For Release: June 25, 2009
Washington, DC - On June 24-25, 2009, senior enforcement officials from 14 regulatory authorities around the world gathered in Washington, DC for the CFTC’s third annual international manipulation enforcement conference. Co-chaired by the CFTC and the UK Financial Services Authority (UK FSA), the conference brought together international regulators to share their respective experiences and observations of market abuse trends with the goal of enhancing regulators’ ability to detect and deter misconduct affecting commodity prices locally and worldwide. Discussions covered a wide-range of topics including the scope of derivatives market abuse, market surveillance, and abusive behavior involving futures, cash and over-the-counter derivatives markets. Through these discussions the CFTC and FSA seek to ensure that commodity markets are receiving adequate attention by regulators worldwide to effectively detect and deter manipulation.
Given the increasingly interconnected and global nature of commodity markets, the International Organization of Securities Commissions (IOSCO) formed a Task Force on Commodity Futures Markets to determine whether regulators’ supervisory approaches were appropriate in light of market developments. In a report published by IOSCO this year, the Task Force, co-chaired by the CFTC and the UK FSA, made a number of recommendations, several of which have particular relevance to enforcement. The CFTC and FSA view this year’s enforcement conference as an important opportunity to advance some of the IOSCO Task Force recommendations relating to the sharing of enforcement trends and techniques and identifying legal and regulatory impediments to effective detection and deterrence of price manipulation.
Stephen J. Obie, CFTC’s Acting Enforcement Director stated:
“The CFTC and the UK FSA regulate the largest commodity futures markets in the world. It is our responsibility to ensure that our markets are free of fraud and manipulation which in today’s marketplace means working collaboratively with our foreign counterparts. We are pleased to provide a forum for the international regulatory community to join forces to combat commodity market manipulation and other market abuses, and to share information and expertise.”
Alexander Justham, UK FSA’s Director of Markets stated:
“Commodity markets today are increasingly interconnected and global in nature. As the IOSCO report recognized, international cooperation and robust enforcement are necessary responses to the challenges of globalization. We are pleased to co-chair this conference to carry forward the IOSCO recommendations and facilitate cooperation among members of the international regulatory community.”
R. David Gary
Last Updated: June 25, 2009