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Oil: Commodity Markets

Volume 478: debated on Monday 23 June 2008

To ask the Chancellor of the Exchequer what discussions he has had with his US counterpart on the trading of oil using unregulated procedures in London and New York futures exchanges. (213167)

Trading on the London futures exchanges is always regulated. Regulation of UK exchanges on which oil and other commodity derivatives are traded is the responsibility of the FSA in the UK and, where appropriate, the Commodity Futures Trading Commission (CFTC) in America should the exchange have applied to offer its services there too.

The Chancellor of the Exchequer has had various discussions with international counterparts in recent months regarding the drivers of oil prices, including at the G8 Finance Ministers Meeting on 14 June in Osaka, and at previous G7 Finance Ministers Meetings in February and April 2008. As was the case with previous administrations, it is not the Government’s practice to provide details of all such discussions.

To ask the Chancellor of the Exchequer what estimate he has made of the quantity of oil traded on the Intercontinental Futures Exchange that is (a) regulated and (b) traded using processes which are not regulated by the Financial Services Authority. (213168)

ICE Futures Europe is a fully regulated exchange, regulated by the FSA as a recognised investment exchange, as set out in the Financial Services and Markets Act 2000 (“FSMA”). All trading on ICE Futures Europe is therefore regulated by the FSA because it is taking place on a regulated market.

To ask the Chancellor of the Exchequer what discussions he has had with the Chief Executive of the Financial Services Authority on the operation of the Intercontinental Futures Exchange in relation to oil trading; and if he will make a statement. (213169)

Responsibility for the monitoring of the operation of ICE Futures Europe in relation to oil trading is a matter for the FSA. The FSA is independent of Government.

To ask the Chancellor of the Exchequer what regulatory powers the Financial Services Authority has in relation to oil trading on the Intercontinental Futures Exchange. (213170)

ICE Futures Europe is a fully regulated exchange, regulated by the FSA as a recognised investment exchange, as set out in the Financial Services and Markets Act 2000 (“FSMA”). The FSA therefore has access to all the normal supervisory tools that it can apply to recognised investment exchanges in the UK.