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CFTC Approves Exclusion for Utility Special Entities

The Commodity Futures Trading Commission (CFTC) approved a final rule this week to exclude certain swaps used in utility operations from one threshold used to identify swap dealers.  The rule change will give counterparties additional flexibility to transact with utility special entities while avoiding the regulatory burdens associated with the “swap dealer” designation.  Power...

Proposed CFTC Regulations May Affect Coops

The Commodity Futures Trading Commission (CFTC) is proposing to amend its swap dealer regulations for entities entering into swaps with utility special entities.  Click here to read the press release, which includes three actions intended to protect liquidity for end-users, a term that would typically include coops.  Read more...

CFTC Issues No-Action Relief From De Minimis Threshold for Certain Swaps

The Commodity Futures Trading Commission (CFTC) issued temporary no-action relief from the $25 million special entity de minimis threshold used to determine “swap dealer” status under the CFTC’s swap regulatory regime.  The no-action relief applies only to certain swap transactions described in the no-action letter and remains in effect until the CFTC rules on a petition filed by...

CFTC and FERC Announce Implementation of Information Sharing MOU

The U.S. Commodity Futures Trading Commission (CFTC) and Federal Energy Regulatory Commission (FERC) have announced the initial transmission of market data under the recently-adopted CFTC-FERC Memorandum of Understanding (MOU) for use in analyzing market activities and protecting market integrity.  To read more about this announcement, click...

CFTC Announces End-User Roundtable

The U.S. Commodity Futures Trading Commission (CFTC) announced that its staff will hold a public roundtable to discuss issues concerning end-users and Dodd-Frank on April 3, 2014.  The roundtable will consist of three panels discussing various issues affecting end-users, including electric cooperatives, and is open to the public on a first-come, first-served basis.  Read the full...

CFTC Approves Clearing Exemption for Certain Coops

The Commodity Futures Trading Commission (CFTC) issued a final rule to exempt swaps entered into by certain coops from the clearing requirement.  The exemption is subject to several conditions, including that it applies only to swaps entered into (i) in connection with origination loans to coop members, or (ii) to hedge commercial risk related to these loans or swaps with members. ...

NRECA Warns CFTC Not to Expand Definition of “Swap Dealer”

The National Rural Electric Cooperative Association (NRECA) has signed on to a letter with other energy trade associations insisting that the Commodity Futures Trading Commission (CFTC) refrain from lowering the swap threshold from $8 billion to $3 billion.  This change would have the effect of expanding the definition of “swap dealer” to include commercial end-users.  Such an...