ARRANGEMENT ON WAREHOUSE INFORMATION 

WHEREAS the United States Commodity Futures Trading Commission ("CFTC"') and the 

United Kingdom Financial Services Authority ("FSA") (the "Authorities") recognize that, in 

connection with commodities that are the subject of futures or options trading in either the 

United States or the United Kingdom, information concerning t~e operations, stocks and use 

of futures and options exchange or other regulated derivatives delivery markets ("regulated 

market") warehouse facilities ("Information") may be relevant to the detection, investigation, 

deterrence and/or imposition of sanctions regarding possible price manipulation or other 

potentially abusive conduct, 

WHEREAS the CFTC and FSA may have access to Information, 

WHEREAS the CFTC and FSA, as more specifically set forth herein, may exchange 

Information for the purpose of facilitating the performance of their respective regulatory 

oversight, supervisory and .enforcement functions, including the sharing of information for 

· the purposes contemplated by the Declaration on Cooperation and Supervision of 

International Futures Markets and Clearing Organizations, 

WHEREAS for the purpose of sharing Information the CFTC and FSA, formerly the 

Securities and Investments Board ("SID"), are parties to the Memorandum of Understanding 

on Mutual Assistance and the Exchange of Information between the United States Securities 

and Exchange Commission and Commodity Futures Trading Commission and the United 

Kingdom Department of Trade and Industry and Securities and Investments Board 

(September 25, 1991) (the "US/UK MOU"), and 

WHEREAS certain additional procedures subject to the US/UK MOU may be desirable to 

facilitate the sharing of Information between the CFTC and FSA, 

NOW THEREFORE the CFTC and FSA have reached the fo1lowing understanding (the 

"Arrangement") to facilitate the exchange of information regarding the operations, stocks and 

use of warehouses that are identified as eligible to receive, store, and deliver commodities in 

connection with the performance <;>f transactions concluded on regulated markets or through 

regulated clearing organisations (if separate from such markets and vested with commodity 

delivery functions that are executed through warehouse type facilities) ("warehouses'') 

subject to the jurisdiction of an Authority. 

General Principles 

1. 1 The Authorities have various powers to obtain and share information, and 

arrangements for doing so, in the exercise of their functions other than pursuant to 

this Arrangement, including the US/UK MOU. The Authorities undertake to use 

their best endeavours to fulfil the provisions of this Arrangement. However, 

nothing in this Arrangement affects the exercise of such powers or the operation 

of any other arrangements, including the US/UK MOU. · 
1.2 The provisions of this Arrangement do not give rise to a right on the part of any 

third party, directly or indirectly, to obtain, suppress or exclude any information 

that is the subject of this Arrangement as or from evidence or otherwise to 

challenge the execution of a request for Information under this Arrangement. 

2. Subject of Arrangement 

2.1 This Arrangement addresses requests for Information between the Authorities 

(individually, ''Request") regarding: 

A. the operations and stocks of warehouses; and 

B. the use of warehouses by regulated market members, their licensees, or 

customers, 

as such Information relates to commodities traded on regulated markets, or 

commodity transactions concluded through cle~ing organisations, if such 

organisation is separate from the market and is vested with delivery functions, 

subject to the jurisdiction of the Requested Authority. 

2.2 For these purposes the term "commodity transaction" means a future or option on 

a commodity and "commodity'' means any physical commodity of finite. supply 

subject to delivery through warehouses traded on a regulated market, or clearing 

organization where relevant, that has executed or is the subject of an op~rational 

side letter facilitating the operation of this Arrangement. 

3. Ability to Provide Information 

3 .I As set forth in its side letter to this Arrangement, the CFTC has the authority and 

procedures to obtain Information from warehouses, including warehouses located 

outside the United States, where they are designated for delivery by regulated 

markets subject to the CFTC's jurisdiction. 

3.2 As set forth in its side letter to this Arrangement, the FSA has the capacity and 

procedures to obtain Information on a voluntary basis from regulated markets 

subject to its jurisdiction, which may obtain Information pursuant to rules or 

contract from warehouses which they have designated for delivery, including 

warehouses located outside the United Kingdom. 

3.3 To the extent permitted by law, each ·Authority has the power and procedures to 

provide the Information received by it to the other Authority for the purpose of 

assisting it in the exercise of its regulatory oversight, supervisory and 

enforcement functions. 
4. Examples of Information 

4. 1 Examples of Information that may be the subject of a Request inClude but are not 

limited to: 

A. the total stocks of a commodity specified in the Request received, 

stored or delivered and the origin of such shipments and deliveries 

over a period ·specified in the Request in connection with the 

performance of commodity transactions; 

B. the grade or quality of such stocks~ 

C. whether such stocks are, or may be, deliverable~ 

D. information about the ownership of such stocks and, to the extent 

reasonable, whether warehouses, members, and customers of members 

hold an interest in them~ 

E. the identity of the members, or other traders or brokers as appropriate, 

depositing or removing such stocks over a period specified in the 

request~ 

F. the warehouse fees for storing, receiving and delivering any 

commodity. 

5. Publicly Available Information 

5. 1 Prior to making a Request, an Authority should use reasonable efforts, consistent 

with the urgency of the Request, to obtain through other means any of the 

Information referred to in Article 4 that is publicly and readily available. 

5.2 Notwithstanding Article 5.1, the Authorities understand that publicly available 

information may be requested under this Arrangement, and each Authority intends 

to assist the other Authority to obtain such publicly available information 

expeditiously. 

6. Requests for Information 

6.1 All requests for Information under this Arrangement shalt comply with paragraph 

12 of the UK/US MOU. 
6.2 Without prejudice to the scope of other existing information-sharing arrangements 

and the US/UK MOU between the Authorities, an Authority may make a Request 

when that Authority has determined, at its discretion, that there are reasonable 

grounds for the Authority to believe that one of the following market events has 

occurred: 

A. unusually large price movements in a market subject to its jurisdiction 

and in related markets; 

B. unusual price relationships in a market subject to its jurisdiction and in 

related markets; 

C. abnormal movement of a commodity into or out of warehouse which is 

impacting the price of a commodity or commodity transaction subject 

to its jurisdiction; or 

D. a person may be attempting to accumulate an unusually large position 

which may have a substantial impact on the price of a commodity or 

commodity transaction subject to its jurisdiction. 

6.3 Such a Request is intended to be considered by the Requested Authority to be a 

request to secure compliance with or enforcement of a legal rule or requirement 

related to manipulative or other abusive market practices provided the Requesting 

Authority can on further request indicate the relevant legal rule or requirement, as 

set out in paragraphs 12(b)(ii) and l2{d) of the US/UK MOU. 

7. Execution of Requests 

The Requested Authority may provide, or may seek to cause the relevant regulated 

market or clearing organisation or warehouse to provide, the requested 

Information to the Requesting Authority directly. or the Authorities may agree to 

request an inspection of a relevant warehouse in conformity with the terms set out 

in Part IV of the US/UK MOU. 

8. Use and Confidentiality of Information 

Information received in response to a Request is intended, consistent with 

applicable law, to be used by the Requesting Authority solely for the purpose of 

enabling or assisting it to exercise its regulatory oversight, supervisory, or 

enforcement functions in accordance with:o and subject to the confidentiality 

provisions o( Part V the US/UK MOU . 

9. Contact Officers 

For purposes of Requests made under this Arrangement, the contact officers are: 
CFTC: 

FSA: 

Director, or his or her designee, Division of Economic Analysis 

Director, or his or her designee, Office of International Affairs. 

Director, Division of Market Supervision/Enforcement 

10. Consultation 

The Authorities intend to consult periodically on the operation of this 

Arrangement in order to determine whether any adjustments to this arrangement 

are desirable to improve its operation or resolve any matters and in particular 

upon enactment of the UK Financial Services and Markets Bill into law. 

11. Scope 

11.1 This Arrangement is intended to apply to those regulated markets and clearing 

organisations that are or may become subject to the jurisdiction of the CFTC or 

FSA and that have been specifically identified by the CFTC and FSA in their 

operational side letters submitted as contemplated by paragraphs 3.1 and 3.2, 

respectively. 

11.2 The CFTC and FSA may, from time to time, after consultation amend their side 

letters to add a regulated market or clearing organisation to the scope of this 

Arrangement. 

. ~~ 

Signed and effective this/7day of May 2000 

CFTC~~IL"------

FSA