Dodd-Frank.com

FERC & CFTC sign MOUs on Jurisdiction and Information Sharing (Finally)

By

On January 2, approximately three years after the applicable deadline under the Dodd-Frank Act, the Federal Energy Regulatory Commission and Commodity Futures Trading Commission entered into two Memoranda of Understanding regarding high level procedures for: (1) resolving jurisdictional issues between the two agencies and (2) sharing information of mutual interest.... Read More

Topics: Derivatives, Energy

Second Recent CFTC “Banging the Close” Case Results in Various CEA Violations, Fines, Trading Bans

By

On November 25, 2013, the Commodity Futures Trading Commission (CFTC) settled with Daniel Shak and SHK Management LLC (collectively Respondents) for violating the Commodity Exchange Act (CEA). Read about the case here. Specifically, the CFTC found that Shak and SHK attempted to manipulate the price of light sweet crude oil (WTI)... Read More

Topics: Energy

Protecting a Position by “Banging the Close” and “Spoofing” Will Be Penalized – the CFTC

By

On November 6, 2013, the Commodity Futures Trading Commission filed suit against Donald R. Wilson and his company, DRW Investments, for “banging the close” and “spoofing” the IDEX USD Three-Month Interest Rate Swap Futures Contract (the “Three-Month Contract”) from January 2011 through August 2011. See CFTC Banging the Close and Spoofing pdf.... Read More

Topics: Energy

Who are the Swap Dealers?

By

We recently passed the first rolling 12-month period for determining which entities will surpass the CFTC’s de minimis swap dealing levels and thus be “swap dealers” under the Dodd-Frank Act. So, who are they? The National Futures Association maintains an up-to-date registry of swap dealers and major swap participants, along... Read More

Topics: Derivatives, Energy

CFTC Re-Proposes Position Limits on Physical Commodity Derivatives

By

Yesterday, the CFTC voted to approve a new position limits rule that resembles the agency’s previous short-lived rule (vacated and now abandoned after court challenge), albeit with certain significant changes. Affected Contracts The position limits will apply to 28 core futures contracts in physical commodities and their “economically equivalent” futures,... Read More

Topics: Derivatives, Energy

CFTC Abandons Old Position Limits Rule in Favor of New Rule

By

According to a statement by Commissioner O’Malia today, the CFTC has voted to dismiss its appeal of the federal district court decision striking down the CFTC’s 2011 position limits rule. The Commission has an open meeting scheduled for November 5 to propose a new position limits rule. Commissioner O’Malia had... Read More

Topics: Derivatives, Energy

Record CFTC Fines in 2013

By

On October 24, 2013, the CFTC Enforcement Division announced its 2013 fiscal year results – 82 filed enforcement actions and record fines of $1.7 billion ($1.5 billion in civil penalties and $200 million in restitution and disgorgement.) The 82 enforcement actions in 2013 brought the total number of enforcement actions... Read More

Topics: Energy