatories. the IOSCO Enhanced 

Mu//ilutera/ Me111ora11d11111 <!/" U11derstu11di11g Concerning Consultation and Cooperution and 

!he Exchange r!f !nfnrnwtirm. 

33. Before using non-public informal ion furn ished under this MOU for any rurposc other than 

those stated in Paragraphs 31 and 32. the Requesting Authority must first consult with and 

obtain the wrillen consent or the Requested Authority for the intended use. If consent is 

denied by the Kequcstcd Authority. the Authorities will consult to discuss the reasons for 

withhold ing approva l of such use and the eircumslances. ir any, under which the intended use 

by the Requesting Authori ty might be allowed. 

34. Ir an Authority c·Ri::cciving Authority .. ) receives, ,·ia a party that is not a signatory to this 

MOU. non-public informat ion originally provided by the other Authority ( .. Disclosing 

Authority'') that is related to the Disclosing /\uthority's supervision and oversight of a 

Covered Firm with r~specl LO its CO\·cred [Vlatters. the Receiving Authori1y will use and treat 

the information in accordance with the terms of this MOU. 

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35. The restrictions in this Article do not appl) to an Authority's use of information it obtains 

directly from a Covered Firm. whether during an On-Site Visit or otherwise. I lowevcr. where 

non-public information is provided to the Requesting Authority pursuant to an informationsharing request pursuant to Article four of this MOU. the restrictions in this MOU apply to the 

use of the information by that Requesting /\uthority. 

ARTICLE SEVEN: CONFIDENTIALITY OF INFORMATION AND ONWARD 

SHARING 

36. Except as provided in Paragraphs 37-39. each Authority will keep confidential. to the extent 

permillcd by law, non-public information shared under this MOU. requests made under this 

MOU. the contents or such requests. and an y other mailers arising under this MOU. 

37. /\s required by law, it may become necessary for a Requesting Authority to share non-public 

information obtained under this MOU with a Governmenial Entity in its jurisdiction. In these 

circumstances and to the extent permitted by law: 

a. The Requesting Authority intends to notil)' the Rcqi1cstcd Authority: and 

b. Prior lo the Requesting Authority sharing the non-public in formation. the Requesting 

Authority will provide adequate assurances to the Requested Authority concerning the 

Governmental Entity"s use and confidential treatment of the information. including, as 

necessary. assurances that: 

1. The Governmental Entity has confirmed that it requires the information for a purpose 

within the scope o r its jurisdiction: and 

11. The information will not be shared by the Ciovcrnmcntnl Entity with other parties 

without gelling the prior wrillen consent of the Requested Authority. 

38. Except as provided in Paragraphs 37 and 39. the Requesting Authority must obtain the prior 

writ1en consent of the Requested Authority before sharing non-public in formation received 

under this MOU with any non-signatory lo this MOU. The Requested Authority will take into 

account the level of urgency or the request and respond in a I irnely manner. During an 

Emergency Situation, consent may be obtained in Hn y form. including orally. provided such 

communication is confirmed in writing as promptly as possible lo llowing such notification. If 

consent is denied by the Requested Authority. the Authorities 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 /\ uthority might be allo\\'cd. 

39. To the extent possible. the Requesting Authority intends to notil)' the Requested Authority of 

any legall y enfo rceable demand for non-public information rurnished under this MOU. When 

complying ,,vith the demand. the Requesting Authority intends to assert all appropriate legal 

exemptions or privileges with respect to such in format ion as may be available. 

40. The Authorities intend that the shari ng or disclosure of' non-public information. including 

deliberative and consultati ve materials. such as \\rillcn analysis. opinions. or recommendations 

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relating to non-public i11forma1io11 that is prepared by or 011 behalf of an Authority, pursuant to 

the terms of this MOU, wi ll 1101 constitute a waiver of privilege or confidentiality of such nonpublic information. 

ARTICLE EIGHT: AMENDMENTS 

4 1. The Authorities will periodically review the functioning and effectiveness of this MOU with a 

view, infer alia, to expanding or altering the scope or operation of this MOU should that be 

judged necessary. This MOU may be amended with the written consent of1he Authorities 

referred to in Paragraph I . 

ARTICLE NINE: EXECUTION OF MOU 

-t2. Cooperation in accordance with this I\IOU will become effective on the date this MOU is 

signed by the Authorities. 

ARTICLE TEN: TERMINATION 

43. Cooperation in accordance with this MOU will co111i nue until the expiration of 180 days after 

an Authority gives written notice to the other Authority of its intention to terminate the M OU. 

I fan Authority gives such notice, the parties will consult concerning the disposition of any 

pending requests. If consensus cannot be reached through consultation, cooperation wi II 

continue with respect to all requests that were made under the MOU before the expiration of 

the 180-day period unti I all requests are fulfilled or the Requesting Authority withdraws such 

request(s). In the event of termination of this MOU. information obtained under this MOU 

will continue to be treated in the manner prescribed under Articles Six and Seven. 

Chairman & Chief l::xeculive 

~~_ ..... _A? __ 

Paolo Savona 

Chairman 

U.S. Commodity Futures Trading Commission Commissione Nazionale per le Societa e la Borsa 

Da1e:,1/~;2~1 A-0~0 

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APPENDIX A 

CONT ACT PERSONS

In addition to the.following contact information, the CFTC and CONSOB will exchange 

confidential emergency contact telephone information. 

CFTC

Joshua Sterling 

Director, Market Participants Division 

Commodity Futures Trading Commission 

1155 21st Street, N.W. 

Washington, DC 20581 

Phone: 202-418-6056 

Fax: 202-418-5407 

Email: jsterling@cftc.gov 

Joseph Sanguedolce 

Deputy Director, Examinations Branch, Market Participants Division

Commodity Futures Trading Commission 

140 Broadway 

New York, NY I 0005 

Phone:646-746-9750 

Fax: 646-746-9937 

Email: jsanguedolce@cftc.gov 

Suyash Paliwal 

Director, Office of International Affairs 

Commodity Futures Trading Commission 

1155 21st Street, N. W. 

Washington, DC 20581 

Phone: 202-418-6076 

Fax: 202-418-5187 

Email: spaliwal@cftc.gov 

CONSOB 

Martina Tambucci 

I lead, International Relations Office 

Commissione Nazionale per le Societa e la Borsa 

Via Giovanni Battista Martini 3 

00198 Rome 

Italy 

Phone: +39 06 84-77-381 

Email: cooperation.uri@consob.it 

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