On March 5, 2014, FERC and the Commodity Futures Trading Commission (“CFTC”) announced the creation of a staff-level Interagency Surveillance and Data Analytics Working Group. This new working group will focus on data security, data sharing infrastructure, and the use of analytical tools for regulatory purposes, all of which is intended to help FERC and the CFTC coordinate the sharing of information between the two agencies.
In January earlier this year, FERC and the CFTC executed a Memorandum of Understanding (“MOU”) pursuant to Section 720(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (see January 10, 2014 edition of the WER). Under the MOU, the agencies agreed to (1) facilitate information sharing in connection with market surveillance, (2) minimize duplicative information requests, and (3) address the treatment of proprietary and privileged information collected by the agencies. Both agencies believe that the creation of the working group will help achieve some of these goals.
The MOU also required both FERC and the CFTC to promptly provide responsive information in connection with market surveillance or an investigation into potential manipulation, fraud, or market abuse under that commission’s jurisdiction upon request from the other commission. In addition to the announced working group, the agencies announced on Wednesday that they have recently started transmitting such market data pursuant to the terms of the MOU.
A copy of FERC and the CFTC’s announcement can be found here.