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| | I. THE AUTHORITIES REACHED THE FOLLOWING... |
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London Communique on the Supervison of Commodity Futures Markets
I. THE AUTHORITIES REACHED THE FOLLOWING POINTS OF CONSENSUS
- That the proper design of commodity contracts
- not only enhances their economic utility but also is a critical aspect of market integrity in that proper design reduces the susceptibility of such contracts to market abuses, including manipulation;
- complements but is not a substitute for an appropriate market surveillance programme.
- That an active and effective market surveillance programme by the market regulatory authorities
- is essential to ensure that commodity futures markets operate in a fair and orderly manner;
- should be designed to detect, to prevent and to take corrective action with respect to, and to punish abusive conduct and should be supported by appropriate regulatory measures;
- requires that market authorities have access to necessary information, subject to appropriate confidentiality provisions;
- should be designed to address cash market conditions.
- That market authorities of related markets should share to the extent permitted by their laws, rules and regulations surveillance information to manage a market disruption and should designate contact persons for such purposes.
- That regulatory measures which facilitate the identification of large exposures should be developed. These measures may involve access to information relating to persons holding or controlling such large exposures and their related derivatives, overthecounter and cash market positions. These measures may also involve access to information on deliveries.
- That information may be necessary (1) about the normal operation of markets; (2) when strong concerns exist about potential abusive conduct; or (3) when corrective actions or sanctions may be warranted.
- That the information shared should be obtained for the regulatory purposes of the requesting market authority only and should not be used for any other purposes.
- That market authorities will keep confidential the request for information and information exchanged, consistent with the needs including the laws and regulations in force in the jurisdiction of the requested authority and with the domestic laws and regulations in force in the jurisdiction of the requesting authority. In no event will they use a degree of care less than that employed to protect the confidentiality of equivalent domestic information.
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London Communique on the Supervison of Commodity Futures Markets
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