Understanding the new mosaic of commodities trading regulations.
Matthew J. Agen (MatthewAgen@Postschell.com) is a member of Post & Schell P.C.’s energy group. The author acknowledges the assistance of Douglas Canter of Post & Schell P.C.’s energy group.
The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank or the Act)1 amended the Commodity Exchange Act (CEA)2 and greatly expanded the jurisdiction of the Commodity Futures Trading Commission (CFTC or the commission) over financial instruments used in energy transactions. At the time of its enactment, there was great uncertainty about how Dodd-Frank and the related CFTC-implementing regulations would affect retail electric utilities and local natural gas distribution companies. Even after several years of CFTC clarification, the CEA’s applicability to specific retail utility transactions requires constant vigilance by utilities.