CFTC Issues Final Exemption Order for RTO/ISO Transactions

The Commodity Futures Trading Commission (“CFTC” or “Commission”) on March 28, 2013, issued its final order exempting certain regional transmission organizations and independent system operators (“RTO/ISOs”) and specified transactions in their respective markets, from all but the general anti-fraud and anti-manipulation authority, and scienter-based prohibitions of the Commodity Exchange Act (“CEA”) and CFTC regulations thereunder (“Final Order”). The Final Order was issued in response to a request for exemption filed pursuant to Section 4(c) of the CEA by the California Independent System Operator Corporation (“CAISO”), Electric Reliability Council of Texas, Inc. (“ERCOT”), ISO New England, Inc. (“ISO-NE”), Midwest Independent Transmission System Operator, New York Independent System Operator, and PJM Interconnection, LLC (“Requestors”). The Requestors sought exemption for specified transactions authorized under tariffs or protocols approved by the Federal Energy Regulatory Commission (“FERC”) or, in the case of ERCOT, the Public Utility Commission of Texas (“PUCT”), and for any persons, including the Requestors and their members or other market participants offering, entering into, rendering advice, or rendering other services with respect to the specified transactions. As described below, each Requestor must comply with certain conditions prior to the exemption becoming effective, and the Commission separately extended existing interim relief to provide time for Requestors to meet these conditions.  read more

Paul J. Pantano, Jr.
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Gregory K. Lawrence
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Terence T. Healey
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Sohair A. Aguirre
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