February 20, 2014

CFTC Staff Issues No-Action Letter for Southwest Power Pool

Washington, DC — The U.S. Commodity Futures Trading Commission’s (CFTC or Commission) Divisions of Clearing and Risk, Market Oversight, and Swap Dealer and Intermediary Oversight (Divisions) today issued a time-limited no-action letter to Southwest Power Pool.

In October of 2013, Southwest Power Pool petitioned for exemptive relief pursuant to Section 4(c)(6) of the Commodity Exchange Act (CEA) from certain CEA provisions and Commission regulations for specified transactions (Subject Transactions) that are offered or entered into pursuant to Southwest Power Pool’s FERC-approved tariff. These Subject Transactions are to be offered on Southwest Power Pool’s Integrated Marketplace, which is scheduled to commence operations on March 1, 2014.

The letter, consistent with the relief provided by the April 2, 2013 final order issued by the Commission to exempt certain specified transactions of Regional Transmission Organizations and Independent System Operators from certain provisions of the CEA and Commission regulations (RTO-ISO Order), provides relief to Southwest Power Pool, its members and those market participants who meet the appropriate persons requirement under the RTO-ISO Order, and permits this market and these market participants to continue to operate while the Commission considers Southwest Power Pool’s petition.

Last Updated: February 20, 2014