CFTC Issues Final Order to Exempt Certain SPP Transactions and Amends the 2013 Final Order to Exempt RTO/ISO Transactions From Private Rights of Action

On October 18, the CFTC approved a final order in response to a petition from Southwest Power Pool, Inc. (SPP) for exemption of certain transactions in the SPP market.  The CFTC’s final order exempts certain specified transactions within SPP from the Commodity Exchange Act (CEA) and CFTC regulations, with the exception of the CFTC’s general anti-fraud and anti-manipulation authority, and scienter-based prohibitions.  In addition, the final order expressly exempts such transactions from private actions under CEA section 22.  Other than the express addition of the exemption from private actions, the final order for SPP is similar to the CFTC’s March 28, 2013 final order that exempted specified transactions of six other RTOs/ISOs from certain provisions of the CEA and CFTC regulations.  In addition, the CFTC issued an amendment to the 2013 final order related to the other RTOs/ISOs.  The amendment explicitly provides that the transactions covered under the 2013 order are exempt from private actions under CEA section 22.