Commodity

The Commodity Futures Trading Commission (CFTC) last Thursday issued a final rule that relaxes the prescriptive core principles related to trading swaps on designated contract markets (DCM), and proposed delaying until the end of the year the effectiveness of some provisions of Title VII of the Dodd-Frank Wall Street Reform Act.

The Commodity Futures Trading Commission (CFTC) Thursday issued a final rule relaxing the proposed prescriptive core principles related to the trading of swaps on designated contract markets (DCMs), and proposed delaying the effectiveness of certain provisions of Title VII of the Dodd-Frank Wall Street Reform Act until the end of the year.

The Commodity Futures Trading Commission (CFTC) published a schedule of annual fees that it will charge designated contract markets (DCM) and registered futures associations for the operation of its self-regulatory organization (SRO) program.

The Commodity Futures Trading Commission (CFTC) has intervened in former Amaranth gas trader Brian Hunter’s appeal of a Federal Energy Regulatory Commission (FERC) order fining him $30 million for allegedly manipulating the gas futures market. In the briefing filed in the U.S. District Court of Appeals for the District of Columbia Circuit, the CFTC said it intervened in the case because “FERC’s assertion of jurisdiction directly conflicts with the express statutory grant of exclusive jurisdiction to the CFTC over futures trading on futures exchanges.” The two federal regulatory agencies have butted heads over the issue of whether FERC has jurisdiction in cases where the manipulation of natural gas futures trades subsequently influences the price of physical gas transactions (see NGI, Sept. 17, 2007). Both Hunter and the CFTC argue that FERC lacks jurisdiction in these cases. However in intervening in the case, the CFTC is not defending Hunter’s alleged activities in the futures market. In mid-2007, the CFTC brought its own action against Amaranth and Hunter for attempted gas futures market manipulation one day before FERC brought its enforcement action (see NGI, July 30, 2007). The Amaranth hedge fund was liquidated in late 2006 after losing $6 billion on natural gas trades. FERC fined Hunter $30 million in April 2011.

While this is “out of my area of expertise, I think…it’s inevitable that natural gas is going to be a world commodity, and that because of very substantial price differentials between the price in this country and the prices in Europe and Asia it will happen,” FERC Chairman Jon Wellinghoff said during a roundtable briefing with reporters last week at the agency’s headquarters in Washington, DC.

While this is “out of my area of expertise, I think…it’s inevitable that natural gas is going to be a world commodity, and that because of very substantial price differentials between the price in this country and the prices in Europe and Asia it will happen,” FERC Chairman Jon Wellinghoff said during a roundtable briefing with reporters at the agency’s headquarters in Washington, DC.

These days with no end to decade-low gas prices in sight, Newfield Exploration Co. CEO Lee Boothby can’t wait to be in charge of an oil-weighted production company, and it’s going to happen soon, he said Wednesday. Newfield has put down the dry gas drillbit and is focusing intently on oil and liquids-rich plays.

The Commodity Futures Trading Commission (CFTC) is scheduled Wednesday to consider the much-anticipated final rule defining “swap dealers” (SDs) and “major swap participants” (MSPs), as well as other market entities. The rule, the result of probably the most contentious rulemaking proceeding at the agency, will lay the groundwork for the CFTC to proceed with other regulatory reforms under the Dodd-Frank Wall Street Reform Act.

The Commodity Futures Trading Commission (CFTC) Tuesday voted out a final rule that will “democratize the markets” by broadening access to real-time central clearing, according to Chairman Gary Gensler. The rule is designed to bolster competition in the multi-trillion-dollar swaps market and help commercial customers by providing hedging opportunities with lower risk and volatility.