Dodd-Frank: Gray Areas In Commodities Futures Trading?

 There are still some very gray areas about what the Dodd-Frank Wall Street Reform Bill requires with reference to Commodities Futures Trading. According to the following article, the Commissioners voted to immediately begin requirements for daily reporting of swaps about a certain threshold by exchanges and market participants to determine position limits. It may still be some time before those limits can be put in place.
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Dodd-Frank: What's An Energy Trader to Do?
Industry Verticals:  Jill Feblowitz 01.11.2010 kl 17:40 | IDC Energy Industry Insights Community


Ever since the signing of the Dodd-Frank Wall Street Reform and Consumer Protection Act in July, the Commodity Futures Trading Commission (CFTC) has been working on building out the detailed regulations mandated by the bill. Recently, there have been two interesting developments in putting together regulations that energy companies will want to take note of in order to determine what to do next.

According to a Reuters article by Roberta Rampton and Christopher Doering on October 19, since this is the first time that the CFTC will be regulating the over the counter derivatives market, final regulations on position limits might be delayed until the CFTC has enough information to inform what those position limits may be; the initial deadline was January 2011.

To get that information, the Commissioners voted to immediately begin requirements for daily reporting of swaps about a certain threshold by exchanges and market participants. It is fairly clear that this reporting will not apply to commercial end users that want to hedge, but it may not rule out energy companies that are doing large volumes of swaps. So at this point, final position limits regulation may be delayed for a while.

Read entire article

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