CFTC Staff Issues Extension of No-Action Relief to Southwest Power Pool (CFTC 14-109) (with Lofchie Comment)

The CFTC Divisions of Clearing and Risk, Market Oversight, and Swap Dealer and Intermediary Oversight issued a no-action letter to Southwest Power Pool that extends the relief previously granted by the CFTC in prior no-action letter 14-18. Specifically, the letter provides exemptive relief pursuant to CEA Section 4(c)(6) (exemptions from trading on an exchange) from certain CEA provisions and CFTC rules for specified transactions that are offered or entered into pursuant to Southwest Power Pool's FERC-approved tariff. These transactions are offered on Southwest Power Pool's Integrated Marketplace.

The relief will expire on the earlier of February 28, 2015 or the date on which the CFTC takes final action on Southwest Power Pool’s request for exemptive relief.

Lofchie Comment: Given the number of unresolved issues that the CFTC and its staff has to address, it seems a waste of the CFTC's resources for it to issue no-action letters that have unduly short time spans. As a result, the CFTC is regularly in the business of granting extensions, effectively to itself; it would be more productive to simply grant longer relief periods, during which time the CFTC could reach a (hopefully favorable) conclusion.

See:CFTC Letter 14-109.Related news: CFTC Issues No-Action Relief to Southwest Power Pool (CFTC Letter 14-18) (with Lofchie Comment)(February 20, 2014).