May 23, 2022

Volume XII, Number 143

Advertisement
Advertisement

May 20, 2022

Subscribe to Latest Legal News and Analysis

Federal Court Rules Federal Energy Regulatory Commission (FERC) Does Not Have Authority to Fine Trader for Manipulation of Futures Contracts

Pursuant to the Energy Policy Act of 2005, the Federal Energy Regulatory Commission (FERC) fined a natural gas trader $30 million for manipulating the settlement price for natural gas futures contracts on the New York Mercantile Exchange by selling a significant number of contracts in a manner designed to affect the settlement price for those contracts. According to the trader, the FERC could not fine him because the Commodity Futures Trading Commission has exclusive jurisdiction over all transactions involving commodity futures contracts. The trader petitioned the US Court of Appeals for the District of Columbia Circuit for review; the CFTC intervened in support of the trader. The court found that Congress intended Section 2(a)(1)(A) of the Commodity Exchange Act to give the CFTC exclusive jurisdiction over transactions conducted on futures markets. The court granted the trader’s petition for review, finding that manipulation of natural gas futures contracts falls within the CFTC’s exclusive jurisdiction and that nothing in the Energy Policy Act clearly repeals the CFTC’s exclusive jurisdiction. Hunter v. Federal Energy Regulatory Commission, No. 11-1477 (March 15, 2013).

Click here for the opinion.

©2022 Katten Muchin Rosenman LLPNational Law Review, Volume III, Number 82
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Our Corporate Practice provides sophisticated transactional representation and business counseling to national and global companies in a wide range of industries. Attorneys in the practice work closely with those from other disciplines to provide our clients with comprehensive representation in their business transactions.

Every attorney in our Corporate Practice is dedicated to making sure that each client receives a high degree of personal attention, and that the correct combination of legal talent is assigned to each matter. We believe that our clients’ business objectives should...

310-788-4690
Advertisement
Advertisement
Advertisement