Tokyo Communiqué on Supervision of Commodity Futures Markets ("Tokyo Communiqué")
In October l997, regulatory authorities from l6 jurisdictions responsible for supervising commodity futures markets participated in the Tokyo Commodity Futures Markets Regulators’ Conference in Tokyo, Japan. This conference announced the completion of the work program contained in the London Communiqué issued in November 1996. At the end of the meeting the regulators issued the Tokyo Communiqué on Supervision of Commodity Futures Markets. In relation to commodity futures markets' oversight, regulators agreed to set benchmarks through guidance on best practices; assure accountability of market authorities at every level, regulatory, self-regulatory and exchange; assure adequacy and timeliness of regulatory and supervisory; information to assess the risks of market participants' whole position and consequent exposures, recognizing that information on related cash and over-the-counter positions may be less accessible than information on positions in centralized exchange markets; assure clarity of rules of the market and their application through surveillance, cross border cooperation, intervention and disciplinary techniques; assure adequacy of market authorities' powers to address abusive practices, including the ability of a competent authority to address undesirable conduct by non-members of the market. Specific requirements have been identified in relation to contract design, market surveillance and information sharing. The Technical Committee of the IOSCO issued a document on the Application of the Tokyo Communiqué to Exchange-Traded Financial Derivatives Contracts in September 1998.