This post was originally published on cftc.gov
WASHINGTON — The Commodity Futures Trading Commission and the U.S. Department of Agriculture today announced their signing of a Memorandum of Understanding intended to safeguard the integrity of U.S. agricultural markets.
The MOU will allow the CFTC and USDA to harmonize policies and practices to better share information and increase access to risk management tools. The agreement will also assist both agencies with monitoring and identifying structural or potential systematic risks, among other things.
“For decades, America’s agricultural community has relied on our markets to hedge risk, manage uncertainty, and plan for the future,” said CFTC Chairman Michael S. Selig. “I’m proud that the CFTC and USDA have formalized this partnership through an MOU that will strengthen protections for America’s farmers, ranchers, and producers while expanding opportunities to manage risk through more efficient data sharing. I commend Secretary Rollins for her partnership and commitment to a more coordinated regulatory approach that safeguards the integrity of our markets and ensures they continue serving the agricultural community that feeds and clothes our nation.”
“Faster and more transparent data sharing between USDA and CFTC is critical to helping our farmers and ranchers navigate an ever-changing market,” said USDA Secretary Brooke Rollins. “This MOU builds upon USDA’s ongoing data modernization efforts and allows our agencies to collaboratively identify risks and improve responses to market events. Breaking down barriers between government agencies to deliver for our customers is a hallmark of this administration and I am looking forward to the successes this MOU will bring.”
