New Delhi: Commodity markets regulator FMC has signed an agreement with Securities Commission of Brazil to strengthen their respective regulatory system through mutual assistance and exchange of information.
“We have signed a memorandum of understanding (MoU) with Securities Commission of Brazil (Comissao de Valores Mobiliarios) to share with each other the information and assistance for capacity building,” Forward Markets Commission (FMC) member Rajeev Aggarwal said.
The MoU, which was signed on 26 January, will facilitate the mutual cooperation between FMC and the Brazilian regulator and help them perform the entrusted responsibility of enforcing and securing compliance under the rules in their respective jurisdiction.
According to the agreement, “To extent possible each authority may give assistance with regard to the prevention and detection of market manipulation.”
The two regulators have agreed to extend help to prevent and detect futures and options fraud and other irregularities.
They have also agreed for a periodic consultation on matters of mutual interest to promote cooperation and market integrity and to further the protection of futures and options market participation.
In 2006, FMC had entered into a similar agreement with the US regulator Commodity Futures Trading Commission (CFTC) as well as with China’s Commodity Futures Trading Commission (CFTC).