Difference between revisions of "Memorandum Of Understanding"

A memorandum Of understanding (MOU) is an agreement between two parties and is often the same as a letter of intent. Many financial industry [[exchange]]s have signed MOUs with other exchanges in an effort to position themselves for a more global environment. These agreements between exchanges provide the opportunity to develop products that will benefit market users and enhance resources to educate individuals on the specific services of each exchange Non-exchange MOUs have been agreed upon for the sharing of information and partnership opportunities.

*The [[Securities and Exchange Commission]], the [[Commodities Futures Trading Commission]] and the [[Bank of England]] signed a memorandum of understanding,on October 28, 1997, to set forth a cooperative approach to sharing supervisory information. It is the first formal agreement among US and UK Securities, futures and banking regulators. The MOU was signed by SEC Chairman Arthur Levitt, CFTC Commissioner Barbara Holum, the Bank of England Governor, Eddie George and by Howard Davies who is the Chairman of the UK's Financial Services Authority. <ref> {{cite web|url=http://www.cftc.gov/opa/press97/opa4068-97.htm|name=Press Release|org=CFTC|date=October 20, 2008}}</ref>

*The [[Securities and Exchange Commission]] and the College of Euronext Regulators, which includes; The Netherlands, France, Belgium, Portugal, the United Kingdom and the United States, entered a memorandum of understanding, in January of 2007, when Euronext combined with the [[New York Stock Exchange]] in order to create the new group, [[NYSE Euronext]]. The MOU expresses each parties willingness to cooperate with each other in the interest in fulfulling their respective regulatory mandates particulary in the area of investor confidence and systemic stability.<ref> {{cite web|url=http://www.sec.gov/about/offices/oia/oia_bilateral/euronext-mou-eng.pdf|name=Press Release|org=SEC|date=October 20, 2008.}} </ref>