For Release:June 19, 1996
COMMODITY FUTURES TRADING COMMISSION WELCOMES
THE EXECUTION BY BRAZIL REGULATORY AGENCY OF
THE DECLARATION ON COOPERATION AND SUPERVISION OF
INTERNATIONAL FUTURES EXCHANGES AND CLEARING ORGANISATIONS
The Commodity Futures Trading Commission ("Commission") welcomed the signing today of the Declaration on Cooperation and Supervision of International Futures Exchanges and Clearing Organizations ("Declaration") by the Brazilian Comissao de Valores Mobiliarios ("CVM"). The signing by the CVM, a signatory to the May 1995 Windsor Declaration, thus brings to 15 the number of international futures regulators who have signed the Declaration, which originally had been executed in Boca Raton, Florida on March 15, 1996.
The signing of the Declaration follows the earlier signing of the complementary Memorandum of Understanding and Agreement ("MOU") by the Bolsa de Mercadorias & Futuros ("BM&F") earlier this month. The BM&F ranks among the top 5 derivatives exchanges in the world.
John E. Tull, Jr., Acting Chairman of the Commission, and Francisco Augusto da Costa e Silva, Chairman of the CVM stated:
The Declaration and MOU are at the core of developments contemplated in the recommendations reached at the Windsor, England meeting convened in May 1995. The agreements establish mechanisms whereby the occurrence of certain agreed upon triggering events affecting an exchange member's financial resources or positions will prompt the sharing of information under the Declaration and MOU. By signing the Declaration, we as regulators demonstrate our desire to implement effective measures to enhance market supervision and the international safety net for financial markets.
As most recently confirmed by the events surrounding the Sumitomo Corporation's activities in world copper markets, we operate in a global market environment in which the activities on one market can affect markets and firms in other jurisdictions. The effective regulation of futures markets and the prudential regulation of firms under these circumstances requires a partnership between markets and their regulators, both domestically and on a cross-border basis.
Acting CFTC Chairman Tull is particularly pleased that Mr. Costa e Silva, Chairman of both the Brazilian Comissao de Valores Mobiliarios and the Council of Securities Regulators of the Americas, used the occasion of his visit to the CFTC to announce the CVM's decision to join in the partnership of world futures exchanges, clearing organizations and regulatory authorities manifested in the Declaration.