Release Number 8619-22

CFTC Recognizes the UK FCA for Cross-Border Enforcement Cooperation

November 03, 2022

— The Commodity Futures Trading Commission today recognized and expressed appreciation to the UK Financial Conduct Authority (UK FCA) for taking actions that demonstrated critical cross-border cooperation to ensure the integrity of U.S. markets and markets abroad.

The UK FCA diligently pursued and obtained information from United Kingdom-based traders on behalf of the CFTC during an investigation of certain crude oil trading on a U.S. derivatives exchange, which is a CFTC designated contract market. On November 2, the Court of Appeal of England and Wales refused permission for those traders to proceed with a judicial review of the UK FCA’s decision to assist the CFTC.

“In order to fulfill its mission of promoting the integrity, resilience, and vibrancy of the U.S. derivatives markets, the CFTC must be able to obtain information from individuals and entities who are trading on U.S. markets,” said Gretchen Lowe, Acting Director of the Division of Enforcement. “U.S. derivative markets are available worldwide, and the Court of Appeal of England and Wales’ decision shows traders cannot hide from regulatory oversight just because they are overseas. The CFTC is grateful for the FCA’s efforts to secure this result and its commitment to cross-border enforcement cooperation.”

Derivatives and securities transactions are increasingly cross-border in nature. As such, international cooperation is key to ensuring the integrity of the markets in the U.S. and throughout the world. The CFTC relies on the cooperation of its fellow domestic and foreign derivatives regulators to effectively investigate violations of the Commodity Exchange Act that involve cross-border conduct or misconduct by market participants located abroad.

The UK FCA has been assisting the CFTC Division of Enforcement to obtain records of certain traders located in the UK who have refused to produce records requested by the UK FCA on behalf of the CFTC. The traders have challenged the UK FCA’s authority to obtain the records in assistance to the CFTC. This ruling ends those traders request to proceed with a judicial review of the UK FCA’s decision to assist the CFTC.

For additional information, see the UK FCA’s press release