Release on: October 16, 2003
U.S. COMMODITY FUTURES TRADING COMMISSION ANNOUNCES PARTICIPATION IN IOSCO MULTILATERAL ENFORCEMENT MOU
IOSCO MOU is the First Worldwide Multilateral Enforcement Cooperation Arrangement Among Securities and Derivatives Regulators
WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) announced today that it is a signatory to the multilateral Memorandum of Understanding concerning Consultation, Cooperation and the Exchange of Information of the International Organization of Securities Commissions (IOSCO). Today’s announcement coincides with IOSCO’s statement listing the first group of 24 signatories to this ground breaking international enforcement initiative.
The IOSCO MOU provides for the exchange of essential information to investigate cross-border securities and derivatives violations, including the most serious offenses, such as manipulation, insider trading and customer fraud. The MOU enables regulators to share critical information, including bank, brokerage, and client identification records and to use that information in civil and criminal prosecutions.
CFTC Chairman James E. Newsome commented:
“The CFTC is proud to participate in this important international enforcement initiative. We have actively assisted in the development of the MOU and are pleased by the strong support it has received from IOSCO members. Such arrangements are critical to ensuring the integrity of securities and derivatives trading in a global marketplace.”
The IOSCO MOU sets a new international benchmark for cooperation critical to combating securities and derivatives violations. The CFTC has been a pioneer in the development and use of international information sharing arrangements. The CFTC has 21 formal bi-lateral enforcement information sharing arrangements with foreign derivatives regulators, which have been critical to the success of its international enforcement activities.
The IOSCO MOU will enhance the CFTC’s ability to cooperate and share enforcement-related information with its counterparts in other countries by providing an efficient and effective mechanism to approve new partners and ensure compliance with the MOU. Under the MOU procedures, those IOSCO members that are unable to meet the MOU requirements today cannot become signatories, but still may express their specific commitment to obtaining the necessary legal authority.
Although the arrangement was first agreed to last year, IOSCO publicly announced the IOSCO MOU today in recognition of the MOU’s role over the past year in successfully encouraging securities regulators around the world to enhance their abilities to cooperate and share enforcement-related information with their counterparts in other countries.
A list of the IOSCO MOU signatories is attached.
The following CFTC Division of Enforcement staff members participated in the development and implementation of the IOSCO MOU: Jacqueline Hamra Mesa, Assistant Chief Counsel; and Phyllis J. Cela, Chief Counsel
CFTC Division of Enforcement Media Contact:
Phyllis J. Cela, Chief Counsel
CFTC Division of Enforcement
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List of Signatories to the IOSCO Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information
(16 October 2003)
Alberta Securities Commission
Australian Securities and Investments Commission
British Columbia Securities Commission
Commission des opérations de bourse
Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
Capital Market Commission
Securities and Futures Commission
Hungarian Financial Supervisory Authority
Securities and Exchange Board of India (SEBI)
Commissione Nazionale per le Società e la Borsa
Jersey Financial Services Commission
Lithuanian Securities Commission
Comisión Nacional Bancaria y de Valores
New Zealand Securities Commission
Ontario Securities Commission
Polish Securities and Exchange Commission
Comissão do Mercado de Valores Mobiliários
Commission des valeurs mobilières du Québec
Comisión Nacional del Mercado de Valores
Financial Services Board
Capital Markets Board
Financial Services Authority
UNITED STATES OF AMERICA
United States Commodity Futures Trading Commission (CFTC)
UNITED STATES OF AMERICA
United States Securities and Exchange Commission (SEC)