The French regulator AMF and FranceAgriMer announced that have signed an agreement aimed at strengthening their cooperation to enable the AMF to more effectively perform its new duties in relation to agricultural commodity derivatives markets and FranceAgriMer to fulfil its role of understanding and organizing such markets.
Following the 2007-2008 economic crisis, the regulatory framework was strengthened and the AMF’s duties were extended to include monitoring spot commodity markets when they underlie financial derivatives. Forward market prices are routinely used as a benchmark in spot contracts. Consequently, any manipulation on futures markets is likely to directly or indirectly affect trade in the underlying goods, and vice versa.
By signing this agreement, the two signatories have formalised the framework for their cooperation. This will result in the regular exchange of economic information concerning spot markets in agricultural commodities and the Euronext-tradable derivatives they underlie.