CFTC proposes exemptions for Southwest Power Pool. The Commodity Futures Trading Commission (CFTC) requested comment on a proposed order concerning Southwest Power Pool, Inc. (SPP), a Regional Transmission Organization (RTO) regulated by the Federal Energy Regulatory Commission. The proposed order would exempt certain specified transactions of SPP from the provisions of the Commodity Exchange Act and Commission regulations. Comments should be submitted within 30 days after publication in the Federal Register, which is expected shortly. (5/18/2015) CFTC press release.
Anti-spoofing request. The remarks of Commodity Futures Trading Commission (CFTC) Chair Timothy Massad before the Senate Agriculture Committee were summarized by Reuters. Among other things, Massad testified that CME Group has been asked to strengthen its anti-spoofing efforts. (5/14/2015) Testimony summary.
Forward contracts with embedded volumetric optionality. A final interpretation on forward contracts with embedded volumetric optionality was published by the CFTC. The new guidance addresses when an agreement, contract, or transaction would fall within the forward contract exclusions from the “swap” and “future delivery” definitions in the Commodity Exchange Act, notwithstanding that it allows for variations in the delivery amount. The interpretation is effective immediately. (5/12/2015) CFTC press release.
DCO application. Nodal Clear, LLC has submitted to the CFTC an application for registration as a derivatives clearing organization. Comments on the application should be submitted to the CFTC by June 8, 2015. (5/7/2015) CFTC press release.