The Dubai Financial Services Authority (DFSA) and the European Securities and Markets Authority (ESMA) have inked a memorandum of understanding (MoU) to facilitate mutual cooperation and information exchange between the two parties.
Under the agreement, the Dubai regulator has agreed to share information on centrally cleared transactions with the Europe regulator.
The accord will allow Dubai-based central counterparties (CCPs) to offer services to EU-based clearing members and trading venues.
The latest agreement comes after the European Commission found Dubai’s regulatory framework for CCPs equivalent to that of the the European Union.
A decision published by the European Commission in mid-December 2016 also found the DFSA framework to be compliant with international standards under the International Organisation of Securities Commissions’ (IOSCO) Principles for Financial Market Infrastructures.
The two watchdogs previously signed an agreement in 2013 for cooperation over credit rating agencies.
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DFSA CEO Ian Johnston said: “Today’s signing signals a new phase in the good relationship between the DFSA and ESMA and enables us to cooperate and exchange information in connection with monitoring of DIFC-based CCPs. The DFSA has always placed a high priority on cooperation and its ability to share information and assist fellow regulators; particularly where the DIFC firms have strong links with the European Union market participants.”
DFSA earlier struck similar agreements with counterparts in France, Germany, the UK, and with most other European Union securities regulators.