CFTC, British agency to expand cross-border oil market surveillance

The US Commodity Futures Trading Commission and Britain’s Financial Services Authority have agreed to strengthen cross-border supervision of energy markets, the chairmen of the two countries’ agencies announced.

The agreement builds on the agencies’ existing cooperative efforts and will enhance sharing of information under a 2006 CFTC-FSA arrangement on linked contract, CFTC Chairman Gary G. Gensler and FSA Chief Executive Lord Adair Turner jointly said on Aug. 20.

They said that the strengthened surveillance of linked energy contracts, where appropriate, will include enhanced direct access rights to trade execution and audit trail data, mutual on-site visits of exchange operators, sharing of exchange regulations and notices and of disciplinary notices, and a framework to consider coordinated emergency actions.

“I believe that we must effectively utilize all existing powers to ensure that futures markets remain free of manipulation, fraud, or other market abuses,” Gensler said. “Achieving this goal requires a coordinated international response. The CFTC will work closely with the [FSA] to respond to these challenges in a coordinated manner.”

In a separate announcement, the CFTC and US Securities and Exchange Commission jointly said that they would hold joint public meetings in early September to discuss harmonizing market regulation. cording to the BLM field office. They noted that US President Barack H. Obama asked on the two agencies in June to recommend changes to their statutes and regulations which would eliminate differences with respect to similar types of financial instruments.

The agencies said that the first meeting on Sept. 2 will be at the CFTC while a second, on Sept. 3, will be at the SEC.

Contact Nick Snow atnicks@pennwell.com