MEMORANDUM 

'\'~. OF 

UNDERSTANDING . 

> e: . • • f ~ • • "'· f' • • • - .: • • • 

THE UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

COMMODITY FUTURES TRADING COMMISSION 

THE MONETARY AUTHORITY 

OF 

SINGAPORE 

CONCERNING CONSULTATION AND COOPERATION 

AND THE EXCHANGE OF INFORMATION · 

May 16.2000 

. · . 
The United States Cqmmodity Futures Trading Commission, the United States 

Securities and Exchange" _Commission and the Monetary Authority of Singapore, 

recognizing increased international activity in securities and futures transactions and 

acknowledging the need for mutual cooperation between relevant authorities, have 

reached the following understanding .. 

DEFINITIONS 

For the purposes of this Memorandum of Understanding: 

1. "Authority" means: 

2. 

(a) the Commodity Futures Trading Commission of the United States; 

(b) the Securities and Exchange Commission of the United States; or 

(c) the Monetary Authority of Singapore. 

"Requested Authority" means an Authority to whom a request is made 

under this Memorandum of Understanding .. 

3. "Requesting Authority" means an Authority making a request under this 

Memorandum of Understanding. 

4. "Futures Contract" means a futures or options transaction regulated or 

subject to regulation by the Authorities whether transacted over-thecounter or on or subject to the rules of an exchange or market. . 

5. "Futures Business" includes, among others, any person involved in: the 

offer, purchase or sale of futures contracts for the· account of others; the 

purchase or sale of futures contracts for one's own account; advising 

others for compensatiOn, directly or through media. regarding the offer, 

purchase or sale of futures contracts; the management, promotion, offer 

or sale of collective investment schemes involving · futures contracts; or 

equivalent activities. The definition of a futures business also includes 

persons, among others, acting in the capacity of commodity trading 

advisors, commodity pool operators, futures commission merchants, 

introducing brokers, associated persons, floor brokers and floor traders. 

6. "Futures Marker means an exchange or other market, including an over· 

the counter market,. for futures and options that is recognized, supervised 

or subject .to regulation by the Authorities. 

7. "Futures Processing Business" means a clearing organization for futures 

contracts. 

1 

• ~ •. ii~ 7, .• 

.. ··- --· 

. } 
8. "laws and/or Regulations" mean: 

(a) for securities, the provisions of the laws of the United States and/or 

Singapore, the regulations promulgated thereunder, and other 

regulatory requirements that fall within the jurisdiction of the 

Authorities, concerning securities; and 

(b) for futures, the provisions of the laws of the United States and/or 

Singapore, the regulations promulgated thereunder, and other 

regulatory requirements that fall within the jurisdiction of the 

Authorities, concerning futures contracts. 

9. "Person" means a natural person, unincorporated associa~ion, 

partnership, trust, body corporate, or government - or a political 

subdivision, agency, ins~mentality or equivalent authority of a 

government. 

10. "Securities" means any note, stock, treasury stock, bond, debenture, 

evidence of indebtedness, certificate of interest or participation in any 

profit-sharing agreement, collateral-trust certificate, preorganization 

certificate or subscription, transferable share, investment contract, voting-

, trust certificate, certificate of deposit for a security, fractional undivided 

interest in oil, gas, or other mineral rights, any put, call, straddle, option, or 

privilege on _any security, certificate of deposit,_ or group or index of 

securities (including any interest therein or based on the value thereof), or 

any put, call, straddle, option, or privilege entered into on a national 

securities exchange relating to foreign· currency, or, in general, any 

interest or instrument commonly known as a "security", or any certificate. 

of interest or participation in, temporary or interim certificate for, receipt 

for, guarantee of, or warrant or right to subscribe to or purchase, any of 

the foregoing. 

11. "Securities Business" means, ·any business that involves, in whole or in 

part, the offer, purchase or sale of securities for the account of others; the 

purchase or sale of securities for one's own account; advising others for 

compensation, directly or through media, regarding the offer, purchase or 

sale of securities; the management, promotion, offer or sale of collective 

investment schemes involving securities; or equivalent activities.. The 

definition of a securities _business also includes persons, among others, 

acting in the capacity of dealers, investment advisers, introducing brokers11 

associated persons, floor brokers and floor traders. The definition also 

includes operation of a securities market. 

12. "Securities Market" means an exchange or other market, including an over 

the counter market, for securities that is recognized, supervised or subject 

to regulation by the Authorities.· · 

2 

.. 
13. "Securities Proce~sing Business" means a cleanng organization for 

securities, . a securities clearing agency, a securities ·depository or 

securities transfer agent. 

ESTABLISHMENT OF A FRAlVi~WORK FOR CONSULTATIONS REGARDING 

MATTERS OF MUTUAL INTER\~·,_,\\ 

14. The Authorities inten~\o consult periodically about matters of mutual 

concern. Such consultation will be undertaken in the interest of improving . 

cooperation to enhance: the efficiency and integrity of the Securities and 

Futures Markets of the United States and Singapore; the protection ·of 

investors and customers; appropriate market oversight; and the effective 

performance by the Authorities of their respective functions regarding the 

Laws and/or Regulations of the United States and Singapore. 

MUTUAL ASSISTANCE AND THE EXCHANGE OF INFORMATION 

15. General Principles regarding Mutual Assistance and the Exchange of 

Information 

(a) This Memorapdum of Understanding sets forth the Authorities' 

intent with regard to mutual assistance and the exchange of 

information for the· purpose of enforcing arid securing compliance 

with the respective Laws and/or Regulations of the Authorities. 

This Memorandum of Understanding does not create legally 

binding obligations or supersede domestic Jaws. 

(b) This Memorandum of Understanding does not prohibit an Authority 

from taking measures other than those descnbed herein to obtain 

information necessary to ensure enforcement of or compliance with 

the Laws and/or Regulations applicable in . its jurisdiction. In 

particular, this Memorandum of Understanding does .not affect any 

right of any Authority to communicate with, or obtain information or 

documents from,.any Person on a voluntary basis in the jurisdiction 

of the other Authority. 

(c) This Memorandum of Understanding does not confer upon any 

Person not~ defined as an Authority within this Memo~ndum of 

Understanding, the right or ability direcOy or indirectly to obtain, 

.suppress or exclude any information or to chaDenge the execution 

. of a request for aSsistance under _ this Memorandum of 

Understanding. 

(d) The Authorities recognize the importance and desirability of 

exchanging assistance and information for the purpose of enforcing 

3 

· . .. ·: 

.· 
and securing compliance with the laws and/or Regulations 

applicable in their respective jurisdictions. However, a request for 

assistance may be denied by the Requested Authority: 

(i) where the request would require the Requested Authority to. act 

in a manner that would violate its domestic law; 

(ii) where the request is not made in accordance with the 

provisions of this Memorandum of Understanding; or 

(iii) on grounds of public interest. 

Where a. requ~st for assistance is denied, or where assistance is not 

available under its domestic law, the Requested Authority will provide the 

reasons for not granting the assistance and consult pursuant to paragraph 

21.· 

16. Scope of Assistance 

(a) The· Authorities will, within the framework of this Memorandum of 

Understanding, provide each other with the fullest assistance 

permissible under the laws of the United States and Singapore. 

Such assistance will be provided in order to facilitate: market 

oversight induding market-and financial' surveillance; the granting 

of licenses, authorizations, waivers or exemptions for the conduct 

of Securities and Futures Businesses and Securities and Futures 

Processing Busines~es; the supervision of Securities and Futures 

Businesses and Securities and Futures . Processing Businesses; 

the inspection of Securities and Futures Businesses and Securities · 

and Futures Processing Businesses; and the investigation, litigation 

or prosecution by the Authorities of activity that potentially violates 

the Laws and/or Regulations applicable. in their respective · 

jurisdictions. 

(b) .The assistance available under this Memorandum of 

Understanding includes, without limitation: 

(i) providing information held in the files of the Request~d Authority· 

· upon request by the Requesting Authority; 

(ii) taking statements of Persons; and 

(iii) obtaining information and documents from· Persons~ 

(c) The Authorities recognize that they may not in all circumstances 

possess the legal authority to provide the assistance or information 

4 

.. 
17. 

referred to. in paragraph 16. In such circumstances, the Authorities 

wiU use all reasonable efforts to obtain the aid of such qther 

goveromental -agencies that can provide· the assistance or 

informatio~ described in paragraph 16. 

Requests For As.sistance 

~~'- . (a)· Requests for · ssistance will be made in· writing and will be 

. addressed to Ui Requested Authority's contact officer listed in 

Appendix A. 

(b) Requests for assistance will include the following: 

{i) a general description of both the. subject matter of the request . 

and .the purpose for which the assistance or information is 

sought; 

(ii) a general description of the assistance, documents, information, 

or statements sought by the Requesting Authority; 

· '(iii) any information known to or in the possession of the 

Requesting Authority that might assist the Requested Authority 

in identifying either the Persons believed to possess the 

information or documents sought or the places where such 

information may be obtained; 

(iv) the Laws and/or Regulations pertaining to the subject matter of 

the request; and 

(v) the desired time period for the reply. 

(c) In urgent circumstances, requests for assistance~ and the response 

to such requests, may be effected by telephone or facsimile, 

provided such communication is confinned in writing. · 

18. Execution of Requests for Assistance 

(a) Information held in the files of the Requested Authority will be 

provided to the Requesting Authority upon request. 

. . 

(b) Upon request, the Requested Authority ·will take the statements of 

any Person involved, direcUy or indirecUy, in the a_ctiVities that are · 

the subject matter of the request for assistance or in possession of 

information that may assist in the execution of the request· The 

5 
Requested Authority will make a transcript of any statement it takes 

on behalf of the Requesting Authority. 

{c) Unless otherwise agreed by the Authorities, information and 

documents requested under this Memorandum of Understanding 

will be gathered in accordance with the procedures applicable in 

the jurisdiction of the Requested Authority and by Persons 

designated by the Requested Authority. 

{d) Notwithstanding paragraph 18{c), any Person providing a 

statement pursuant to a request for assistance under this 

Memorandum of Understanding will" have the right to have counsel 

present. 

(e) .Notwithstanding any other prov1s1on of this Memorandum of 

Understanding, any Person providing a statement, information, or 

documents as a result of a request for assistance under this 

Memorandum of Understanding will be entitled to all rights and 

privileges applicable in the jurisdiction of the Requested Authority. 

Assertions regarding rights and privileges arising exclusively under 

the laws applicable in the jurisdiction of the Requesting Authority 

will be preserved for consideration by the courts in that jurisdiction. 

{f) Upon request, the Requested Authority will inspect specified books, 

records, Futures Businesses, Securities ..,..Businesses, Futures 

Processing Businesses or Securities Processing Businesses. 

(g) If it appears that responding to a request for assistance under this 

Memorandum of Understanding will involve substantial cost, the 

Requested Authority may, as a condition to executing the request, 

ask the Requesting Authority to make a contribution to such cost in 

an amount agreed upon by the Authorities. 

19. Permissible Uses of Information -

(a) The Requestirig Authority may use non-public infonnation furnished 

in response tq a request for assistance under this Memorandum of 

Understanding solely: 

(i) for the purpose stated_ in the request for assistance with respect 

to ensuring compliance with or enforcement of the laws and/or 

Regulations applicable in the jurisdiction_ of the Reque-sting 

Authority, including the ·legal provisions specified in the request 

and related provisions; and 

6 
(ii) for a purpose within the general framework of the use stated in 

the -request for assistance, induding conducting a civil or 

-~dministrative enforcement proceeding. ·assisting in a selfregulatory organisation's surveiliance or enforcement activities 

(insotar as it is involved in the supervision of trading or conduct 

that is the subject of the request), assisting in a criminal 

pros~ution~ or conducting any investigation for any general 

charg~_ pl~ble to the violation of the provision specified in 

the reque where such general charge pertains to a violation of 

the laws d/or Regulalions administered by the Requesting 

Authority. 

-{b) Before using non-public information furnished under this · 

Memorandum of Understanding for a purpose other than those 

stated in paragraph 19(a ), the Requesting -Authority must first 

inform the Requested Authority of the intended use. The 

Requested Authority will advise ifs views within 14 days and, if 

necessary, the Authorities will consult pursuant to the provisions of 

paragraph 21 to discuss the reasons for any denial by the 

Requested Authority over such intt;nded use and the circumstances 

, under which the intended use might otherwise· be allowed. Fourteen-

. day advance notification ~ not be provided where disdosures are 

made to Persons having the lega power to compel disclosure; in 

such cases, notifi~tion will be provided according to paragraph 

20(c). 

20. Confidentiality 

(a) Each Authority will keep OJOftdentel, to the extent permitted by law, 

requests made under ttls Menl\lrandum of Understand.ing, the 

contents of such requesr.s, and any matters arising· under this 

Memorandum of Und~ing intJuding consultations between the 

Authorities, and unsolicite: assistarce. 

(b) The Requesting Authorit.f wiD not disclose non-public infonnation 

received under this W~orandun of Understanding, except as 

contemplated by. paragra;1119 or ~rsuant to a legally enforceable 

demand, or in connectioo Nith an a1judicatory action or proceeding 

brought under ftle laittE applicalle in the .jurisdiction of the 

Requesting Authority to ··Nhich the Requesting Authority or its 

government, or a political wbdivisinn thereof, is a par:tY. 

(c) To the extent possible~ tle Requesting Authority will notify the 

Requested Authority· of a1y Jegaly enfor~abfe demand for non7 

_) 
public information furnished under this Memorandum of 

Unaerstanding prior to compliance, and will assert such appropriate 

legal exemptions or privileges with respect to such information as 

may be available. 

(d) To the extent permitted by law, the Authorities may by mutual 

written consent make an exception to the principles ·set forth in 

·paragraph 20(a) and (b). 

(e) In response to a request by the Requested Authority, and to the 

extent permitted by law, as soon as the Requesting Authority has 

terminated the matter for which assistance has been requested 

under this Memorandum of Understanding, it will return to the 

Requested Authority all documents and copies thereof not already 

disclosed in proceedings referred to in paragraph 19(a) and other 

material disclosing the contents of such documents, other than 

material that is generated as part of the investigative, deliberative or 

internal analytical process of the Requesting Authority. 

21. Consultation Regarding Mutual Assistan~e and the Exchange of 

· Information 

(a) In any case of dispute over the interpretation of this Memorandum of 

Undersfanding, the Authorities will consult eat!h other with a view to 

reaching a mutually acceptable interpretation. 

(b) The Authorities will consult with each other regarding this 

Memorandum of Understanding with a view to improving its 

operation and resolving any matters that may arise. In particular, 

the Authorities will consult in the event of: 

(i) an Authorit}ls denial of ·a request made by the other Authority 

. pursuant to this Memorandum of Understanding; 

(ii) a change in market or business conditions or in the legislation 

governing the matters set forth in paragraph 8; and 

(iii) any other circumstance that makes it necessary or appropriate 

to amend or extend this Memorandum of Understanding in 

order to achieve its purposes. 

(c) The Authorities 1)1ay agre~ on such p~actical measures as may be 

necessary to facilitate the implementation of this Memorandum of 

Understanding. 

8 

.. 
(d) Any of the conditions of this Memorandum of Understanding may 

be amended, or waived by mutual written consent. 

22. Unsolicited ASsistance 

To the extent permltt~ by the Laws and/or Regulations of its respective 

jurisdiction, eacfh~th~ty will use reasonable efforts to provide the other 

Authority with any i ormation it discovers that gives rise to a suspicion of 

a breach or an an icipated breach of the Laws and/or Regulations 

applicable in the jurisdiction of the other Authority. 

FINAL PROVISIONS 

23. · Effective Date 

Cooperation in accordance with this Memorandum of Understanding will 

· begin on the date of its signing by the Authorities. 

24. Termination 

Cooperation and assistance in accordance with this Memorandum of 

Understanding will continue until the expiration of 30 days after any 

Authority gives written notice to the other A~:Jthorities of its intention to 

discontinue cooperation and assistance hereunder. If either the CFTC or 

the SEC gives such notice, cooperation under this Memorandum will 

continue with respect to the other two Authorities. If any Authority gives a· 

termination notice, cooperation and assistance in accordance w~th this 

Memorandum of Understanding will continue with respect to all requests 

for assistanCe that were made or·information provided before the effective 

date of notification (as indicated in the notice but no earlier than the date. 

the notice is sent) until the Requesting Authority terminates the matter for 

which assistance was requested. 

9 
SIGNED IN TRIPLICATE lf'J ENGLISH AT SYDNEY, AUSTRALIA, THIS 16th DAY OF 

MAY2000. 

FOR THE COMMODITY FUTURES 

TRADING COMMISSION OF 

THE UNITED STATES: 

William Rainer 

Chairman 

FOR THE SECURITIES AND 

EXCHANGE COMMISSION OF 

THE UNITED STATES 

Arthur Levitt 

Chairman 

\ 

10 

FOR THE MONETARY 

AUTHORITY OF·StNGAPORE: , 

1J~M-Cf~~ Tharman Shanmug'a?atnam 

Deputy Managing Director 

(Financial Supervision) 

.· 
APPENDIX A 

., CONTACT OFFICERS 

US Commodity Futures Trad~ CC:tmmission 

Three lafayette Centre · ·\ '· 

1155 21st Street, NW · 

Washington, DC 20581 

USA 

For investigatory and enforcement information: 

Director, Division of Enforcement 

Chief Counsel; Division of Enforcement 

Tel: (202) 418-5320 

Fax: (202) 418-5523 

For supervisory infonnation: 

Director, Division ofT rading and Markets \ 

Tel:- (202) 418-5430 

Fax: (202)418-5536 

For market surveillance information: 

Director, Division of Economic Analysis 

Tel: (202) 418-5260 

Fax: (202) 418-5527 

US Securities and Exchange Commission 

450 5th Street, N.W. 

Washi_ngton D.C 20549 

USA 

For all information 

Director of International Affairs 

T e1: {202) 942-2770 

Fax: {202)"942-9524 

11 
MQnetary Authority of Singapore 

10 Shenton Way · ·. 

MAS Building . 

Singapore 079117 

For all information: . ,, 

Head of Depart~e~t, ~ .,_ 

Securities and Futures DepartmeJ\ 

Tel: (65)-229-9461 

Fax: (65)-229-9697 

,·. 

12