Some security-based swap dealer and participant entities who are supervised by the European Central Bank get a shortcut to being permitted also in the United States.

A memorandum of understanding between the European Central Bank (ECB) and the US Securities and Exchange Commission (SEC) serves to limit the need for double paperwork by market participants who work on both sides of the Atlantic.

US regulation states that non-US “security-based swap dealers” and “major security-based swap participants” with significant business in the country should register with the SEC by, respectively, 1 November 2021 and 1 December 2021. According to ECB’s press release, the agreement enables the SEC to “permit such entities to satisfy certain US requirements by complying with comparable European Union (EU) and national requirements”.

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“The ECB and the SEC will communicate and exchange information on the security-based swap activities that ECB-supervised entities conduct in the United States. This cooperation will provide a basis for relevant euro area entities to minimise duplication of compliance efforts and to continue focusing on compliance with EU requirements, while ensuring compliance with US requirements,” it says.