FSC Chairman Yim Jong-yong
The CFTC, the Korean Financial Services Commission (FSC) and the Korean Financial Supervisory Service (FSS) have signed a 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 the United States and in the Republic of Korea,” the CFTC reports.
Signatories to the MOU include CFTC Chairman Tim Massad, FSC Chairman Yim Jong-yong and FSS Governor Zhin Woong-Seob.
MOUs are intended to “combat cross-border fraud and other illegal practices that could harm customers or threaten market integrity,” notes the CFTC, which has “entered into arrangements for cooperative enforcement with authorities in more than 20 jurisdictions.”
“Through the MOU, the CFTC and the FSC and FSS express their willingness to cooperate in the interest of fulfilling their respective regulatory mandates,” the CFTC says. “Cross-border information sharing among market authorities plays an integral role in the effective surveillance of global markets that are linked by products, participants, and technology. Information sharing arrangements can be critical in combating cross-border fraud and manipulation, addressing the financial risks of market participants, and sharing regulatory expertise on market oversight and supervision.”
MOUs can address “various surveillance and enforcement issues,” the CFTC says, and they focus on such subject matter as technical assistance, risk assessment of firms in various jurisdictions, supervision of the alternative investment fund industry, and “cross-border securities and derivatives violations, including the most serious offenses, such as manipulation, insider trading and customer fraud.”
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