The DFSA, which regulates companies in the Dubai International Finance Centre (DIFC), said the deal enables greater cooperation with the EU regulator in connection with monitoring DIFC-based central counterparties (CCPs).
It follows a decision in December last year by the European Commission, which found the DFSA’s regulatory framework for CCPs was equivalent to that of the European Union.
The EC’s decision also confirmed that the DFSA’s framework is compliant with international standards set out under the International Organisation of Securities Commissions’ (IOSCO) Principles for Financial Market Infrastructures.
The MoU was signed on behalf of the DFSA by chief executive, Ian Johnston, and by the chairman of ESMA, Steven Maijoor, in Milan on Wednesday.
The DFSA’s Johnston said the regulatory body had “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.”
The signing marks the 100th MoU signed by the DFSA and the second with ESMA. The first MoU between the two regulators was signed in 2013 on cooperation in relation to credit rating agencies. T
The DFSA also has MoUs in place with counterparts in France, Germany, the UK, and with most other European Union securities regulators through multilateral arrangements.
“The DFSA remains committed to international best practice and continues to work with the EC and ESMA in other areas of their responsibilities,” Johnston said.
