Energy Metro Desk Series "Drums along the Potomac" Discusses CFTC Swap Dealer Rule and Cross-Border Guidance Case Decision

In the latest installment of the Energy Metro Desk series "Drums along the Potomac," editor-in-chief John Sodergreen discusses, among other things, the recent amendment to the definition of "swap dealer" and the decision regarding the CFTC's cross-border guidance in SIFMA v. CFTC.

In the Energy Metro Desk article, Mr. Sodergreen describes the recent 4-0 vote by CFTC commissioners to adopt amendments to the swap dealer definition as a "slam dunk." According to Mr. Sodergreen, the final rulemaking, which amends the exclusion of utility operations-related swaps from the de minimis, could be a sign that the CFTC intends to "finally get back to focusing on the business of business."

Additionally, Mr. Sodergreen discusses Federal District Court Judge Paul Friedman's opinion regarding the CFTC's cross-border guidance. Judge Friedman ruled that the CFTC was "well within its discretion" to proceed with guidance rather than rulemaking. Judge Friedman noted, however, that the CFTC failed to consider the costs and benefits adequately in its cost-benefit analysis. However, Mr. Sodergreen indicated that he did not find the Judge's opinion to be persuasive as to the CFTC's actions.

Click here to view the article.The above link is to an excerpt from the most recent issue of Energy Metro Desk, which is published biweekly by Scudder Publishing Group, an energy trade news publishing company based in the Washington, D.C. metropolitan area. Those interested in learning more about Energy Metro Desk may do so by linking to www.energymetro.com or e-mailing [email protected]. Reprinted with permission of the publisher, Scudder Publishing Group, LLC. Copyright 2014.