Reuters: Regulatory News: US power, gas industry seeks more time to comply with Dodd-Frank

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US power, gas industry seeks more time to comply with Dodd-Frank Sep 26th 2012, 16:58 Tweet Share this Email Print Related Topics Stocks » Regulatory News » Markets » Mutual Fund Center » ETFs News » Financials » Industrials » Non-Cyclical Consumer Goods » Utilities » Wed Sep 26, 2012 12:58pm EDT * Groups say CFTC Dodd-Frank rules still in flux * Costs could rise for consumers due uncertain rules Sept 26 (Reuters) - U.S. energy trade groups have asked the U.S. Commodity Futures Trading Commission (CFTC) for more time to comply with the Dodd-Frank regulations for certain energy market participants. As part of its call for more time, the energy trade groups - Edison Electric Institute (EEI), the American Gas Association (AGA), and the Electric Power Supply Association (EPSA) - said in a joint statement, a number of the CFTC rulemakings "are still in a state of flux, pending the resolution of the Commission's requests for further comments," among other things. The energy trade groups warned earlier this week that uncertainty in the rules could lead to higher energy costs for consumers. This request by the energy trade groups is part of a growing number of industry efforts to defer or delay implementation of what they say are still very "confusing" regulations. Last week, for example, the Commodity Markets Council, which represents non-banks with large swaps desks like Cargill Inc and Kraft Foods, asked the CFTC to postpone an Oct. 12 start date for tallying swaps trades towards the key "dealer" threshold, arguing they need more clarity on the rules and time to build up compliance regimes. Under the 2010 Dodd-Frank financial reform law, the CFTC has embarked on a significant restructuring of the nation's derivatives rules aimed at boosting transparency and limiting risk in the $648 trillion over-the-counter global swaps market. The energy trade groups warned that uncertainty in the rules could "inadvertently disrupt the liquidity of the derivatives markets and the delivery of commodities related to electric and gas operations, resulting in higher prices for consumers and commodity market participants. The groups also said market participants may be deterred from engaging in certain trading or hedging transactions that could increase the cost of risk management for commercial end users of swaps, again resulting in higher prices for customers. Specifically, the energy trade groups want the CFTC to defer the compliance dates for non-swap dealer/non-major swap participant energy market participants for a minimum of 12 months after the commission completes the rulemaking process for the Dodd-Frank regulations. The CFTC has estimated that 125 businesses will be tagged as swap dealers. Large banks like Goldman Sachs Group Inc and JPMorgan Chase & Co have been widely expected to be caught up in the category. Swap dealers will have to register by the end of the year if they reach an $8 billion threshold in swaps trading activity. Non-Cyclical Consumer Goods Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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