For Release: November 3, 2008
CFTC and the Japan Ministry of Economy, Trade and Industry and the Japan Ministry of Agriculture, Forestry and Fisheries Sign Arrangement for Enhanced Cooperation and Collaboration
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) and the Japan Ministry of Economy, Trade and Industry (METI) and the Japan Ministry of Agriculture, Forestry and Fisheries (MAFF) today announced that the agencies have agreed to enhance cooperation and collaboration and to consult on a regular basis. These measures are designed to promote investor protection and market integrity, and to enhance the supervision of physical commodity futures trading occurring on a cross-border basis between Japan and the U.S.
“Japan is a major participant in the world’s commodity markets and many of the leading U.S. futures firms are also major participants in Japan’s markets as well. It is critical that regulatory authorities in our respective jurisdictions work in partnership to oversee markets that are so closely linked together,” said CFTC Acting Chairman Walter Lukken. “While the ties between the CFTC and METI and MAFF are already strong, today’s arrangement reinforces the ongoing collaborative efforts between our respective countries, including the CFTC’s training programs in the areas of intermediary oversight, surveillance, and clearing. I look forward to forging an even stronger cooperative relationship as we move forward.”
The heads of METI and MAFF, in a joint statement, noted that
“Because of the increase of cross-border trading, the cooperation between the regulators with different jurisdictions becomes important today. The July 2008 leader’s statement of the G8 Hokkaido Toyako summit welcome the efforts taken by relevant national authorities for increased transparency of commodity futures markets and encourage further cooperation between them. In this regard, we are very pleased to announce today the signing of the Terms of Reference with CFTC.”
Today’s arrangement has several objectives:
• Identify regulatory issues/developments of mutual concern in the derivatives markets;
• Build on existing arrangements to improve cooperation, and the exchange of information in enforcement matters involving cross-border derivatives trading; and
• Consult regularly on regulatory and market issues.
R. David Gary
Last Updated: November 3, 2008