US CFTC forms public panel on energy markets

13 February 2008 19:21  [Source: ICIS news]

HOUSTON (ICIS news)--The Commodity Futures Trading Commission (CFTC) said on Wednesday it has established an advisory committee to hold public forums examining the regulatory issues swirling through US energy markets.

Manipulation of those markets has been high on the agenda of the US chemical industry, which has asked Congress to rein in price swings in the natural gas on which it depends for feedstock.

The members of the new panel have not yet been named, but will include energy industry representatives drawn from exchanges, producers, market users and consumers, the CFTC said.

The CFTC announcement did not mention the chemical industry directly, but said the panel "will provide a unified and continuing forum for outside groups and interests involved in or affected by energy markets to provide input" to the regulator.

Establishment of the panel follows up on public hearings in September in which the CFTC looked at the emerging role of over-the-counter (OTC) trading in energy markets.

"The role of the futures markets for discovering prices and managing energy price risks will continually raise new regulatory issues," the regulator said.

"Establishing this advisory committee will help us to meet these regulatory challenges and improve our understanding of and communication with the energy markets."

The advisory committee will serve as a vehicle for discussion of energy market regulation between the CFTC and US and foreign markets, firms, end users, and governmental entities, it said.

The public forums are expected to be held twice a year.

In the last four years, the CFTC has received more than $300m (€207m) to settle energy market manipulation cases, mostly involving natural gas.

($1 = €0.69)

By: Stephen Burns
+1 713 525 2653

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