Energy firms beg CFTC for clarity on commodity options

Utilities, oil producers and trading firms are urging the CFTC to issue clarification on contracts with embedded volumetric optionality

cftc-hq
CFTC in Washington, DC

On April 3, officials with the US Commodity Futures Trading Commission (CFTC) got an earful from energy firms upset about a much-criticised CFTC rule that has sown confusion and disarray among natural gas and power traders.

During a public roundtable devoted to the impact of the Dodd-Frank Act on end-users, nearly a dozen panellists from the industry urged the commission to rethink its approach to physically settled commodity options. Specifically, the panellists said a CFTC rule released in

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