On June 30, 2010, the House passed the Conference Report on H.R. 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act. Senate procedures and the funeral for Senator Byrd (D-WV) will prevent a final vote until after the July 4th recess.
Natural gas utilities that use OTC derivatives to manage price volatility will not be required to conduct OTC derivatives transactions on an exchange or through a clearinghouse. We sought to clarify certain definitions in the legislation to make the exemption more clear. While our legislative recommendations were not included, Senate Banking Committee Chairman Dodd and Senate Agriculture Committee Chairwoman Lincoln signed a joint letter to House Financial Services Committee Chairman Frank and House Agriculture Committee Chairman Peterson that addresses many our concerns. This letter was incorporated into the Congressional Record on June 30th by the two House Committee Chairmen. This letter should provide valuable guidance to the SEC and CFTC as they develop regulations on these issues. To view the joint letter, please click here.