The European Securities and Markets Authority (ESMA) has entered into a Memorandum of Understanding (MoU) with the Autorité des marchés financiers (AMF), the Manitoba Securities Commission (MSC) and the Ontario Securities Commission (OSC) regarding arrangements for cooperation and the exchange of information relating to central counterparty activities carried on by entities recognized by each of these authorities. ESMA has also entered into a similar agreement with the Alberta Securities Commission (ASC).
Through the Memorandum of Understanding, ESMA can rely on the supervision and enforcement capabilities of the AMF, the MSC, the OSC and the ASC in Canada regarding central counterparty activities carried on by entities established in one of those provinces that are recognized by ESMA.
The purpose of the MoU is to allow ESMA to recognize, as a third-country central counterparty, a clearing house recognized by the AMF, the MSC, the OSC or the ASC which provides clearing services for derivatives in the European Union.
This Memorandum of Understanding stems from undertakings to regulate over-the-counter derivatives made by G20 members in Pittsburgh in September 2009.