CFTC Considering More Oversight Of ICE Electricity Contracts
07 October 2009 - 9:17AM
Dow Jones News
Federal commodity regulators revealed Tuesday they are
considering imposing additional federal oversight on 11 different
cash-settled electricity contracts listed by
IntercontinentalExchange (ICE).
The Commodity Futures Trading Commission disclosed its intent to
examine the contracts in an announcement in the Federal
Register.
They are the latest contracts that the CFTC has said it will
look at as part of its new authority gained from the 2008 farm
bill. That bill gave the CFTC the power to impose additional
oversight, including reporting and position limits, on contracts
traded on exempt commercial markets like ICE if they serve a price
discovery function.
Earlier this year the CFTC announced it would impose oversight
on ICE's Henry Hub natural gas swap - a contract that was widely
expected to be affected by the new rules enacted in the farm
bill.
It is also considering new regulations for the carbon spot
contract listed by the exempt commercial market arm of the Chicago
Climate Exchange.
The newest ICE electricity contracts the CFTC said it is looking
at are: Mid-C Financial Peak Contract, Mid-C Financial Peak Daily
Contract, Mid-C Financial Off-Peak Contract, Mid-C Financial
Off-Peak Daily Contract, SP-15 Financial Day-Ahead LMP Peak
Contract, SP-15 Financial Day-Ahead LMP Peak Daily Contract, SP-15
Financial Day-Ahead LMP Off-Peak Daily Contract, SP-15 Financial
Swap Real Time LMP-Peak Daily Contract, SP-15 Financial Day-Ahead
LMP Off-Peak Contract, NP-15 Financial Day-Ahead LMP Peak Daily
Contract and the NP-15 Financial Day-Ahead LMP Off-Peak Daily
Contract.
-By Sarah N. Lynch, Dow Jones Newswires; 202-862-6634;
sarah.lynch@dowjones.com