Release: #3939-96

For Release: September 16, 1996



Washington, D.C. -- The Commodity Futures Trading Commission ("Commission") and the UK Securities and Investments Board ("SIB") today issued the "Final Report From the Co-Chairmen of the May 1995 Windsor Meeting to the Technical Committee of IOSCO."

The Final Report, which was written by the Commission and SIB as Co-Chairs of the Windsor Meeting, outlines the governmental and private sector initiatives which have been completed to implement the recommendations set forth in the May 1995 Windsor Declaration signed by futures market regulatory authorities from 16 jurisdictions. Those recommendations were intended to address key issues resulting from the failure of Barings Plc.

The Final Report concludes that significant concrete steps have been taken in a remarkably short period of time to implement the Windsor recommendations, including large exposure information sharing, market crisis procedures, enhanced transparency of market protection and procedures, and client asset protection measures. These measures will minimize the systemic effects of a market disruption and enhance existing regulatory safeguards.

The Final Report particularly notes the significance for greater regulatory cooperation resulting from the execution of the "Declaration on Cooperation and Supervision of International Futures Exchanges and Clearing Organizations" initially signed in March 1996 and signed to date by 15 international regulators.

The Final Report refers to and should be read in conjunction with other separate reports that have been released today by the International Organization of Securities Commissions ("IOSCO") detailing accomplishments within IOSCO, initiatives undertaken by individual jurisdictions which participated at the Windsor meeting, including the Commission, and accomplishments of the Futures Industry Association Global Task Force on Financial Integrity. These reports may be obtained from the IOSCO General Secretariat.

In connection with the release of the Final Report, Chairperson Brooksley Born stated:

The collapse of Barings Plc. and the events surrounding losses in the copper market by the Sumitomo Corporation underscore the increasingly global nature of derivatives markets. The international community has accomplished a great deal in the actions and initiatives taken to implement the Windsor Declaration. The Commission is hopeful that international market regulators will continue to display the high level of cooperation between and among governmental authorities and the private sector which made these achievements possible.