Release: 3937-96

For Release: September 5, 1996

The CFTC Announces Further International Cooperation

Washington, D.C. -- The Commodity Futures Trading Commission ("Commission") today agreed with the Japanese Ministry of International Trade and Industry ("MITI") and the U.K. Securities and Investments Board ("SIB") to develop further their arrangements for international cooperation in the effective supervision of commodity futures markets.

Their discussions stemmed from recent events in the copper market, but focused on lessons for the commodity futures markets in general, and not on the specifics of past trading.

The three authorities will increase their collaborative work in the exchange of information. In particular, they agreed to cosponsor a discussion of the special issues arising in commodity futures markets. Countries which have, or are contemplating the establishment of, such a market will be invited to participate. Detailed arrangements will be settled shortly.

Commission Chairperson Brooksley Born stated:

The nearly 2 billion dollar copper trading loss by the Sumitomo Corporation has focused the attention of international market authorities on supervisory issues raised by physical delivery markets. Trading in physical delivery markets involving international commodities, international participants and in many cases, foreign delivery points can raise special market integrity and surveillance concerns. We welcome this opportunity for regulatory authorities to further international cooperative efforts at market supervision.