Regulators must distinguish physical and financial energy transactions, says risk manager
Regulators should ensure that energy producers do not get unfairly pooled with investment banks when changes to US regulation under the Dodd-Frank Act are enforced, as there is a distinct difference between an entity that partakes in financial derivatives activity and a company that trades physical contracts for future delivery to manage its risk, says Chris Schlegel, financial manager with Southern Company.
"[The Dodd-Frank Act] is 2,300 pages of new law and while it's not clear what we have to
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