Release: 5129-05
For Release: October 17, 2005

U.S. Commodity Futures Trading Commission’s International Affairs Office Presents International Symposium and Training Program on Derivative Products, Market, and Financial Intermediaries

Chicago, Illinois – The U. S. Commodity Futures Trading Commission’s (CFTC) Office of International Affairs, in conjunction with the Federal Reserve Bank of Chicago, is hosting the 15^th annual meeting of international regulatory and market authorities to discuss issues relevant to the international derivatives markets. The meetings – to be held from October 17 through 21 – at the Federal Reserve Bank, are expected to draw 60 participants and 40 presenters and panelists from 30 countries, including: Australia, Canada (Manitoba, Ontario, and Quebec), China, the Czech Republic, Dubai, France, Germany, Hong Kong, Hungary, India, Indonesia, Ireland, Italy, Japan, Korea, Mexico, the Netherlands, Nigeria, Norway, Poland, Portugal, Singapore, Slovenia, Spain, Sweden, Taiwan, Thailand, Turkey, and the United Kingdom. The group represents more than 35 different markets and regulators, and also includes participants from the Chicago Federal Reserve Bank.

The meetings this week will be followed on October 24 by a separate intensive technical session to be held at the CFTC’s Chicago Regional Office, covering the CFTC’s regulatory programs.

Commenting on the program, CFTC Chairman Reuben Jeffery, III said:

“The CFTC welcomes this opportunity to host a forum attended by representatives from regulatory and market authorities from a diverse range of countries to exchange ideas as to how derivatives regulation the world over may better meet the new challenges and risks that face today’s markets. It is critically important that regulators and market authorities the world over engage in cooperative oversight of the world’s markets. The objective of these meetings is to provide the opportunity for regulators to exchange ideas on ways to reduce unnecessary regulatory burdens and to facilitate cross-border access while continuing to ensure customer and market protections in the global marketplace.”

CFTC Commissioners Walter Lukken and Michael Dunn, along with senior CFTC staff, executives from U.S. exchanges, the National Futures Association, and senior representatives from several foreign regulatory agencies and exchanges will engage in discussions and give presentations during the program that address a wide variety of regulatory topics. Several current topics will be addressed from both the regulatory and the industry perspective. Topics and questions to be discussed include:

• What is the appropriate ownership and governance structure for clearing organizations?
• Can organized exchanges be effective self-regulatory organizations?
• Should governments prescribe the composition of the Board of Directors of a for-profit derivatives exchange?
• The U.S. approach to anti-money laundering and its significance for cross-border trading.
• Identifying cross-border risks and developing strategies necessary to address them.
• What are the essential prerequisites for developing successful futures contracts?
• How derivative contracts should be designed--and monitored--to render them not susceptible to manipulation.
• How to design financial and commodity indexes to prevent manipulation.
• How does a cash market manipulation affect the futures markets?
• How clearing firms and regulators should address proprietary trading.
• Ethical dilemmas that confront regulators, practitioners, and market participants.
• Tools used by the CFTC in real-time enforcement investigations.
• Do hedge funds provide liquidity? Does hedge fund trading cause price volatility in futures markets?
• How can statutory regulators effectively use regulatory resources?

Media Contacts
Alan Sobba (202) 418-5080
R. David Gary (202) 418-5085
Office of External Affairs

Staff Contact
Myra Silberstein
Special Counsel
(202) 418-5443
Office of International Affairs