Commodity regulators in the U.S. and U.K. have said they will enhance cross-border surveillance of energy-futures markets. The U.K. Financial Services Authority and U.S. Commodity Futures Trading Commission have agreed on a list of steps toward greater regulatory cooperation, including enhanced access to trading data, mutual on-site visits to exchange operators and sharing of exchange regulations and disciplinary notices, as well as a framework to consider the coordination of emergency action. A cross-border approach is believed to be essential for the U.S. regulator to stamp out excessive speculation without driving traders to less-stringent marketplaces overseas, said The Wall Street Journal. “We must effectively utilize all existing powers to ensure that futures markets remain free of manipulation, fraud or other market abuses,” said Gary Gensler, chairman of the CFTC. Regulators will “continue to pursue all means to maintain fair, orderly and efficient markets, both nationally and internationally,” said FSA Chairman Adair Turner. The U.S. commodity watchdog said it plans to impose additional regulatory oversight on Futures Europe, an electronic exchange for global energy markets. The exchange operator agreed to provide the regulator with trading records of all contracts that are linked to U.S. contracts. The CFTC was also granted access to conduct on-site visits of the London-based exchange.
U.S. and U.K. Boost Oil-Trading Oversight
The U.S. and U.K. have agreed to taking steps toward greater regulatory cooperation.
August 21, 2009