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On October 15, 2015, the Federal Energy Regulatory Commission issued an order clarifying that the exemption from the buy/sell prohibition applies to supply side natural gas asset management agreements. This clarification is important for both holders of interstate capacity and asset managers and should provide more flexibility for parties to structure their transactions.  Norton Rose Fulbright US LLP has issued an alert on the order that contains more information on its implications.…
On September 22, 2015, the CFTC issued a “supplemental” proposed rulemaking (the “2015 Proposal”) to revise its long-pending proposal on aggregation for position limit purposes published in November 2013 (the “2013 Proposal”). The 2015 Proposal, if finalized, would provide companies with over 50% ownership or equity interest in affiliated entities with an easier mechanism to disaggregate their positions in futures and swaps for position limit purposes than the CFTC set out in the 2013 Proposal.…
On May 7, 2015, the CFTC published in the Federal Register a proposal to eliminate the odd-yet-burdensome Form TO, which for the past two years has been required of derivatives end-users to report certain information to the CFTC regarding their trading in commodity trade options. If the proposal is adopted as final after the close of the comment period on June 8, few will mourn the passing of Form TO. The history of Form TO…
On November 3, 2014, the CFTC approved a proposal to revise the often confusing “seven-part” test for forward contracts with embedded volume options that the CFTC announced in its final product definition rules (77 Fed. Reg. 48,208). The CFTC offered the seven-part test as a clarification to help commercial market participants distinguish routine physical forward contracts, which are excluded from the definition of “swap” under the Dodd–Frank Act, from commodity options, which are deemed swaps…
On November 3, the CFTC proposed what new Chairman Timothy Massad described as “further fine-tuning of our rules” to avoid “unintended consequences on . . . nonfinancial commercial companies . . .  .”  This post addresses the CFTC’s proposals regarding: 1)     recordkeeping requirements; and 2)     the deadline for posting “residual interest.” Recordkeeping requirements The CFTC is proposing to amend Rule 1.35 to address concerns of commercial end users that the CFTC’s new recordkeeping requirements are…
The U.S. House of Representatives has passed H.R. 4413, a bill that would reauthorize the Commodity Futures Trading Commission (CFTC) and also make some important changes to the Commodity Exchange Act (CEA), including changing the definition of the term “swap” in a way that would benefit certain physical market participants. H.R. 4413, which currently is awaiting Senate consideration, would give much-needed clarity to physical market participants who have struggled with the CFTC’s interpretation of its…