In November 2006, the CFTC and FSA signed a Memorandum of Understanding to share information necessary to detect potential abusive or manipulative trading practices that involve trading in related contracts on UK and US derivatives exchanges.
The respective organisations will implement strengthened surveillance over US-linked energy contracts including enhanced direct access rights to trade execution and audit trail data.
They will also conduct mutual on-site visits of exchange operators, share exchange regulations and notices and disciplinary notices and coordinate an emergency action framework.
Lord Turner says: “It is important that we continue to pursue all means to maintain fair, orderly and efficient markets, both nationally and internationally. The measures announced today will help to facilitate coordinated action, where appropriate. I am pleased that we continue to work collaboratively with the CFTC to achieve our common goals.”
Gensler adds: “I believe that we must effectively utilise all existing powers to ensure that futures markets remain free of manipulation, fraud or other market abuses. Achieving this goal requires a coordinated international response. The CFTC will work closely with the FSA to respond to these challenges in a coordinated manner.”