The Securities and Exchange Commission (the “SEC”) recently announced that it signed an interagency Memorandum of Understanding (“MOU”) with the Antitrust Division of the Department of Justice (the “DOJ”). While not legally binding, the MOU establishes a framework for the SEC and the DOJ to continue regular discussions and review law enforcement and regulatory matters affecting competition in the securities industry, including provisions to establish periodic meetings among the respective agencies’ officials. The MOU also “provides for the exchange of information and expertise the agencies believe to be potentially relevant and useful to their oversight and enforcement responsibilities, as appropriate and consistent with applicable legal and confidentiality restrictions.” Jay Clayton, the SEC’s Chairman, explained that this MOU was “historic” because “competition is embedded in our securities laws” and that “by formalizing the exchange of knowledge between our agencies, [the MOU would] foster even greater collaboration and cooperation to ensure that we maintain the efficient and competitive markets that American investors rely on.”
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About Richard W. Gonnello
Richard W. Gonnello is a partner in Faruqi & Faruqi, LLP's New York office and Chair of the firm's Securities Litigation Practice Group.