For Release: October 15, 2007
CFTC’s Office of International Affairs Hosts International Symposium and Training Program on Regulation of Derivative Products, Markets, and Financial Intermediaries
Chicago, IL – The U.S. Commodity Futures Trading Commission’s (CFTC) Office of International Affairs, in conjunction with the Federal Reserve Bank of Chicago, is hosting an annual meeting of international regulatory and market authorities to discuss issues relevant to the international derivatives markets.
“In this world of rapid globalization, we are faced with the challenge of how to promote sound regulatory principles and protect markets and consumers through regulatory coordination,” said CFTC Acting Chairman Walter Lukken. “The CFTC’s Annual International Symposium and Training Program provides the CFTC with the opportunity to share our experiences and collaborate with regulators from markets in various stages of development.”
The meetings are being held from October 15 through 19 at the Federal Reserve Bank, and are expected to draw more than 100 participants and panelists from more than 30 countries, including: the Bahamas, Canada, China, Czech Republic, Egypt, Ethiopia, France, Germany, Hong Kong, Hungary, India, Italy, Japan, Jordan, Korea, Malaysia, Mexico, the Netherlands, Nigeria, Pakistan, Poland, Qatar, Romania, Singapore, Spain, Switzerland, Taiwan, Thailand, United Arab Emirates, United Kingdom, and Uruguay.
CFTC Commissioners, along with senior CFTC staff, executives from U.S. exchanges, the National Futures Association, and senior representatives from several foreign regulatory agencies will engage in discussions and give presentations during the program that will address a wide variety of regulatory topics. Several current topics will be addressed from both the regulatory and the industry perspective. Among the topics and questions to be discussed are:
- What might the market structure and regulatory landscape look like in the next five to ten years?
- What are the concerns raised by hedge funds and other professionally managed funds participating in the markets…especially as they relate to maintaining market integrity and addressing systemic risk?
- How do the differences between regulatory systems based on core principles or a rule book impact the ability to deter abusive behavior and to develop an effective enforcement program?
- Why do some commodity futures contracts succeed while others fail? And, can derivative contracts be designed so as to not be susceptible to manipulation?
- How does a cash market manipulation affect the futures markets? How do you detect and deter such abuses?
- How prevalent is the practice of investors imitating the trading behavior of other traders in U.S. futures markets? Does this behavior have any impact on prices in various futures contracts?
- How should clearing firms and regulators address proprietary trading and the issue of protecting segregated customer funds?
The meetings this week will be followed on October 21, 2007, by a separate intensive technical session to be held at the CFTC’s Chicago Regional Office, covering the CFTC’s regulatory programs.
R. David Gary
Last Updated: October 12, 2007