“Enron Loophole” will soon be closed: Levin
Senator Carl Levin, who chairs the US Senate's permanent subcommittee on investigations, has said that he will soon introduce legislation that will increase regulatory scrutiny of the over-the-counter (OTC) markets.
An investigation conducted earlier this year by Levin's Senate panel found that Amaranth Advisors LLC, the energy hedge fund that collapsed last year after losing more than $6 billion in natural gas trades, shifted its activities to InterContinental Exchange (Ice) in order to avoid trading limits it faced on the New York Mercantile Exchange (Nymex).
The so-called Enron loophole, which got its name because it was inserted into the 2000 Commodity Exchange Act after requests from Enron and others
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