MEMORANDUM Of UNDERSTANDING BETWEEN 

TilE UNITED STATES COMMODITY fUTURES TRADING COMMISSION 

AND THE COMMISSIONE NAZIONALE PERLE SOCIETA E LA BORSA OF ITALY 

ON CONSULTATION AND 

MUTUAL ASSISTANCE FOR THE EXCHANGE OF INFORMATION 

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MEMORANDUM OF UNDERSTANDING 

The United States Commodity Futures Trading Commission and the Commissione Nazionale 

per le Societa e la Borsa of Italy acknowledge the importance of ensuring compliance with 

and enforcement of the futures and options laws and regulations of the United States and 

Italy. In light of the increasing international activity in futures and options transactions, and 

the need for mutual cooperation in order to facilitate the performance of their respective 

duties, the Commodity Futures Trading Commission and the Commissione Nazionale per le 

Societa e la Borsa have reached the following understanding with respect to consultations and 

mutual assistance for the exchange of information. The following understandings do not 

create legally binding obligations on the authorities or supersede domestic la\.V. 

CLAUSE I DEFINITIONS 

For the purposes of this Memorandum of Understanding (Memorandum): 

(a) "Authority" means: 

(i) the Commodity Futures Trading Commission of the United 

States (CFTC); and 

(ii) the Commissione Nazionalc per le Socict3 e Ia Horsa of Italy 

(CONSOB). 

(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 or legal entity, trustee, or partnership. 

(c) "futures business" means any person involved, in whole or in part, in 

effecting transactions in futures and options for the benefit of others, or 

otherwise soliciting such transactions for execution; operating as an 

introducing broker; buying and selling futures and options for one's own 

account by persons regulated or subject to regulation by the authorities; 

and advising others for compensation. 

(f) "futures processing business" means a clearing organization. 

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(g) "futures transactions" means transactions in futures or options that are 

regulated or subject to regulation by the Authorities, whether transacted 

on or subject to the rules of an exchange or market, or over-the-counter; 

and 

(h) "laws or regulations" means: 

(i) the provisions of the laws, or regulations promulgated 

thereunder, of the United States and; 

(ii) the provisions of the laws, or regulations promulgated 

thereunder, of Italy; 

concernmg: 

(a) insider trading, misrepresentation or the use of fraudulent, 

deceptive or manipulative practices in connection with 

futures or options contracts; 

(b) the duties of persons to comply with reporting 

requirements; 

(c) the making of a false or misleading statement or any 

material omission in any application or report made to the 

Authorities by persons subject to regulation by the 

Authorities; 

(d) the duties of persons or futures businesses to make full 

and fair disclosure of information to investors in 

connection with futures transactions~ 

(e) the duties of futures businesses and futures processing 

businesses pertaining to their financial, operational or 

other requirements and their duties of fair dealing in the 

offer and sale of futures and options, the execution of 

transactions and the conduct of their businesses; 

(f) the financial and other qualifications of those engaged in, 

or in control of, futures businesses or futures processing 

businesses regulated or subject to regulation by the 

Authorities; and 

(g) any other futures or options matters which fall under the 

jurisdiction of the Authorities. 

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CLAUSE II SCOPE OF ASSISTANCE 

1. The requested Authority will provide to the requesting Authority the fullest 

mutual assistance to the extent permitted by domestic law, 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 laws of its jurisdiction to 

investigate a violation of any law or regulation within the jurisdiction of the requesting 

Authority. 

3. Assistance available under this Memorandum includes, but is not limited to: 

(a) providing information in the files of the requested Authority; 

(b) taking statements of persons; and 

(c) obtaining documents from persons. 

4. 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 

limitation, the Authorities intend to provide or otherwise facilitate the provision of assistance 

to the full extent permitted by law to accomplish the objectives of this Memorandum. 

CLAUSE Ill GENERAL PRINCIPLES FOR MUTUAL ASSISTANCE FOR THE 

EXCHANGE OF INFORMATION 

l. This Memorandum sets forth a statement of intent of the Authorities regarding 

the exchange of information between the Authorities. 

2. The provisions of this Memorandum do not create binding obligations on the 

Authorities; do not supersede domestic Jaw; and will not give rise to a right, directly or 

indirectly, on the part of any person, other than the Authorities, to obtain, suppress or exclude 

any information or to challenge the execution of a request for assistance under this 

Memorandum. 

where: 

3. Assistance under this Memorandum may be denied by the requested Authority 

(a) the request is not in accordance with the provisions set forth in this 

Memorandum; 

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(b) 

(c) 

CLAUSE IV 

the execution of the request would prejudice the sovereignty, security, 

public interest or public order of the state of the requested Authority; 

a criminal proceeding has already been initiated in the state of the 

requested Authority based upon the same facts and against the same 

persons, or the same persons have already been finally sanctioned on the 

same charges by the competent Authority, unless the requesting 

Authority can demonstrate that the relief or sanctions sought in any such 

proceeding would not be duplicative of any relief or sanctions obtained 

in the state of the requested Authority. 

REQUESTS FOR ASSISTANCE 

1. Requests for assistance are to be made in writing and addressed to the 

requested Authority's contact officer(s) listed in Appendix A. Requests will be accompanied 

by a translation into Italian in the case of a request to the CONSOB and into English in the 

case of a request to the Commodity Futures Trading Commission. 

2. The request for assistance will specify: 

(a) the information sought by the requesting Authority; 

(h) a general description of both the matter which is the subject of the 

request and the purpose for which the information is sought; 

(c) the persons or entities suspected by the requesting Authority of 

possessing the information sought or the places where such information 

may be obtained, if the requesting Authority is knowledgeable thereof; 

(d) the laws 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 may 

be transmitted by summary or emergency procedures provided that they are confirmed in the 

manners prescribed in paragraphs 1 and 2 of this Clause. 

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CLAUSE V EXECUTION OF REQUESTS 

1. In making a request for assistance, the requesting Authority may designate the 

persons whose statement it wishes to be taken. 

2. A person whose statement is taken pursuant to a request will have. the right to 

have counsel present during the taking of the statement. Statements will be taken in the same 

manner and to the same extent as in proceedings in the State of the requested Authority. 

3. If the requested Authority consents, representatives designated by the requesting 

Authority may be present when a statement is taken and may prescribe specific questions to 

be asked. 

4. If the requested Authority consents, a verbatim transcript may be made of the 

statement. 

5. 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 requesting Authority will establish a cost sharing arrangement before continuing 

to respond to such request for assistance. 

CLAUSE VI 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 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, or market surveillance, assisting in a criminal prosecution, 

or conducting any investigation related thereto for any general charge 

applicable to the violation of the law, or regulation specified in the 

request. 

2. To use the information furnished for any purpose other than those stated in 

paragraph I of this Clause, the requesting Authority will first inform the requested 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 

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requested Authority, the Authorities will consult pursuant to Clause VIII concerning the 

reasons for the refusal and the circumstances under which use of the information might 

otherwise be allowed. 

CLAUSE VII CONFIDENTIALITY 

1. Each Authority will keep confidential, to the extent permitted by law, requests 

made within the framework of this Memorandum, the contents of such requests, and any other 

matters arising during the operation of this Memorandum, including consultations between the 

Authorities. 

2. The requesting Authority will keep confidential, to the extent permitted by law, 

any information received pursuant to this Memorandum, except in the case where the 

information provided must be disclosed in the course of its use pursuant to Clause VI. 

3. The Authorities may, by mutual arrangement, make an exception, to the extent 

permitted by law, to the principles set forth in paragraphs 1 and 2 above, applicable to each 

Authority. 

CLAUSE VIII 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 anse. 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 grounds set forth in paragraph 3 of Clause Ill, or a request to use 

information on the grounds set forth in paragraph 2 of Clause VI; 

(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 he necessary to 

facilitate the implementation of this Memorandum. 

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CLAUSE IX EFFECTIVE DATE 

This Memorandum will be effective from the date of its signing by the Authorities. 

Each Authority will i,nform the other Authority of the adoption of the domestic measures that 

may be necessary to implement the provisions of this Memorandum. 

CLAUSE X TERMINATION 

1. This Memorandum will 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 any Authority gives such notice, 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 Milan, this 22nd day of June, 1995 

Commodity Futures Trading Commission 

by ~~~ Mary L. Schapiro 

Chairman 

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Commissione Nazionale per lc Societ8. e Ia 

Borsa 

by 4-c· 

Enzo Berlanda 

Chairman 

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