The US Financial Industry Regulatory Authority (FINRA) and Japan Securities Dealers Association (JSDA) have inked a memorandum of understanding (MoU), to facilitate increased mutual cooperation between the regulators.
The agreement will further boost ability of both market regulators to supervise their respective securities markets, as well as the companies operating from the US and Japan.
As per terms of the agreement, both FINRA and JSDA have agreed to exchange information on issues related to regulatory and allow further sharing of regulatory techniques.
Commenting on the MoU, FINRA chairman and CEO Richard Ketchum said, "The MOU helps both FINRA and JSDA ensure market integrity and protect investors."
FINRA is the largest non-governmental regulator for all securities firms trading in the US, while the JSDA is a self-regulatory organization (SRO) in Japan.
JSDA regulates market intermediaries through its self-regulatory functions such as rule-making, enforcement, inspection, disciplinary actions, accreditation of sales representatives, and dispute mediation.