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What’s Next Under the Congressional Review Act?

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As we reported, the House and Senate have passed a joint resolution under the Congressional Review Act disapproving the SEC Resource Extraction Rule and that President Trump was expected to sign the legislation that eliminates the regulation. What else is there percolating under the Congressional Review Act? According to the... Read More

Topics: Energy, Trump

CFTC Extends Exemptions of RTO Energy Products to Bar Private Rights of Action

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The CFTC quelled a controversy that had emerged regarding its proposed exemption of certain specified energy products transacted in Regional Transmission Organizations (RTO) by doing a “180” on its proposals that otherwise would have made the general anti-fraud, anti-manipulation, and scienter-based prohibitions that still apply to such transactions under the... Read More

Topics: Derivatives, Energy

CFTC Supplemental Proposal Would Authorize Exchanges to Administer More Flexible Approach to Bona Fide Hedge Exemption to Position Limits

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The CFTC has published a proposed supplement to its December 2013 proposed rule on position limits* that would, among other things, authorize designated contract markets and swap execution facilities (“exchanges”) to administer a more flexible approach to the bona fide hedge (“BFH”) exemption from position limits, allowing such exchanges to... Read More

Topics: Derivatives, Energy

CFTC Proposes Guidance Clarifying that Certain Electric Capacity and Natural Gas Peaking Contracts are not “Swaps”

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The CFTC has proposed guidance that certain capacity contracts in electric power markets and certain natural gas peaking supply contracts should not be considered “swaps” under the Commodity Exchange Act. The guidance does not provide a precise definition of the excluded contracts but identifies their common characteristics as follows: “[T]he... Read More

Topics: Derivatives, Energy

CFTC Eliminates Certain Trade Option Reporting and Recordkeeping Requirements for End Users

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The CFTC approved a final rule today that removes trade option* reporting and recordkeeping requirements applicable to non-swap dealer/major swap participant counterparties (“Non-SD/MSPs” or “end users” for purposes of this summary). The rule will become effective upon publication in the federal register, which should occur prior to the April 1,... Read More

Topics: Derivatives, Energy

CFTC Issues Final Interpretation on Forward Contracts with Embedded Volumetric Optionality

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Recently, the CFTC published a final interpretation clarifying its seven-element test regarding forward contracts with embedded volumetric optionality (EVO). The final interpretation provides that a contract for deferred delivery of a physical commodity (i.e., a forward contract) that contains EVO will fall within the forward contract exclusion, and thus not... Read More

Topics: Derivatives, Energy

CFTC Proposes Changes to Trade Option Rules for End Users

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The CFTC has proposed several important changes that would alleviate the reporting and recordkeeping obligations of end users with respect to trade options (or provide by rule certain relief currently only available under no-action letter) and alter certain other aspects of the existing trade option rule in Section 32.3 of... Read More

Topics: Derivatives, Energy