Three energy groups have called on the Commodity Futures Trading Commission (CFTC) to postpone the Oct. 12 date for nonswap dealers and nonmajor swap participants to comply with Title VII of Dodd-Frank Wall Street Reform Act by a minimum of a year (see Daily GPI, Sept. 11a; July 3).
A “number of rulemakings that are foundational to this new regulatory framework are still in a state of flux, pending the resolution of the Commission’s requests for further comments on its interim final rules, interpretations and proposed exemptions,” wrote the Edison Electric Institute, American Gas Association and Electric Power Supply Association in comments to the CFTC earlier this week.
“We want to know what all the rules of the road are,” and for the agency to “provide industry clarity on what the expectations are,” said a regulatory spokeswoman for one of the energy groups.
“We make this request…not to delay the process so that we can avoid compliance, but rather to avoid the unintended adverse consequences described, the joint associations respectfully request, on behalf of their members, that the Commission defer the compliance dates applicable to all nonswap dealer/non-major swap participant for a minimum of 12 months after the Commission completes the rulemaking processes for the Dodd-Frank regulations,” they said.
The energy groups said “we appreciate the Commission’s willingness to continue to address issues and receive comments in the rulemaking process. However, more time is needed after all the rules are issued to ensure that energy industry participants have sufficient time to develop a comprehensive program to comply with the Commission’s new rules and regulations.”
The additional time is “also necessary so that uncertainty as to rules and regulations does not inadvertently disrupt the liquidity of the derivatives markets and the delivery of wholesale, non-financial commodities related to electric and gas operations — both of which could result in higher prices for consumers, as well as commodity market participants.”
Trading exchanges have also been tweaking the way they do business ahead of the Oct. 12 deadline for nonswap dealers and nonmajor swap participants to comply with Title VII of Dodd-Frank Wall Street Reform Act (see Daily GPI, Sept. 11b).
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