JOINT STATEMENT BETWEEN 

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THE UNITED STATES COMMODITY FUTURES TRADING COMMISSION AND 

THE COMMODITIES' EXCHANGES COMMISSION OF THE MINISTRY 

OF TilE RUSSIAN FEDERATION FOR ANTIMONOPOLY POLICY AND 

SUPPORT OF ENTREPRENEURSHIP 

REGARDING COOPERATION, CONSULTATION AND 

THE PROVISION OF TECHNICAL ASSISTANCE 

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The United States Commodity Futures Trading Commission (CFTC) and the Commodities' 

Exchanges Commission of the Ministry of the Russian Federation for Antimonopoly Policy and 

Support of Entrepreneurship (CEC) (collectively the Authorities), share the goal ofbuilding and 

maintaining open, fair, efficient and soimd futures and options markets; recognize that the 

development of effective domestic legal and regulatory structures is essential to market integrity 

and investor protection; believe that international cooperation can facilitate the development and 

effective operation of futures and options markets; and desire to establish a mutually acceptable 

basis for cooperation, consultation and the provision of technical assistance. The CFTC and the 

CEC have reached the following understanding with respect to cooperation, consultation, and the 

provision of technical assistance. 

CLAUSE I CONSULTATION REGARDING MATIERS OF MU1UAL INTEREST 

Section 1. General Principles 

1. This Joint Statement on Technical Assistance (Statement) is a statement of the 

intent of the Authorities and does not create legally binding obligations on the Authorities or 

supersede domestic law. 

2. The Authorities recognize the need and desirability of providing assistance, as set 

forth in Clauses ll and ill, to each other pursuant to this Statement. The provision of any such 

assistance should be consistent with the domestic laws of the Authorities and the availability of 

resources. Where the provision of assistance would be contrary to the public interest of an 

Authority, such assistance may be denied. 

3. The Authorities intend to engage in a dialogue on all aspects of futures and 

options regulation and on the development and operation of their futures and options markets. 

Section 2. Consultation 

The Authorities intend to consult periodically about matters of mutual interest in order to 

promote .cooperation and market integrity, and to· further the protection of futures and options 

market participants. Such consultation may cover, among other things, the development of 

prudential and conduct of business standards for the operation of futures businesses (brokers, 

dealers and markets), the evolution of clearance and settlement and other market systems, the 

execution of market oversight, and the administration of the Authorities' futures and options 
laws, rules, and regulations. The purpose of such consultation is to assist in the development of 

approaches to strengthening domestic and international futures and options markets. 

Section 3. Information Sharing 

The Authorities intend to share information· on each other's laws, rules and regulations 

pertaining to futures and options markets, if applicable, and how those laws, rules and 

regulations are implemented and interpreted. · 

CLAUSE II PROVISION OF TECHNICAL ASSISTANCE FOR THE DEVELOPMENT OF 

THE FEDERATION OF RUSSIA FUTURES AND OPTIONS MARKETS 

Section 1. Technical Assistance 

The CFfC intends to consult with and provide advice to the CEC for the development, 

administration, and operation of the futures and options markets in the Federation of Russia. 

Such consultation should identify specific types of technical assistance the Authorities· believe 

are desirable and reasonable. The technical aSsistance may include the training of personnel as 

well as the provision of information and advice relating to the development of: 

a. Systems to promote the risk management, price discovery and hedging 

functions of markets; 

b. Futures and options products and the basics of designing contracts not 

readily susceptible to manipulation; 

c. Order handling systems; 

d. Trade recording and comparison systems; 

e. Quotation and transaction data transmission systems; 

f. Clearance and settlement mechanisms; 

g. · Regulatory requirements and best practices relating to market 

professionals, products and markets; 

h. Systems and related regulatory mechanisms relating to financial 

surveillance; 

i. Systems for effective market surveillan.ce and enforcement programs; 

J. Disclosure and other procedures and practices to protect futures and 

options customers and market participants; and 

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k. Information on optimal levels of transparency. 

Section 2. Specific Technical Assistance 

Specific technical assistance may be provided in the following manner: 

a 

b. 

c. 

d. 

Comment by CFTC staff on draft laws and regulations; 

A vail ability of CFTC staff and other relevant experts to provide 

consultation regarding futures and options markets; 

General training sessions concerning futures and options regulation; and 

Internship programs of short duration for CEC personnel at the CFTC, 

conditioned upon entering into any necessary confidentiality agreements. 

Section 3. Availability 

The Authorities recognize that specific technical assistance is 'subject to the availability of 

resources and domestic authorizing legislation. 

CLAUSE Til COOPERATION 

Each Authority may, subject to ClauseN, Section 2, give assistance as to: 

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

business; 

b. -The observance of the laws and regulations applicable to futures business; 

c. The observance of the laws and regulations applicable to futures 

exchanges and other types of markets; 

d. The observance of the regulations of futures exchanges by their members 

or other market participants; and · 

e. the. prevention and detection of futures and options fraud and other 

irregularities in connection with the offer, purchase or sale of any futures 

or options contract. 

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CLAUSEN OPERATIONS 

Section 1. Laws, Rules and Requirements 

The Authorities have exchanged general information on the laws, rules and requirements 

applicable to the confidentiality and use of information. · 

Section 2. Requests 

Requests for assistance under Clause Ill, procedures.formaking and executing such 

requests, permissible uses of information, confidentiality requirements and other matters not 

explicitly included in this Statement should be addressed on a case-by-case basis. 

Section 3. Official Contacts 

To further ensure the effective operation of this Statement, and· to facilitate 

communication between the Authorities, the Authorities hereby designate the contact officials set 

forth in Attachment A. 

CLAUSEV FUTURE UNDERSTANDINGS 

1. The Authorities plan to regularly review their efforts pursuant to this Statement 

with a view toward improving communication between them. In this regard, when new United 

States and/or Federation of Russia futures and options laws take effect, the Authorities intend to 

consider whether this Statement should be supplemented or superseded. 

2. The Authorities intend to move toward more formal information sharing 

arrangements after they have some experience with the operation of this Statement. 

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THIS JOINT STATEMENT ON TECHNICAL ASSISTANCE is done in duplicate in 

Washington, DC on December 11,2000, in the English and Russian languages. 

FOR THE 

UNITED STATES COMMODITY 

FUTURES TRADING COMMISSION: 

CHAIRMAN 

FOR THE 

COMMODITIES' EXCHANGES COMMISSION 

OF THE MINISTRY OF THE RUSSIAN 

FEDERATION FOR ANTIMONOPOLY POLICY 

AND SUPPORT OF ENTREPRENEURSHIP: 

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AITACHMENT A 

The United States Commodity Futures Trading Commission designates as its contact official: 

Director 

Office of International Affairs 

Commodity Futures Trading Commission 

3 Lafayette Centre 

1155 21st Street~ NW 

Washington, DC 20581-0001 

USA 

Tel: 202 418 5645 

Fax: 202 418 5548 

The Commodities, Exchanges Commission of the Ministry of the Russian Federation for 

Antimonopoly Policy and Support of Entrepreneurship designates as its contact official: 

Head 

Department on Commodity Exchanges 

and Market for Standard Contracts Activities 

Commodities, Exchanges Commission 

of the Ministry of the Russian Federation 

for Antimonopoly Policy and 

Support of Entrepreneurship 

11, Sadovo-Kudrinskaya UL. 

Moscow 123808 

RUSSIA 

Tel: 7 095 252 7162 

Fax: 7 095 254 3483 

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