MEMORANDUM OF UNDERSTANDING BETWEEN 

THE UNITED STATES COMMODITY FUTURES TRADING COMMISSION AND 

THE BRAZIL COMISSAO DE VALORES MOBILIARIOS 

ON MUTUAL ASSISTANCE AND EXCHANGE OF INFORMATION 

The United States Commodity Futures Trading Commiss!on and 

the Brazil Comissao de Valores MobiliArios acknowledge the 

importance of ensuring compliance with and enforcement of the · commodity futures and commodity options laws, rules and 

regulations of the United States and Brazil. In light of the 

increasing international activity in the commodity futures and 

commodity options markets, and the need for mutual cooperation in 

order to facilitate the performance of their respective duties 1 

the Commodity Futures Trading Commission and the Comissao de 

Valores MobiliArios have reached the following understanding: 

ARTICLE 1. Definitions 

1. For the purposes of this Memorandum of Understanding 

(Memorandum} : 

ARTICLE 2. 

a. "Authority" means: 

(i} the Commodity Futures Trading Commission of 

the United States (CFTC); and 

(ii) the Comissao de Valores Mobiliarios of Brazil 

(CVM)' 

b. "requested Authority" means an Authority to whom a 

request under this Memorandum is made. 

c. "requesting Authority" means an Authority making a 

request under this Memorandum. 

d. "person .. means a natural person, unincorporated 

association, partnership, body corporate, 

government or political subdivision, agency or 

instrumentality of a government. 

General Principles 

1. This Memorandum sets forth a statement of intent of the 

Authorities regarding the exchange of information 

.between the Authorities. 

2. Nothing in this Memorandum is intended to limit the 

powers of the CFTC under the laws of the United States 

or the powers of the CVM under the laws of Brazil to 

investigate or gather information or to take measures 

otherwise than as provided in this Memorandum to obtain 

information, whether or not in connection with a 
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request under this Memorandum. 

3. The provisions of this Memorandum shall not give rise 

to the right on the part of any person other than the 

Authorities, directly or indirectly, to obtain, 

suppress or exclude any evidence or to challenge the 

execution of a request for assistance under this 

Memorandum. -

4. Assistance under this Memorandum may be denied by the' 

requested Authority on grounds of public interest. 

ARTICLE 3. Scope of Assistance 

1. The requested Authority will provide to the requesting 

Authority the fullest mutual assistance, within the 

framework of this Memorandum, in response to any 

request concerning matters within the jurisdiction of 

the requesting Authority. 

2. In order to comply with any request for assistance 

under this Memorandum, the requested Authority will use 

all the means provided under the law of its 

jurisdiction to investigate a violation of any law, 

rule or regulation within the jurisdiction of the 

requesting Authority, or to obtain information from any 

person likely to have information in connection with 

the facts contemplated by the request. 

3. The Authorities recognize that they may not in all 

circumstances possess the legal authority to provide 

the assistance contemplated in this Memorandum. 

Subject to such limitations of legal authority, the 

Authorities will use all reasonable efforts to obtain 

the necessary authorization to provide the assistance 

described in this Memorandum. 

ARTICLE 4. Requests for Assistance 

1. Requests for assistance must be made in writing and 

addressed to the requested Authority's contact 

officer(s) listed in Appendix A. 

2. The request for assistance shall specify the following: 

a. the information sought by the requesting 

Authority; 

b. a general description of both the matter which is 

the subject of the request and the purpose for 

which the information is sought; ~ 

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c. the person(s) suspected or believed by the 

requesting Authority to possess the information 

sought, or the places where such information may 

be obtained, if the requesting Authority has such 

knowledge; 

d. the laws, rules or regulations pertaining to the 

matter which is the subject of the request; and 

e. the desired time period for the reply and, where· 

appropriate, the urgency thereof. 

3. In the event of urgency, requests for assistance and 

replies to such requests shall be effected by summary 

procedures or by means of communication other than the 

exchange of letters, provided that they are confirmed 

in the manners prescribed in paragraphs 1 and 2 of this 

Article. 

4. Requests for assistance may be denied where the request 

does not comply with the provisions set forth in this 

Memorandum. 

ARTICLE 5. Execution of Requests 

1. If the requesting Authority specifies in the request: 

a. the testimony or statement shall be taken of any 

person who has participated directly or indirectly 

in the matters specified in the request, or who 

has information relating to those matters; 

b. the production of any relevant document shall be 

required; 

c. testimony shall be taken under oath; 

d. a verbatim transcript of the testimony shall be 

made; 

e. subject to the approval of the requested 

Authority, 

(i) a designated representative of the requesting 

Authority may be present when a statement or 

testimony is taken; and 

(ii) such representative may prescribe specific 

questions to be asked, or may, if permitted 

by the law of the jurisdiction of the 

requested Authority, ask questions directly ~ 

of the person. \.J::J 

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2. A person whose testimony or statement is taken pursuant 

to a request shall have the right to have counsel 

present during the taking of the testLmony or 

statement. 

3. The testimony or statement of persons will be taken in 

the same manner and to the same extent as in 

investigations or other proceedings in the jurisdiction 

of the requested Authority. Notwithstanding any other 

provision of this Memorandum, any person giving · testimony or a statement as a result of a request made 

under this Memorandum will be entitled to all of the 

rights and protections of the laws of the jurisdiction 

of the requested Authority. Assertions made at the 

time the testimony or statement is taken regarding 

other rights and privileges arising exclusively 

pursuant to the law of the jurisdiction of the 

requesting Authority shall be preserved for 

consideration by adjudicatory bodies in the 

jurisdiction of the requesting Authority. 

4. If it appears that responding to a request for 

assistance under this Memorandum will involve 

substantial costs being incurred by the requested 

Authority, the requested Authority and the requesting 

Authority will establish a cost sharing arrangement 

before continuing to respond to such request for 

assistance. 

ARTICLE 6. Permissible Uses of Information 

1. The requesting Authority may use the information 

furnished solely: 

a. for purposes stated in the request, including 

ensuring compliance with or enforcement of the 

law, rule or regulation specified in the request 

and related provisions; and 

b. for purposes within the general framework of the 

use stated in the request, including conducting a 

civil or administrative enforcement proceeding, 

assisting in a self-regulatory compliance 

proceeding, assisting in a criminal prosecution, 

or conducting any investigation related thereto 

for any general charge applicable to the violation 

of the law, rule or regulation specified in the 

request. 

2. To use tQe information furnished for any purpose other 

than those stated in paragraph 1 of this Article, the 

requesting Authority must first inform the requested ~ 

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Authority of its intention and provide the requested 

Authority an opportunity to oppose the utilization. If 

the requested Authority opposes the utilization, the 

information may be used only under the conditions 

imposed by the requested Authority. If use of the 

information is opposed by the requested Authority, the 

Authorities agree to consult pursuant to Article 8 

concerning the reasons for the refusal and thecircumstances under which use of the information might 

otherwise be allowed. 

ARTICLE 7. Confidentiality 

1. Each Authority shall keep requests made under the 

Memorandum, the contents of such requests and any other 

matters arising during the operation of this 

Memorandum, including consultations between the 

Authorities, confidential to the extent permitted by 

law. However, disclosures that are absolutely 

necessary to carry out the requests are permitted, and 

confidentialitY may be waived by mutual agreement of 

the Authorities. 

2. The requesting Authority shall keep confidential to the 

extent permitted by its law any information received 

pursuant to this Memorandum, unless it is disclosed in 

accordance with Article 6. 

3. Except as contemplated by Article 6, the requesting 

Authority shall not disclose the information to any 

other person and shall use its best efforts to ensure 

that it is not obtained by any other person. However, 

unless otherwise agreed, if such information is 

obtained by a public authority, the requesting 

Authority shall use its best efforts to ensure that 

such information is not used by that public authority 

in any way that involves disclosure to any other 

person. 

4. The requesting Authority will notify the requested 

Authority of any legally enforceable demand for 

information prior to complying with the demand and will 

assert such appropriate legal exemptions or privileges 

with respect to such information as may be available. 

5. As soon as the requesting Authority has terminated the 

matter for which assistance has been requested under 

this Memorandum, it shall return to the requested 

Authority, to the extent permitted by the law of the 

jurisdiction of the requesting Authority, all documents 

and copies thereof not already disclosed in proceedings~ 

referred to in Article 6. Other material disclosing ;S. 

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the contents of such documents also shall be returned, 

other than material that is generated as part of the 

deliberative or internal analytical process of the 

requesting Authority, which may be retained. 

ARTICLE 8. Disputes and Consultations 

1. The Authorities will keep the operation of this 

Memorandum under continuous review and will consult 

with a view to improving its operation and resolving. 

any matters that may arise. In particular, the 

Authorities will consult upon request in the event of: 

a. a refusal by one Authority to comply with a 

request for information on the public interest 

grounds set forth in paragraph 4 of Article 2; 

b. a change in market or business conditions or in 

the legislation governing matters within the 

jurisdiction of either Authority, or any 

difficulty which may make it necessary to amend or 

extend this Memorandum in order to achieve its 

purposes; or 

c. a dispute regarding the meaning of any terms used 

in this Memorandum. 

2. The Authorities may agree on such practical measures as 

may be necessary to facilitate the implementation of 

this Memorandum, including the waiver of any of its 

requirements. 

ARTICLE 9. Unsolicited Assistance 

l. To the extent permitted by the laws and regulations of 

its jurisdiction, each Authority will use reasonable 

efforts to provide the other Authority with any 

information it discovers which gives rise to a 

suspicion of a breach, or anticipated breach, of the 

laws or regulations of the other Authority. 

ARTICLE 10. Effective Date 

1. All prov~s~ons of this Memorandum not requiring 

adoption of domestic implementing legislation shall 

become effective immediately upon signing by-both 

Authorities. 

2. All provisions of this Memorandum requiring adoption of 

domestic implementing legislation shall become 

effective upon notification that such implementing ~ 

legislation and any necessary rules and regulations o5 

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have been adopted. 

ARTICLE 11. Termination 

1. This Memorandum shall continue to have effect unless 

terminated by either Authority by giving 30 days 

advance written notice to the other Authority that this 

Memorandum is no longer to have effect. If such notice 

is given, this Memorandum will continue to have effect 

with respect to all requests for assistance which are· 

made before the effective date of notification until 

the requesting Authority terminates the matter for 

which assistance was requested. 

Signed at Washington, DC, this 12th day of April, 1991. 

Wendy L. 

Chairman 

Commodity Futures Trading 

Commission 

I 

Ary Oswaldo Mattos Filho 

President 

Comissao de Valores 

Mobilic'irios 

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