The Wall Street Reform and Consumer Protection Act, introduced by Barney Frank and Chris Dodd, was enacted on July 21, 2010. It was introduced as a result of the G-20 2009 Pittsburgh Agreement.
The main focus for energy market participants is Title VII of the Act (of which there are 16 titles), which aims to regulate the swaps market. While the legislation set out a broad structure for the new regulatory regime, the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission are responsible for filling out the structure and are in the process of doing this via a series of proposed rule-makings that are then made available for public comment. The rules are being implemented over 2013.
The main provisions in Title VII that will affect the energy sector include mandated exchange trading, clearing and reporting for certain types of swaps, the registration and regulation of dealers and major end-users of swaps, and the creation of new market entities such as clearing organisations, data repositories and exchanges.
* see also G-20 2009 Pittsburgh Agreement
Commodity trading and risk management is a subject that is necessarily complicated, and is becoming more so. The Energy Risk Glossary seeks to disentangle and clarify the jargon by providing definitions of commonly used energy and commodity market terms.
These include definitions related to a variety of underlying energy products, as well as technical terms about the many instruments and benchmarks used by energy market participants.
Many of the most recent terms to have been added to our glossary stem from the actions of regulators since the 2008 global financial crisis. The onset of rules, such as the US Dodd-Frank Act and European Market Infrastructure Regulation, has markedly increased the cost and complexity associated with commodity trading. Perhaps they have also increased the need for a handy reference guide such as this.
The glossary is extensively cross-referenced, making for easy and thorough searches. We hope you find the latest edition of the Energy Risk Glossary to be a useful resource.
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