CFTC Extends No-Action Relief to Regional Transmission Organization (CFTC Letter 16-09)

The CFTC Division of Clearing and Risk, Division of Market Oversight and Division of Swap Dealer and Intermediary Oversight (the "Divisions") extended no-action relief to a regional transmission organization ("RTO"). The extended relief pertains to (i) contracts, agreements and transactions for the purchase or sale of certain "transmission congestion rights," "energy transactions" and "operating reserve transactions" (if such transactions are offered or entered into pursuant to a FERC-approved tariff), and (ii) certain preliminary activities related to the RTO's transmission congestion rights market that are necessary to support the launch of its integrated marketplace.

The initial no-action relief was scheduled to expire on the earlier of August 31, 2014, when the CFTC took final action on Southwest Power Pool's application for an exemption under section 4(c)(6) of the CEA and section 712(f)(4) of the Dodd-Frank Act. Subsequently, the Divisions extended the no-action relief to February 28, 2015, September 30, 2015, December 31, 2015 and February 15, 2016, respectively. Effective immediately, the newly extended no-action relief will expire on March 16, 2016, or on the date on which the CFTC takes final action on a Proposed Order.