May 10, 2016

CFTC Issues Proposed Amendment to the 2013 Final Order Regarding RTOs and ISOs

Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today issued a proposed amendment to a final order the CFTC issued on March 28, 2013 that exempted certain specified transactions of six Regional Transmission Organizations and Independent System Operators (RTO-ISO Order) from certain provisions of the Commodity Exchange Act (CEA) and CFTC regulations.

The RTO-ISO Order exempted contracts, agreements, and transactions for the purchase or sale of the limited electric energy-related products that are specifically described within the RTO-ISO Order from the provisions of the CEA and CFTC regulations, with the exception of the CFTC’s general anti-fraud and anti-manipulation authority, and scienter-based prohibitions, under specified provisions of the CEA and implementing regulations.

The proposed amendment to the RTO-ISO Order would explicitly state that the exemption also does not apply to actions pursuant to CEA section 22 with respect to those specified provisions. The comment period on the proposed amendment will be open for 30 days after publication in the Federal Register. Comments may be submitted electronically through the CFTC’s Comments Online process.

Last Updated: May 16, 2016