CFTC and FSA agree to cooperate on cross-border market surveillance
On November 17, 2006, the U.S. Commodity Futures Trading Commission (CFTC) and the U.K. Financial Services Authority (FSA) signed a Memorandum Of Understanding (MOU) concerning consultation, cooperation and the exchange of information related to market oversight.
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The MOU was signed by CFTC Chairman Reuben Jeffery III and FSA Chairman Callum McCarthy.
In commenting on the CFTC's latest international arrangement, CFTC Chairman Jeffery stated: "The MOU which the CFTC and FSA have signed is yet another illustration of the long history of cooperation between our agencies to address cross-border fraud and market abuse, and to address financial risks posed by market participants. Information-sharing plays an integral role in the effective surveillance of global markets that are increasingly linked by products, participants, and technology. This MOU represents our commitment to addressing cross-border market surveillance concerns cooperatively and in ways that do not stifle innovation or competition."
The MOU establishes a framework for the CFTC and FSA to share information that the respective authorities need to detect potential abusive or manipulative trading practices that involve trading in related contracts on U.K. and U.S. derivatives exchanges. Sharing necessary information on linked markets will provide the regulators with a more complete view of these markets for oversight purposes.