On December 13, the U.S. Circuit Court of Appeals for the D.C. Circuit rejected a motion by Amaranth Advisors LLC (Amaranth), a hedge fund currently involved in litigation regarding alleged energy futures market manipulation, to stay the Federal Energy Regulatory Commission’s (FERC) $256 million order to show cause against Amaranth. The FERC’s jurisdiction to pursue price manipulation claims against Amaranth has been called into question by Amaranth and a number of other futures market participants, which have argued that the Commodity Futures Trading Commission has exclusive jurisdiction over the claims. In its motion, Amaranth argued that responding to the FERC order would prejudice its case in other litigation, most notably the pending CFTC enforcement action relating to similar allegations of manipulation. (Amaranth Advisors L.L.C. v. Federal Energy Regulatory Commission, No. 07-1491 (D.C. Cir. Dec. 13, 2007))

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