Enhancement of Information Sharing Between ICE Futures Europe, the CFTC and the FSA
In Depth
It was announced on 29 May 2008 that ICE Futures Europe, the US Commodity Futures Trading Commission (CFTC) and the Financial Services Authority (FSA) have concluded an expanded information sharing agreement for the surveillance of energy commodity contracts with US delivery points, including the West Texas Intermediate (WTI) contracts that trade on ICE Futures in London.
The expanded information sharing agreement will be subject to the existing memorandum of understanding (MOU) between the FSA and the CFTC signed in December 2006. According to the CFTC, “the agreement will enhance the amount and quality of the information the CFTC receives regarding crude oil trading in the U.K. and will enhance the CFTC’s already vigorous surveillance activity”.
The key provisions of the new information sharing agreement are as follows:
- Expanded information sharing to provide the CFTC with daily large trader positions in the UK-listed WTI crude oil contract
- Extended trader information sharing to provide crude oil trading data for all contract months in the WTI crude oil contract
- A commitment to provide trader information to permit more detailed identification of market end users
- A commitment to provide modified data formatting so trading information can be seamlessly integrated into the CFTC's surveillance system
- In addition to the established position management programme that the FSA currently requires of ICE Futures Europe, notification to the CFTC by ICE Futures Europe when traders exceed position accountability limits in the WTI crude oil contract that have been established by domestic contract markets
Click on the links below to read the press releases from ICE Futures Europe and the CFTC:
