Press Release

 

1.       A Memorandum of Understanding was signed between the Forward Markets Commission and the United States Commodity Trading Commission (CFTC) on 18th October 2006 at Mumbai. Mr. S. Sundareshan, Chairman, FMC, India and Mr. Reuben Jeffery III, Chairman, CFTC, USA signed the MOU in a ceremony organized at Mumbai.

 

2.       The MOU seeks to provide for -

 

Ø      Consultation on matters of mutual interest in order to promote cooperation and market integrity, and to further the protection of futures and options market participants.

 

Ø      Sharing of information on each others laws, rules and regulations pertaining to futures markets and options market, and how those laws, rules and regulations pertaining to futures markets and options markets, and how those laws, rules and regulations are implemented and interpreted.

 

Ø      Consultation and providing for issues relating to risk management, designing of contracts, clearing and settlement mechanism and providing trading programmes, etc.

 

Ø      The MOU also seeks to provide for cooperation in various areas such as –

 

a.      The granting of licenses, waivers, or exemptions for the conduct of futures business;

b.     The laws and regulations applicable to futures business;

c.      The laws and regulations applicable to futures exchanges and other types of markets;

d.      The oversight of futures exchanges by regulatory and market authorities;

e.      The prevention and detection of futures and options fraud and other irregularities or unlawful activities in connection with the offer, purchase or sale of any futures or options contract; and

f.      The prevention and detection of market manipulation

 

 

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Dated the 18th October, 2006

Forward Markets Commission

                                                    ‘Everest’, 3rd Floor,

                                                    100, Marine Drive,

                                                         Mumbai-400 002