MEMORANDUM OF UNDERSTANDING 

ON MliTUAL ASSISTANCE AND EXCHANGE OF INFORMATION BETWEEN 

THE UNITED STATES COMMODITY FliTURES TRADING COMMISSION AND 

THE COMISION NACIONAL DEL MERCADO DE V ALORES OF SPAIN 

The United States Commodity Futures Trading Commission and the Comisi6n 

Nacional del Mercado de Valores of Spain acknowledge the importance of ensuring 

compliance with and enforcement of the commodity futures and commodity option laws, 

rules and regulations of the United States and Spain. In light of the increasing international 

activity in the commodity futures and commodity option markets, and the need for mutual 

cooperation in order to facilitate the performance of their respective duties, the Commodity 

Futures Trading Commission and the Comisi6n Nacional del Mercado de Valores, acting 

in their capacities as administrative authorities, have reached the following understanding: 

CLAUSE 1. Definitiom; 

1. 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 Comisi6n Nacional del Mercado de Valores of Spain 

(CNMV); 

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" meam; a natural person, association, partnership, corporation, trust, 

government or political subdivision, agency or instrumentality of a 

government; 

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e. "futures business" means commodity trading advisors, commodity pool 

operators, futures commission merchants, introducing brokers, associated 

persons and floor brokers, floor traders, clearing corporations, futures and 

options brokers and dealers and exchanges; -

f. "legal rule or requirement" means those laws, regulations and requirements 

of the United States and Spain relating to: 

(i) misrepresentation or the use of fraudulent, deceptive or 

manipulative practices in connection with the offer, purchase or 

sale of any futures or options contract; 

(ii) the making of a false or misleading statement or any material 

omission in any application or report made to the Authorities; 

(iii) the conduct of futures or options trading on, or subject to the 

rules of, the markets of the requesting Authority; 

(iv) the conduct of futures businesses or reporting requirements 

imposed upon such businesses; and 

(v) the financial and other qualifications of those engaged in or in 

control of futures businesses. 

2. In case of a question concerning the meaning of any term used in this Memorandum, 

the parties will define the terms herein in accordance with the relevant laws of the 

jurisdiction of the requesting Authority. 

CLAUSE2. General Principles 

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

mutual assistance and exchange of information between the Authorities for the 

purpose of facilitating a requesting Authority's efforts to secure enforcement of or 

compliance with any legal rule or requirement as defined in Clause l(f). This 

Memorandum does not impose any binding legal obligations on the Authorities, or 

supersede domestic laws. 

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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 CNMV under the laws of Spain to 

investigate or gather information or to take measures otherwise than as provided in 

this Memorandum to obtain information, whether or not in connection wilh a request 

under this Memorandum. 

3. The provisions of this Memorandum will not give rise to the right on the part of any 

private party, 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. 

CLAUSE3. Scope of A<isistance 

1. In accordance with the laws and regulations of their respective jurisdictions, the 

Authorities will provide the fullest mutual assistance, within the framework of this 

Memorandum, in response to a request concerning enforcement of or compliance 

with any legal rule or requirement as defined in Clause l(f). To the extent permitted 

hy law, such assistance will be provided even where the subject matter of the request 

for assistance does not constitute a violation of the laws and regulations of the 

requested Authority. 

2. The assistance available under this Memorandum includes, without limitation: 

a. providing access to information in the files of the requested Authority; 

b. obtaining statements, including statements under oath, of persons by the 

requested Authority; and 

c. obtaining information and documents from persons. 

CLAUSE 4. Requests for Assistance 

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

Authority's contact officer listed in Appendix A 

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2. The request for assistance will 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; 

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 legal rule or requirement pertaining to the matter which is the subject of 

the request; 

e. whether the presence and participation of its representatives is desired during 

the taking by the requested Authority of statements of persons in connection 

with the request; and 

f. 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 will be 

effected by summary procedures or by means of communication other than the 

exchange of letters, provided that they are confirmed in the manner prescribed in 

paragraphs 1 and 2 of this Clause. 

4. Requests for assistance may be denied where the request does not comply with the 

provisions set forth in this Memorandum. 

CLAUSES. Execution of Requests 

1. If the requesting Authority specifies in the request: 

a. the statement will 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 will be required; 

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c. the statement will he taken under oath; 

d. a verbatim transcript of the statement will 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 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. 

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. 

3. The 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 a statement as a result of a request made under this Memorandum will be 

entitled to all of the rights and protections of the Constitution and laws of the 

jurisdiction of the requested Authority. Assertions made at the time the statement 

is taken regarding other rights and privileges arising exclusively pursuant to the 

Constitution or laws of the jurisdiction of the requesting Authority will 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 the requested Authority continues to respond to such request for assistance. 

CLAUSE6. Permissible Uses of Information 

1. The requesting Authority may use the information furnished solely: 

a. for purposes stated in the request with respect to ensuring compliance with 

or enforcement of the legal rule or requirement specified in the request and 

related provisions; and 

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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 criminal prosecution, or conducting any investigation related 

thereto for any general charge applicable to the violation of the legal rule or 

requirement specified in the request. 

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

paragraph 1 of this Clause, the requesting Authority will first inform the requested 

Authority of its intention and provide the requested Authority an opportunity to 

oppose such use. If the requested Authority opposes the use, the Authorities agree 

to consult pursuant to Clause 8 concerning the reasons for the refusal and the 

circumstances under which use of the information might otherwise he allowed. If the 

requested Authority agrees, subject to certain conditions, to the use of the 

information for purposes other than those stated in paragraph 1 of this Clause, the 

information may be used only under the conditions imposed by the requested 

Authority. 

CLAUSE7. Confidentiality 

1. 

2. 

3. 

4. 

Each Authority will keep confidential to the extent permitted hy its law 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. However, disclosures that are absolutely necessary to carry out the 

requests are permitted, and confidentiality may be waived by mutual agreement of 

the Authorities. 

The requesting Authority will keep confidential to the extent permitted by its law any 

information received pursuant to this Memorandum, unless it is disclosed in 

accordance with Clause 6. 

Except as contemplated by Clause 6, the requesting Authority will not disclose the 

information to any other person and will 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 will 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. 

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. 
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5. As soon as the requesting Authority has terminated the matter for which assistance 

has been requested under this Memorandum, it will, upon request of the requested 

Authority, 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 Clause 6. Other material disclosing 

the contents of such documents also will be returned, other than material that is 

generated as part of the deliberative, investigative, internal or analytical process of 

the requesting Authority, which may be retained. 

CLAUSE 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 Clause 2; or 

b. a change in market or business conditions or in the legislation governing 

matters within the jurisdiction of either Authority, or any other difficulty 

which makes it necessary to amend or extend this Memorandum in order to 

achieve its purposes. 

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. 

CLAUSE 9. Unsolicited Assistance 

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. 

CLAUSE 10. Effective Date 

This Memorandum will be effective from the date of its signature by the Authorities. 
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CLAUSE 11. Termination 

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 such notice is given, this Memorandum will continue ta 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 this l (, ~ay of October, 1992. 

William P. Albrecht 

Commissioner 

Commodity Futures Trading 

Commission 

Luis roissier 

President 

Comisi6n Nacional del 

Mercado de Valores 

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