MEMORANDUM OF UNDERSTANDING

United States Commodity Futures

Trading Commission

Bank of England

October 20, 2020

COOPERATION AND THE EXCHANGE OF INFORMATION

RELATED TO THE SUPERVISION OF CROSS-BORDER CLEARING ORGANIZATIONS
MEMORANDUM OF UNDERSTANDING CONCERNING COOPERATION

AND THE EXCHANGE OF INFORMATION RELATED TO THE SUPERVISION

OF CROSS-BORDER CLEARING ORGANIZATIONS

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 Bank of England in its capacity as supervisor of Covered Clearing 

Organizations (together, the “Authorities”) have reached this Memorandum of Understanding 

(“MOU”) regarding cooperation and the exchange of information in the supervision and oversight 

of clearing organizations that operate on a cross-border basis in both the United States and the 

United Kingdom. The Authorities express, through this MOU, their willingness to cooperate with 

each other in the interest of fulfilling their respective regulatory mandates, particularly in preserving 

the benefits of cross-border clearing activity.

The Authorities recognize that effective supervisory cooperation enhances coordinated oversight 

and encourages greater clarity, certainty, and consistency in regulatory requirements and actions. 

Moreover, such cooperation promotes financial stability and efficiency in supervisory oversight.

The Authorities also are mindful of carrying forward the steps they have taken within their 

respective jurisdictions to implement regulations that reflect reforms to over-the-counter derivatives 

markets agreed by G20 Leaders at the September 2009 Pittsburgh Summit and upholding

fundamental principles for supervisory cooperation and deference, including those set out in the 

internationally agreed Principles for Financial Market Infrastructures and in the G20 Leaders’ 

declaration at the September 2013 St. Petersburg Summit.

This MOU recognizes the history of cooperation between the Authorities with respect to clearing 

organizations and affirms the mutual clear commitment of the Authorities to effective and efficient 

supervision and oversight. The Authorities will continue to coordinate their supervisory activities 

in an effort to maximize utilization of staff resources, reduce unnecessary duplication, and 

encourage consistency in supervisory practices. This MOU recognizes the benefits of strong 

cooperation and sustained information sharing.

ARTICLE ONE: DEFINITIONS

For purposes of this MOU:

1. “Authority” means:

a. In the United States, the Commodity Futures Trading Commission (“CFTC”); and

b. In the United Kingdom, the Bank of England in its capacity as supervisor of Covered 

Clearing Organizations (“BOE”).

2. “Home Country Authority” means:

a. For Covered Clearing Organizations domiciled in the United States, the CFTC; and

b. For Covered Clearing Organizations domiciled in the United Kingdom, the BOE.
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3. “Requesting Authority” means the Authority making a request under this MOU.

4. “Requested Authority” means the Authority to which a request is made under this MOU.

5. “Laws and Regulations” means, as may be amended, supplemented, or replaced from 

time to time:

a. For the CFTC, the Commodity Exchange Act (“CEA”), Dodd-Frank Wall Street 

Reform and Consumer Protection Act, CFTC regulations, and other applicable legal 

or regulatory requirements in the United States; and

b. For the BOE, the UK Financial Services and Markets Act 2000 (“FSMA”), 

Regulation (EU) No. 648/2012 of the European Parliament and of the Council of 4 

July 2012 on OTC derivatives, central counterparties and trade repositories as 

applicable in the UK (“EMIR”) and associated level 2 binding technical standards, 

the Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central 

Counterparties and Trade Repositories) Regulations 2013, BOE rules, and other 

applicable legal or regulatory requirements in the United Kingdom.

6. “Person” means a natural person, unincorporated association, partnership, trust, 

investment company, or corporation, including a Clearing Member, Clearing Participant, 

or Covered Clearing Organization.

7. “Covered Clearing Organization” means a central counterparty (“CCP”) organized in 

either the United States or the United Kingdom that satisfies both of the following 

criteria:

a. A derivatives clearing organization that is, or that has applied to be, registered as 

such or that has been granted, or that has applied for, an exemption from registration 

or other relief under the CEA; and

b. A clearing house or investment exchange (that provides clearing services in relation 

to transactions conducted on that exchange) that is, or that has applied to be, 

recognised as a clearing house under the FSMA or that is, or that has applied to be,

authorized as a CCP or recognised under EMIR.

8. “Clearing Member” means a member of a Covered Clearing Organization that also 

serves as an intermediary through which market participants access the Covered 

Clearing Organization’s services.

9. “Clearing Participant” means a participant of a Covered Clearing Organization that does 

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

10. “Books and Records” means documents, electronic media, and books and records within 

the possession, custody, or control of, and other information about, a Covered Clearing 

Organization.
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11. “Emergency Situation” means the occurrence of an event that could materially impair 

the financial or operational condition of a Covered Clearing Organization, including a 

crisis scenario leading to the potential recovery or resolution of the Covered Clearing 

Organization.

12. “On-Site Visit” means any regulatory visit to the premises of a Covered Clearing 

Organization as described in Article Five for the purposes of ongoing supervision and 

oversight including the inspection of Books and Records.

13. “Local Authority” means the Authority in whose jurisdiction a Covered Clearing 

Organization that is the subject of an On-Site Visit is physically located.

14. “Visiting Authority” means the Authority conducting an On-Site Visit.

15. “Governmental Entity” means:

a. The U.S. Department of the Treasury, the Board of Governors of the Federal Reserve 

System, or the Securities and Exchange Commission (“SEC”), where the CFTC

receives non-public information from the BOE; and

b. Her Majesty’s Treasury (“HM Treasury”) or the Financial Conduct Authority 

(“FCA”), where the BOE receives non-public information from the CFTC.

ARTICLE TWO: GENERAL PROVISIONS

16. This MOU is a statement of intent to consult, cooperate, and exchange information in 

connection with each of the Authorities’ functions relating to Covered Clearing 

Organizations. The consultation, cooperation, and information sharing arrangements 

under this MOU will be interpreted and implemented in a manner and to the extent that 

is permitted by, and consistent with, the laws and requirements that govern each 

Authority. As of the date of this MOU and subject to its terms, with respect to 

consultation and cooperation, no domestic secrecy or blocking laws or regulations would 

prevent an Authority from providing assistance to the other Authority. The Authorities 

anticipate that cooperation between the Authorities primarily will be achieved through 

ongoing informal consultations, supplemented as needed by more formal cooperation. 

Cooperation may include oral communication, periodic meetings, written requests and 

exchanges of information, and other arrangements as may be developed by the 

Authorities. The provisions of this MOU are 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.

17. This MOU does not create any legally binding obligations, confer any rights, or modify 

or supersede domestic laws or regulations. This MOU does not confer upon any Person 

a legally enforceable right or ability directly or indirectly to obtain, suppress, or exclude 

any information or to challenge the execution of a request for assistance under this 

MOU.
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18. This MOU does not limit or condition the discretion of an Authority in any way in the 

discharge of its regulatory and supervisory responsibilities or prejudice the individual 

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

taking solely those measures described herein in fulfillment of its supervisory functions

or preclude Authorities from sharing information or documents with respect to Persons 

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

but may be subject to regulatory requirements in the United States and in the United 

Kingdom. In particular, this MOU does not affect any right of any Authority with 

respect to any Person subject to its jurisdiction that is physically located in the territory 

of another Authority.

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

the following existing arrangements:

a. The Memorandum of Understanding on Mutual Assistance and the Exchange of 

Information between the SEC and CFTC and, as successors in interest, the FCA and 

BOE (September 25, 1991), amended to include HM Treasury (May 9, 1994) (“1991 

MOU”);

b. The Memorandum of Understanding between the SEC and CFTC and, as successors

in interest, the FCA and BOE (October 28, 1997);

c. The Arrangement on Warehouse Information between the CFTC and, as successors 

in interest, the FCA and BOE (May 17, 2000);

d. The Memorandum of Understanding Concerning Consultation, Cooperation and the 

Exchange of Information Related to Market Oversight between the CFTC and, as 

successors in interest, the FCA and BOE (November 17, 2006);

e. The LCH Ltd Framework Arrangement among Crisis Management Group Members

to which the Authorities are signatories (July 14, 2017); and

f. The ICE Clear Europe Ltd Framework Arrangement among Crisis Management 

Group Members to which the Authorities are signatories (November 29, 2018).

This MOU supersedes the Memorandum of Understanding Concerning Cooperation and 

the Exchange of Information Related to the Supervision of Cross-Border Clearing 

Organizations between the CFTC and, as successor in interest, the BOE (September 14, 

2009) (“CFTC-FSA Clearing MOU”), and execution of this MOU serves as notice of 

termination of the CFTC-FSA Clearing MOU.

20. To facilitate cooperation under this MOU, the Authorities hereby designate contact 

persons as set forth in Appendix A, which may be amended from time to time by an

Authority notifying the other Authority and transmitting revised contact information in 

writing to the other Authority.
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ARTICLE THREE: SCOPE OF SUPERVISORY CONSULTATION,

COOPERATION AND EXCHANGE OF INFORMATION

General

21. The supervision of Covered Clearing Organizations that operate in both the United 

States and the United Kingdom is based upon close cooperation and the Authorities’ 

mutual respect for each jurisdiction’s regulatory regime and each Authority’s 

supervisory practices. Given the comprehensiveness of the supervisory regime and 

regulatory framework of each Home Country Authority, the presumption should be that 

the Authorities would rely upon the supervision of the Home Country Authority, and 

should endeavor to rely upon the regulatory framework of the Home Country Authority, 

to the greatest extent appropriate and permitted by applicable Laws and Regulations.

The Authorities, taking into account which is the Home Country Authority, should 

coordinate supervision with respect to functions of the Covered Clearing Organization, 

including risk management matters, system safeguards, recovery and wind-down, 

financial resources, and liquidity management. The Authorities also should endeavor to 

consult with each other on changes to regulatory status of, relief granted to, or 

supervisory treatment of a Covered Clearing Organization as set out in Paragraph 26 

below.

22. The Authorities recognize that the Home Country Authority is accountable in its 

jurisdiction for the resilience of a Covered Clearing Organization under its supervision. 

Where the CFTC is the Home Country Authority, the BOE’s oversight of the Covered 

Clearing Organization generally would focus on the clearing activity of UK market 

participants and material risks that the Covered Clearing Organization’s activities can 

pose in the United Kingdom. Where the BOE is the Home Country Authority, the 

CFTC’s oversight of the Covered Clearing Organization generally would focus on the 

clearing activity of U.S. market participants and material risks that the Covered Clearing 

Organization’s activities can pose in the United States.

23. The Authorities recognize the importance of close communication concerning their 

supervision of Covered Clearing Organizations and intend to share information and 

consult regularly, as appropriate, regarding:

a. General supervisory issues, including developments as to regulatory or oversight 

matters;

b. Relevant Laws and Regulations, including proposals to materially change regulatory 

requirements applicable to Covered Clearing Organizations;

c. Issues relevant to the operations, activities, and regulation of Covered Clearing 

Organizations; and

d. Any other areas of mutual supervisory interest.

24. Cooperation will be most useful in, but is not limited to, the following circumstances

where issues of common regulatory concern may arise:
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a. The initial application for authorization, recognition, registration, exemption 

therefrom, or other relief by a Covered Clearing Organization that has regulatory 

status in the other jurisdiction;

b. The ongoing supervision and oversight of a Covered Clearing Organization with 

respect to compliance with applicable Laws and Regulations, exemptive or other 

relief, or international standards;

c. Coordination related to Covered Clearing Organizations in connection with 

prospective and ongoing supervisory activities and practices, planning and 

conducting any On-Site Visits, and the nature of the potential reliance on the 

supervision of the Home Country Authority; and

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

Clearing Organization that may impact the operations of the entity in the jurisdiction

of the other Authority.

25. The Authorities recognize in particular the importance of close cooperation, robust 

consultation, and information sharing in the event that a Covered Clearing Organization 

experiences, or is threatened by, a potential financial crisis or other Emergency 

Situation. The Home Country Authority should lead in an Emergency Situation. In 

fulfilling this role, the Home Country Authority should provide notification to the other 

Authority consistent with Paragraphs 28 through 30 below, keep the other Authority 

appropriately informed throughout the Emergency Situation, and consult with and take 

account of the views of the other Authority to the greatest extent possible.

26. In order to seek to reduce potential disruption in cross-border clearing arrangements, the 

Authorities should endeavor to consult with one another before proposing or adopting 

measures that could result in a change in the regulatory status of, relief granted to, or 

supervisory treatment of a Covered Clearing Organization. The Authorities should

endeavor to cooperate to manage adjustments as necessary and appropriate, for example, 

by consideration of a reasonable transition period, in relation to both the Covered 

Clearing Organization as well as the day-to-day supervisory cooperation between the 

Authorities.

27. The Authorities will endeavor to reach an understanding on the interpretation and 

application of this MOU. Where the Authorities encounter material differences of views 

related to supervision of a Covered Clearing Organization or the interpretation of a

provision of this MOU, they should endeavor to make good faith efforts, through 

cooperation, consultations, and discussions, to resolve such differences in order to reach 

mutually acceptable resolution of the issues raised. To efficiently resolve material 

differences that may arise, the Authorities intend to apply clear processes for 

engagement including:

a. An Authority that disagrees with a matter related to the supervision of a Covered 

Clearing Organization, or interpretation of this MOU, should provide the other 

Authority with a reasoned notice explaining its concerns;

b. The Authority receiving the notice should respond in a timely manner and provide an 

opportunity for discussion; and
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c. The Authorities should engage in good faith efforts to resolve differences in an 

amicable and equitable manner among the appropriate senior staff members.

Event-Triggered Notification

28. As appropriate in the particular circumstances, each Authority endeavors to inform the 

other Authority promptly, and where practicable in advance, of:

a. Any permission or approval granted to a Covered Clearing Organization to provide 

clearing services to Clearing Members, Clearing Participants, trading venues or,

when known to the Covered Clearing Organization, clients established in the other 

Authority’s jurisdiction, including in respect of branches of entities established in the 

other Authority’s jurisdiction;

b. Pending regulatory changes that may have a significant impact on the regulation, 

operations, activities, or reputation of a Covered Clearing Organization, including

those that may significantly affect the rules or procedures of a Covered Clearing 

Organization;

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

financial or operational resilience of a Covered Clearing Organization including such 

events as a default or potential default of a Clearing Member or Clearing Participant;

a major disruption in the functioning of a Covered Clearing Organization resulting 

from, for example, a severe operational or market event; market or settlement bank 

difficulties that might adversely impact the Covered Clearing Organization; failure 

by a Covered Clearing Organization to satisfy any of its requirements for continued 

authorization, recognition, registration, exemption therefrom, or other relief where 

that failure could have a material adverse effect in the other jurisdiction; any action 

taken within a resolution procedure or the implementation of a recovery plan by a 

Covered Clearing Organization; or any known adverse material change in the 

ownership, operating environment, operations, financial resources, management, or 

systems and controls of a Covered Clearing Organization;

d. The status of efforts of which the Authority is aware to address any material event 

that could adversely impact the financial or operational condition of a Covered

Clearing Organization, Clearing Member, or Clearing Participant; and

e. Enforcement actions or sanctions or significant regulatory actions, including the 

revocation, suspension, or modification of authorization, recognition, registration,

exemption therefrom, or other relief concerning a Covered Clearing Organization.

For the purposes of subparagraphs (b)-(e) above, references to a Covered Clearing 

Organization will include, where the context so permits in accordance with Laws and 

Regulations and consistent with Paragraph 32 below, a member of the Covered Clearing 

Organization’s group physically located in the jurisdiction of the notifying Authority.

29. The determination of what constitutes “significant impact”, “significantly affect”, 

“material event”, “adversely impact”, “major disruption”, “difficulties”, “material 

adverse effect”, “adverse material change”, “significant regulatory actions”, or “where 
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the context so permits” for purposes of Paragraph 28 will be left to the reasonable 

discretion of the relevant Authority that determines to notify the other Authority.

30. In an Emergency Situation, notification by an Authority to the other Authority should 

occur as soon as practicable after becoming aware of the Emergency Situation and 

should cover:

a. General information on the nature of the Emergency Situation, action taken or likely 

to be taken by a Covered Clearing Organization as far as known to each Authority, 

including actual or prospective use of the Covered Clearing Organization’s default 

protections or recovery plans;

b. In the event of a major Clearing Member’s default, implications of the default, as 

well as recovery or resolution actions for the Covered Clearing Organization and its 

non-defaulting Clearing Members;

c. Details of settlement in and/or use of failure-to-settle procedures;

d. Implications of operational disruptions for the continuity of services provided by a 

Covered Clearing Organization; and

e. If the Covered Clearing Organization is in financial distress, exposures to the 

Covered Clearing Organization of Clearing Members and interoperable financial 

market infrastructures in the other Authority’s jurisdiction.

31. Paragraphs 28-30 will not preclude the Authorities from entering into any further 

arrangements relating to notification regarding specific financial or operational issues

related to a Covered Clearing Organization.

Information Sharing

32. To supplement informal consultations, each Authority intends to provide the other 

Authority with the fullest possible cooperation subject to the terms in this MOU in 

assisting the other Authority’s exercise of its functions relating to a Covered Clearing

Organization, including assistance in obtaining and interpreting information that is not 

otherwise available to the other Authority and that is relevant to ensuring compliance by 

the Covered Clearing Organization with the Laws and Regulations of the other 

Authority, exemptive or other relief granted by the other Authority, or applicable 

international standards.

33. A Requesting Authority may request, from the Requested Authority, information that 

relates to a member of a Covered Clearing Organization’s group physically located in 

the jurisdiction of the Requested Authority and that is in the possession of the Requested 

Authority in connection with the Requested Authority’s supervision of the Covered 

Clearing Organization or of another clearing organization that is a member of the same 

group, where the information from the other clearing organization in the group is 

relevant to supervision of the Covered Clearing Organization and where the Requesting 

Authority specifies the purpose for which the information is necessary to assist it in 

assessing compliance by the Covered Clearing Organization with the Laws and 

Regulations of the Requesting Authority, exemptive or other relief granted by the 
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Requesting Authority, or applicable international standards. 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 of minimizing administrative 

burdens.

34. The information covered by Paragraph 32 includes:

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

Organization including, for example, financial resources, risk management, and 

internal control procedures;

b. Relevant regulatory information and filings that a Covered Clearing Organization is 

required to submit to an Authority including, for example, interim and annual 

financial statements and event-specific notices; and

c. Regulatory reports prepared by an Authority, including, for example, examination 

reports, findings, or information contained in such reports, regarding Covered 

Clearing Organizations.

35. Any request for information will be assessed on a case-by-case basis by the Requested 

Authority, to determine whether the information can be provided (either in part or in 

whole) under the terms of this MOU and in accordance with Laws and Regulations. In 

any case where a request cannot be fulfilled in part or in whole, the Requested Authority 

will consult with the Requesting Authority and discuss whether other information could 

be provided or whether the requested information may be maintained by another 

authority in the jurisdiction of the Requested Authority.

Periodic Meetings

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

and discuss their respective functions and regulatory oversight programs and to identify 

and discuss issues of common interest relating to the supervision of Covered Clearing 

Organizations, including: contingency planning and crisis management, systemic risk 

concerns, default procedures, the adequacy of supervisory coordination and existing 

cooperation arrangements, and the possible improvement of cooperation and 

coordination between the Authorities. The signatories to this MOU, or their successors,

may meet as appropriate to discuss the effectiveness of the MOU and cooperation 

between the Authorities. Any periodic meetings may be conducted by conference call or 

on a face-to-face basis, as appropriate.

ARTICLE FOUR: EXECUTION OF REQUESTS, RESPONSES, AND NOTIFICATIONS

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

made in writing (which may be transmitted electronically), and addressed to the relevant 

contact person in Appendix A. A request generally should specify the following:

a. The information sought by the Requesting Authority;

b. A general description of the matter that is the subject of the request;
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c. The purpose for which the information is sought; and

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

38. Notification to an Authority pursuant to any provision of this MOU and information 

provided by an Authority in response to a request or notification, as well as any 

subsequent communication between Authorities, may be transmitted electronically. Any 

electronic transmission should use means that are appropriately secure in light of the 

confidentiality of the information being transmitted. Any transfer of personal data will 

be consistent with applicable legal requirements for the protection of personal data.

39. During an Emergency Situation, notifications or requests for information may be made 

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

promptly as possible following such notification or request.

ARTICLE FIVE: ON-SITE VISITS

40. The Authorities will cooperate in the scoping of any On-Site Visits and will consult and 

work collaboratively in conducting any On-Site Visit. An Authority may conduct 

appropriate On-Site Visits to a Covered Clearing Organization physically located in the 

jurisdiction of the other Authority in fulfilling its supervision and oversight 

responsibilities pursuant to Laws and Regulations and to ensure compliance by a 

Covered Clearing Organization with such Laws and Regulations, exemptive or other 

relief granted by the Authority, or applicable international standards. Where a Covered 

Clearing Organization outsources material functions to another entity that is physically 

located in the jurisdiction of the Local Authority, an On-Site Visit by a Visiting 

Authority could include a visit to the premises of that entity if the Covered Clearing 

Organization is unable to provide the requested information at its premises.

41. Any On-Site Visit by an Authority will be conducted in accordance with the following 

procedure:

a. The Visiting Authority provides reasonable advance notice to the Local Authority of 

its intent to conduct an On-Site Visit and the intended time frame for, and the 

purpose and scope of, the On-Site Visit. Other than in exceptional circumstances, 

the Visiting Authority will notify the Local Authority prior to notifying 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 undertaken of the Covered 

Clearing Organization.

c. The Authorities intend to assist each other regarding On-Site Visits, including 

providing information that the Visiting Authority may request and that is available 

prior 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 

information as permitted by Laws and Regulations from directors and senior 

management of a Covered Clearing Organization.
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d. The Authorities will consult with each other, and the Local Authority may 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

42. An Authority may use non-public information obtained under this MOU solely for the 

purposes of supervision and oversight of Covered Clearing Organizations pursuant to

Laws and Regulations and to ensure compliance with such Laws and Regulations,

exemptive or other relief granted by the Authority, or applicable international standards,

or for purposes that advance the Authority’s supervisory goals or enhance financial 

stability pursuant to its statutory obligations.

43. The Authorities recognize that, while this MOU is not intended to enable the Authorities 

to gather information for enforcement purposes, the Authorities subsequently may want 

to use the non-public information provided pursuant to this MOU for enforcement

purposes. In cases where an Authority seeks to use non-public information obtained 

pursuant to the MOU for enforcement purposes, including in conducting investigations 

or taking enforcement action, use of the non-public information will be in accordance 

with the terms and conditions in Paragraph 16 of the 1991 MOU.

44. Before using non-public information furnished under this MOU for any purpose other 

than those stated in Paragraphs 42 and 43, the Authority receiving such non-public 

information first must consult with and obtain the written consent of the other Authority 

for the intended use. If consent is denied by the other Authority, the Authorities will 

consult to discuss the reasons for withholding approval of such use and the 

circumstances, if any, under which the intended use might be allowed.

45. If an Authority (“Receiving Authority”) receives, via a party that is not a signatory to 

this MOU, non-public information originally provided by the other Authority

(“Disclosing Authority”) that is related to the Disclosing Authority’s supervision and 

oversight of a Covered Clearing Organization and that the Receiving Authority is aware 

was obtained by the third party from the Disclosing Authority on a confidential basis, the 

Receiving Authority will use and treat the information in accordance with the terms of 

this MOU.

46. The restrictions in this Article Six do not apply to an Authority’s use of information it

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

or otherwise. However, where non-public information is provided by an Authority to the 

other Authority pursuant to this MOU, the restrictions in this MOU apply to the use of 

such information by the Authority receiving the information.
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ARTICLE SEVEN: CONFIDENTIALITY OF INFORMATION AND ONWARD SHARING

47. Except as provided in Paragraphs 48 or 49 below, each Authority will keep confidential,

to the extent permitted by law, non-public information shared under this MOU, requests 

made under this MOU, the contents of such requests, and any other matters arising under 

this MOU.

48. As required or otherwise permitted by law, it may become necessary or appropriate for 

an Authority to share non-public information obtained under this MOU with a

Governmental Entity in its jurisdiction. In these circumstances and to the extent 

permitted by law:

a. The Authority intends to notify the other Authority; and

b. Prior to the Authority sharing the non-public information with the Governmental 

Entity, the Authority will provide adequate assurances to the other Authority 

concerning the Governmental Entity’s use and confidential treatment of the 

information, including, as necessary, assurances that:

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

purpose within the scope of its jurisdiction; and

ii. The information will not be shared by the Governmental Entity with other 

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

provided the information under the MOU.

49. Except as provided in Paragraph 48, an Authority must obtain the prior written consent 

from the other Authority before sharing non-public information received under this 

MOU with any non-signatory to this MOU. The other Authority will take into account 

the level of urgency of the request to onward share the information and will respond in a 

timely manner. During an Emergency Situation, consent may be obtained in any form, 

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

possible following such notification. If consent is denied by an 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 

Authority receiving the information under the MOU might be allowed.

50. To the extent possible, each Authority intends to notify the other Authority of any 

legally enforceable demand for non-public information furnished by the other Authority 

under this MOU. Prior to complying with the demand, the Authority intends to assert all 

appropriate legal exemptions or privileges with respect to such information as may be 

available.

51. The Authorities intend that the sharing or disclosure of non-public information, 

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

recommendations relating to non-public information that is prepared by or on behalf of 

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

or confidentiality of such information.
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ARTICLE EIGHT: AMENDMENTS

52. The Authorities will periodically review the functioning and effectiveness of the 

cooperation arrangements between the CFTC and the BOE with a view, inter alia, to 

expanding or altering the scope or operation of the arrangements should that be judged 

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

referred to in Paragraph 1, including in consideration of changes in the regulatory status

of, relief granted to, or supervisory treatment of one or more Covered Clearing 

Organizations or in the relevant regulatory regime in either jurisdiction.

ARTICLE NINE: EXECUTION OF MOU

53. Cooperation in accordance with this MOU will become effective on the date this MOU 

is signed by the Authorities.

ARTICLE TEN: SUCCESSOR AUTHORITIES

54. Where the relevant functions of an Authority are transferred or assigned to another 

authority or authorities, each successor authority will become an Authority under 

Paragraph 1 and the terms of this MOU will apply to such successor authority or 

authorities performing those relevant functions without the need for any further 

amendment to this MOU and notice will be provided to the other Authority. This 

succession will not affect the ability of the successor authority or authorities or any 

other Authority to give written notice as provided in Paragraph 55 that it no longer 

wishes to be a signatory to this MOU if it determines to do so.

ARTICLE ELEVEN: TERMINATION

55. Cooperation in accordance with this MOU will continue until the expiration of 30 days 

after either Authority gives written notice to the other Authority of its intention to 

terminate the MOU. If an Authority gives notice of termination, the Authorities will 

consult concerning the disposition of any pending requests. If an understanding cannot 

be reached through consultation, cooperation will continue with respect to all requests 

for assistance involving a terminating Authority that were made under this MOU before 

the expiration of the 30-day period until all such requests are fulfilled or the Requesting 

Authority withdraws such request(s) for assistance. In the event of termination of this 

MOU, information obtained under this MOU will continue to be treated in the manner 

described under Articles Six and Seven.
< 1:. 1hi;)oft, day or Ocfohe ('"" 2020. 

Jon Cunliffe 

Deputy Governor. Financial Stability 

Bank of England 

Chairman & Chief Exccuti\\: 

U.S. Commodity Futures Trading Commission 

I•