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
The Energy Risk Glossary, now in its eighth edition, provides an at-a-glance explanation of the myriad specialised terms and acronyms used in energy trading and risk management.
This year, the guide has been updated by Aviv Handler of ETR Advisory. Energy Risk would like to thank him for his input into this edition, which benefits greatly from his valuable experience and insight into energy markets.
The fast-changing nature of these markets means much has changed since our last edition – almost 200 new entries and revisions have been made this year. Reflecting the increasing importance of regulation, definitions of the Markets in Financial Instruments Directive (MiFid) and the Ljubljana-based Agency for the Cooperation of Energy Regulators (Acer) make it into the glossary for the first time. A focus on improving back-office infrastructure and mitigating counterparty risk is also apparent from the inclusion of terms such as ‘portfolio reconciliation’ and ‘portfolio compression’.
The glossary is extensively cross-referenced, making for easy and thorough searches. We hope you find it useful.
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