James Langton Facebook LinkedIn Twitter Earlier this year, U.S. and European authorities announced that they had agreed on a common approach regulating and approving CCPs. The MOU announced on Monday follows from that agreement, which aims to increase regulatory convergence, making it easier for derivatives clearing firms to operate in each another’s markets. “The execution of this MOU satisfies a condition of the ESMA recognition process and serves to facilitate recognition of U.S. CCPs,” notes the CFTC. Share this article and your comments with peers on social media The U.S. Commodity Futures Trading Commission (CFTC) and the European Securities and Markets Authority (ESMA) signed a memorandum of understanding (MOU) on Monday designed to facilitate co-operation between the regulators in the oversight of derivatives clearing firms that are seeking to become recognized as central counterparties (CCPs). The MOU covers ESMA’s assessment of regulatory compliance by U.S. clearing firms that are seeking to become recognized as CCPs in Europe, and monitoring of their ongoing compliance with the conditions for recognition.