Risk Library
   Documents by Author
     Additional Regulatory Documents
       London Communique on the Supervison of C...
         I. THE AUTHORITIES REACHED THE FOLLOWING...
         II. THE AUTHORITIES AGREED TO PROMOTE
         III. THE AUTHORITIES RECOMMENDED THAT FU...
         Annex 1










 

London Communique on the Supervison of Commodity Futures Markets

II. THE AUTHORITIES AGREED TO PROMOTE

With respect to contract design
  • The consideration of appropriate contract design principles by relevant market authorities to ensure that the terms and conditions of commodity contracts, including cash settlement terms, if applicable, minimise the susceptibility of such contracts to abusive conduct.

  • Clarity as to criteria and procedures for review and/or approval of contract design.

With respect to market surveillance

  • The adoption of effective market oversight measures which permit the monitoring of compliance with relevant laws, rules and procedures and the implementation of such measures to detect abusive conduct and to ensure a fair and orderly market.

  • The development of regulatory measures which facilitate the identification of large exposures for surveillance purposes.

  • Clarity as to (1) the types of activities which can impair the orderly operation of commodity markets, (2) measures for detecting and preventing abusive conduct, and (3) the types of intervention and sanctions authorised under relevant laws, rules and procedures.

  • The adoption of rules and procedures that authorise a market authority to intervene in a market situation and, if necessary, to punish abusive conduct.

  • Greater availability of information on prices, open interest and deliveries.

With respect to information sharing

  • Greater cooperation among market authorities in the sharing of relevant information concerning the supervision of their respective markets, both on a routine basis and as needed, and to promote communication among relevant personnel.

  • Clarity of procedures for access to information by market authorities.

Contact us * Risk Library * Documents by Author * Additional Regulatory Documents * London Communique on the Supervison of Commodity Futures Markets