The MOU is designed to provide a coherent and efficient regulatory framework for these markets, without prejudice to the domestic legal obligations of the signatory authorities. Under the MOU the authorities agree to develop through consultation and co-operation a common approach on matters such as the rulebook and trading procedures of the Euronext derivatives markets; the systems and controls of the trading systems; cross membership agreements; market surveillance; and corporate governance issues.
Welcoming the signature of the Memorandum, Gay Huey Evans, Director of Markets and Exchanges at the FSA said: "This is a good example of national regulators coming together to co-operate to ensure effective supervision of a multi-national entity and will be of benefit to the users of Euronext-LIFFE."
Although there has been ongoing contact between the relevant authorities since LIFFE became part of the Euronext Group, they recognise that the supervision of the Euronext derivatives markets now calls for more specific regulatory co-operation as Euronext intends to use the same trading system (LIFFE CONNECT) for its derivatives markets in Belgium, France, The Netherlands, Portugal and the UK.
