News / Science & Technology
Energy Solutions, Inc., Reports Upcoming CFTC Decision May Impact Natural Gas Market
Will large end-use natural gas consumers fall into the swap-dealer category?
Today, February 23, 2012, the U.S. Commodity Futures Trading Commission (CFTC) is scheduled to vote on final Dodd-Frank Act regulations defining which banks, hedge funds, and energy companies will be designated swap-dealers.
The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law by President Barack Obama on July 21, 2010. The Act consists of several sections, and its overall goal is to implement financial regulatory reform. For example, the Volcker Rule, which specifically restricts U.S. banks from making certain kinds of speculative investments that do not benefit their customers, has broken the record for attracting the most comment letters submitted on any Dodd-Frank proposal; over 17,000 comments have been submitted on this rule. Yet, the government’s ability to implement and monitor the Dodd-Frank Act is questionable given its complexity.
In the February 2012 Monthly Advisor, Valerie Wood, President of Energy Solutions, Inc., reported that “February 23rd is going to be a huge day for the Natural Gas Industry because the CFTC is scheduled to provide more insight on which firms will be forced to set aside additional funds to cover transactions in the swap market, which means it is expected to define who will be considered a swap dealer or major swap participant.” Wood went on to state that, “This means large end-use consumers who look to the futures market for price stability and reliability could actually fall into the swap-dealer category, and many have been fighting this possibility.”
Additional information about price trends, natural gas storage inventories, demand issues, production levels, rig counts, and much more can be found in the Monthly Edition of The Advisor. Take a FREE, no-obligation 60-day trial to The Advisor and receive the most recent Weekly Edition, as well as the Monthly Edition for February, which contains additional insight into bearish,bullish and neutral factors that affect pricing within the Natural Gas Industry. Learn more by visiting www.energysolutionsinc.com.
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About Energy Solutions, Inc.
Formed in 1996,Energy Solutions, Inc. is independently owned. With more than 50 years of experience in the natural gas industry, our team focuses on natural gas prices and in helping businesses improve their internal processes for the purchase of natural gas.
