Memorandum Of Understanding
Memorandum Of Understanding(MOU)is an agreement between two parties and is often the same as a letter of intent. Many financial industry exchanges have signed MOUs with other exchanges in an effort to position themselves for a more global environment. These agreements between exchanges provide the opportunity to develop products that will benefit market users and enhance resources to educate individuals on the specific services of each exchange. Non-exchange MOUs have been agreed upon for the sharing of information and partnership opportunities.
- The Securities and Exchange Commission, the Commodities Futures Trading Commission and the Bank of England signed a Memorandum of Understanding to set forth a cooperative approach to sharing supervisory information. It is the first formal agreement among US and UK Securities, futures and banking regulators. The MOU was signed by SEC Chairman Arthur Levitt, CFTC Commissioner Barbara Holum, the Bank of England Governor, Eddie George and by Howard Davies who is the Chairman of the UK's Financial Services Authority.