ARRANGEMENT 

THE UNITED STATES 

COMMODITY FUTURES 

TRADING COMMISSION 

THE OFFICE OF THE 

AGRICULTURAL FUTURES 

TRADING COMMISSION 

OF THAILAND 

REGARDING REGULATORY COOPERATION 

AND TECHNICAL ASSISTANCE 

March 16, 2006 
1. The United States Commodity Futures Trading Commission (CFfC) was created by the 

United States Congress as an independent agency with the mandate to supervise and oversee 

commodity futures and options markets in the United States. 

2. The Office of the Agricultural Futures Trading Commission of Thailand (AFfC), is the 

designated agency under the Agricultural Futures Trading Act, B.E. 2542 for the supervision, 

surveillance, regulation and development of agricultural futures and other applicable derivatives 

trading in Thailand. 

3. The CFfC and the AFfC (collectively the Authorities) are jointly committed to maintaining 

open, fair, efficient and sound futures and options markets; recognize that the development and 

maintenance of domestic legal and regulatory structures are essential to market integrity and 

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

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

basis for cooperation and the provision of technical assistance. The CFTC and the AFTC have 

reached the following understanding with respect to cooperation, consultation and the provision 

of technical assistance. 

CLAUSE I CONSULTATION REGARDING MATTERS OF MUTUAL INTEREST 

Section 1. General Principles 

1. This Arrangement Regarding Regulatory Cooperation and Technical Assistance 

(Arrangement) describes the intent of the Authorities and does not create lega11y binding 

obligations or supersede domestic law of either Authority. 

2. The Authorities recognize the desirability of providing assistance, as set forth in 

Clauses II and Ill, to each other pursuant to this Arrangement. The provision of any such 

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

resources. If assistance is outside the competency of junsdiction of an Authority then the 

Authority shall use its best efforts to provide assistance. Where the provision of assistance 

would be contrary to the public interest such assistance may be denied. 

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

options regulation related to the development and operation of futures and options markets on 

agricultural commodities. 

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 standards and conduct of business standards for the operation of futures businesses 

(brokers, dealers and markets), the development of clearance and settlement and other market 
systems, 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 

effective 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 markets and options markets, if applicable, and how those laws, rules and 

regulations are implemented and interpreted. 

CLAUSE II PROVISION OF TECHNICAL ASSISTANCE 

Section 1. Technical Assistance 

The CFTC intends to consult with and provide capacity building advice and assistance to 

the AFTC regulatory programs related to the development, administration, and operation of the 

agricultural futures and options markets in the Kingdom of Thailand. Such consultation should 

identify specific types of technical assistance the Authorities believe are desirable and 

reasonable. Technical assistance may include the provision of information and advice relating to 

the development of: 

a. Systems to improve and/or 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; ~ 

1. Systems for effective market surveillance and enforcement programs; 

j. Disclosure and other procedures and practices to inform and protect 

futures and options customers and market participants; and 

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k. Information on 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; 

Availability 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 AFTC personnel at the CFTC, 

conditioned upon the requisite legal authority to do so and the entering 

into of any necessary confidentiality agreements. 

Section 3. Availability 

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

resources. 

CLAUSE III COOPERATION 

Each Authority may, subject to Clause IV, Sections 2, 3, and 4 give assistance as to: 

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

business; 

b. The laws and regulations applicable to futures business; 

c. The Jaws and regulations applicable to futures exchanges and other types 

of markets; 

d. The oversight of futures exchanges by regulatory and market authorities; 

e. The prevention and detection of futures and options fraud ~other 

irregularities or unlawful activities in connection with the offer, purchase 

or sale of any futures or options contract; and 

f. The prevention and detection of market manipulation. 

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, ... ) 

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CLAUSE IV 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 and intend to abide by the same. 

Section 2. Permissible Uses of Information 

The requesting Authority may use non-public information and non-public documents 

furnished in response to a request for assistance under this arrangement solely for: the purposes 

set forth in the request for assistance, including ensuring compliance with the laws, regulations 

and/or requirements related to the request; and a purpose within the general framework of the use 

stated in the request for assistance, including conducting a civil or administrative enforcement 

proceeding, assisting in a criminal prosecution, or conducting any investigation for any general 

charge applicable to the violation of the provision specified in the request where such general 

charge pertains to a violation of the laws, regulations and/or requirements administered by the 

requesting Authority. The use may include enforcement proceedings which are public~ 

lf a requesting Authority intends to use information furnished under this Arrangement for 

any purpose other than those stated above, it must obtain the consent of the requested Authority. 

Section 3. Confidentiality 

Each Authority wiii keep confidential requests made under this Arrangement, the 

contents of such requests, and any matters arising under this Arrangement, including 

consultations between or among the Authorities, and unsolicited assistance. After consultation 

with the requesting Authority, the requested Authority may disclose the fact that the requesting 

Authority has made the request if such disclosure is required to carry out the request. 

The requesting Authority will not disclose non-public documents and information 

received under this Arrangement, except as contemplated by Clause IV, Section 2, or in response 

to a legally enforceable demand. In the context of a civil or administrative enforcementproceeding, disclosure may be made solely in such a proceeding to which the requesting 

Authority or the government of the requesting Authority is a party. In the event of a legally 

enforceable demand, the requesting Authority will notify the requested Authority prior to 

complying with the demand, and will assert such appropriate legal exemptions or privileges with 

respect to such information as may be available. The requesting Authority will use its best efforts 

to protect the confidentiality of non-public documents and information received under this 

Arrangement. 

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Section 4. Requests 

Requests for assistance under Clause III, procedures for making and executing such 

requests, permissible uses of information, confidentiality requirements, costs and other matters 

not explicitly included in this Arrangement wiii be addressed on a case-by-case basis. · 

Section 5. Official Contacts 

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

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

forth in Attachment A. 

CLAUSEV FUTURE ASSURANCES 

l. The Authorities plan to regularly review their efforts pursuant to this 

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

material additions or amendments to new United States and/or Thai futures and options laws take 

effect, the Authorities intend to consider whether this Arrangement should be supplemented or 

superseded. 

2. The Authorities intend to cooperate to the fullest extent permitted by applicable 

law and where relevant will work toward bringing applicable information sharing law into 

compliance with international benchmarks. 

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

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

4. This Arrangement is not intended to supersede the IOSCO Multilateral MOU or 

any other arrangement to which the Authorities are a party. 

CLAUSE VI EFFECTIVE DATE AND TERMINATION 

Section 1. Effective Date 

This Arrangement is effective from the date of its signing by the Authorities. 

Section 2. Termination 

This Arrangement may be terminated at any time by either Authority giving thirty days' 

written notice to the other Authority. If such notice is given, this Arrangement continues to have 

effect with respect to all requests for assistance under Clause III that are made before the· 

effective date of notification until the requesting Authority terminates the matter for which 

assistance was requested. 

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This Arrangement is executed in duplicate in Boca Raton, 

Florida on March 16, 2006. 

FOR THE 

UNITED STATES COMMODITY 

FUTURES TRADING COMMISSION: 

REUBEN JEFFER 

CHAIRMAN 

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FOR THE 

OFFICE OF THE AGRICULTURAL FUtuRES 

TRADING COMMISSION OF THAILAND: 

CHAIPAT SAHASAKUL 

SECRETARY-GENERAL 
ATIACHMENT 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 

e-mail: intemational@cftc.gov 

The Office of the Agricultural Futures Trading Commission designates as its contact official: 

Director 

Research and Development Department 

Office of the Agricultural Futures Trading Commission 

Level 15, CRC Tower, All Seasons Place 

87/2 Wireless Road, Lumpini, Patumwan 

Bangkok 10330 

Thailand 

Tel: 66 2 685 3250 

Fax: 66 2 685 3259 

e-mail: research@aftc.or.th 

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