A high frequency energy trading firm is being charged by federal regulators Monday with manipulating markets through “spoofing,” an increasingly frequent scheme in which false bids are submitted and then pulled back, the Commodities Futures Trading Commission said. The civil action against Panther Energy Trading of Red Bank, N.J., and owner Michael J. Coscia, is… Keep reading →
If you trade an energy product over the counter rather than on an exchange, you probably need to get yourself a CICI number by Wednesday (April 10). That’s the deadline the Commodity Futures Trading Commission has set up for firms that haven’t been exempted from reporting information on their “swaps” activity to the government as part of the lengthy and complex implementation of the Dodd Frank financial sector reform.
Because the government just loves a good acronym, CICI stands for “CTFC Interim Compliant Identifier” that results in an “LEI” or a “legal entity identifier” for the purposed of reporting details of energy swaps trade and counterparties. The CFTC, concerned that some would miss the deadline, issued an advisory with much more information here. Keep reading →
The Commodity Futures Trading Commission has come under fire for the nuanced lists of exemptions it has offered to various firms and groups as it implements some portions of Dodd Frank legislation that require greater transparency and tighter limits on hedging and trading of the derivatives it oversees.
Included in this group have been certain “natural” players perceived as having an inherent physical position in a relevant commodity and therefore less likely to game the market without regard for fundamental supply and demand or to hold dangerously large positions. Also included as of this week are public power companies and cooperative utilities, which have been exempted from all but the anti-fraud, anti-manipulation and record inspection provisions of the Commodity Exchange Act when it comes to energy transactions. Keep reading →
Renewable energy developers, financiers and utilities breathed a collective sigh of relief last week when the Commodity Futures Trading Commission issued its long-awaited final rule on a crucial exemption from the Dodd Frank Act.
What trading technology used to look like at the Hong Kong Stock Exchange in 1986.
Energy trading has long been divided between the headline prices everyone can see on the news and the much longer list of prices that exist in the traditionally more freewheeling over the counter markets. Keep reading →
Firms and traders found guilty of oil market manipulation could be fined a minimum of $10 million a day under a proposal announced yesterday by President Obama.
“At a time when instability in the Middle East is contributing to rising global oil prices that impact consumers at the pump, it is important to give American families confidence that illegal manipulation, fraud and market rigging are not contributing to gas price increases,” said a White House statement. Keep reading →
Will financial system regulatory reforms make energy price hedging costly – or impossible?
That was the question experts grappled with – and disagreed over – at the National Association of Regulatory Utility Commissioners (NARUC) meeting in Washington, DC this week. Keep reading →