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4.1 Working Party members recognize the importance of open and timely communication as a means of facilitating regulatory decision-making during periods of market disruption. For example, by sharing information on product specifications, prices, average trading volume, margin requirements, circuit breakers, price limits, trading halts and similar pre-prescribed regulatory measures, market authorities may be better able to analyze market conditions and take appropriate regulatory measures. Advance warning of ad hoc actions such as market interventions taken by market authorities is also important and may assist contingency planning or monitoring activities in other markets.
4.2 At a minimum, mechanisms for open and timely communication may enhance the ability of market authorities to formulate more effective unilateral measures to address such events and can assist in ensuring that regulatory responses do not exacerbate the situation or are not over-reactive because they are based on inadequate information. In addition, market authorities may find it useful to consult with each other based on the content of the information and, if appropriate, agree on a coordinated response. Therefore, Working Party members agree that: • Information concerning the related cash or derivative market is useful for the purpose of developing approaches to minimize the adverse effects of market disruption. Such approaches range from unilateral actions to cooperative or coordinated responses.
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