FMC clinches with US commodity regulator
Commodity market regulator, Forward Markets Commission (FMC) and the US Commodity Trading Commission (CFTC) have signed an MoU here on Wednesday, to promote co-operation and market integrity, and protect interests of the futures and options market...
By TNN |
MUMBAI: Commodity market regulator, Forward Markets Commission (FMC) and the US Commodity Trading Commission (CFTC) have signed an MoU here on Wednesday, to promote co-operation and market integrity, and protect interests of the futures and options market participants.
S Sundareshan, chairman, FMC, and Reuben Jeffery III, chairman, CFTC, USA signed the MoU in a ceremony organised here. The MoU would facilitate consultation on matters of mutual interest.
According to a release from FMC, the MoU would also assist sharing of information on each others laws, rules and regulations pertaining to futures markets and options market, and how they are implemented and interpreted.
Other issues related to risk management, designing of contracts, clearing and settlement mechanism and providing trading programmes would also be provided for.
The agreement also seeks to provide for co-operation in other areas including the granting of licenses, waivers, or exemptions for conducting futures business, laws and regulations applicable to futures trading as well as exchanges and other types of markets.
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Issues like oversight of futures exchanges by regulatory and market authorities, prevention and detection of fraud and other irregularities in the transactions of any futures or options contract and the prevention and detection of market manipulation would also be areas of focus.Currently, foreign investors are not allowed to trade in Indian futures, and Indian investors don’t have unrestricted access to foreign exchanges.
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