Dec 192022
2022 Sidley Energy Enforcement Update
This Sidley Energy Enforcement update covers:
- Federal Energy Regulatory Commission (FERC) approves settlement between Enforcement staff and Coaltrain
- Both FERC and Commodity Futures Trading Commission (CFTC) enforcement reports highlight the respective agency’s continued commitment to strong enforcement
- U.S. Court of Appeals for the Fifth Circuit upholds FERC’s finding that BP manipulated the natural gas market but remands to FERC to recalculate its $20 million penalty
- CFTC orders Glencore to pay a record-setting penalty of $1.186 billion
- CFTC and Securities and Exchange Commission (SEC) orders over $1.8 billion in fines against 11 firms for recordkeeping failure — employees using unapproved method of communications such as texts and WhatsApp on personal devices
Dec 152021
Sidley Energy Enforcement Update
This Sidley Update addresses the following:
- District court judge finds that FERC may not pursue joint and several liability and disgorgement in Coaltrain case – FERC seeks interlocutory appeal.
- FERC Report on Enforcement highlights increased enforcement activity in 2021.
- FERC approves settlement between Enforcement staff and Golden Spread.
- FERC orders penalties against GreenHat Energy, LLC and individuals.
- DOJ and CFTC charge Puerto Rico resident and his firm for misappropriation of nonpublic information and fictitious trading.
Apr 172020
Energy Enforcement Update
With the market evolving rapidly, we are pleased to provide you with the following enforcement updates:
- FERC extends deadlines for filing EQRs and Form No. 552 to June 1, 2020.
- Trading company challenges PJM FTR forfeiture rule.
- PJM submits tariff revisions to enhance rules for evaluating and managing credit risk.
- FERC establishes paper hearing to evaluate proposed rejection in bankruptcy.
- Parties file summary judgment motions and reply briefs in FERC v. Coaltrain Energy.
- Kraft conditionally withdraws its motion for sanctions in CFTC v. Kraft Food Group, Inc.
- Settlement discussions continue in FERC v. Richard Silkman et al.
- Comments filed on the request for technical conference and petition for rulemaking to update credit and risk management in the ISO/RTO markets.
- FERC issues Order 860-A on Connected Entity Information.
- Fourth Circuit finds FERC’s action timely in FERC v. Powhatan Energy Fund, LLC.
- CFTC approves proposed rule on position limits for derivatives.
- FERC issues notice of intent to revoke MBR authority to thirteen entities for failure to file EQRs.
- FERC approves a Stipulation and Consent Agreement between the Office of Enforcement and Emera Energy Incorporated.
May 152019
A New Roadmap: CFTC Releases Its First-Ever Public Enforcement Manual
On May 8, 2019, the Commodity Futures Trading Commission (CFTC) Division of Enforcement (DOE or Division) released its first publicly available Enforcement Manual. The Manual provides an overview of the Division and sets out the general policies and procedures that guide its Staff in detecting, investigating and prosecuting violations of the Commodity Exchange Act (CEA) and Commission regulations. According to its simultaneous press release, in publishing the Manual the CFTC intends to “increase transparency, certainty, and consistency, and, more generally, to advance the rule-of-law principles that underpin all DOE and CFTC enforcement actions.”
Jan 242019
Energy Enforcement Update
In our first enforcement update for 2019, we cover a range of issues (including some news from the end of 2018):
- FERC opens investigations into rates charged by three interstate natural gas companies;
- Powhatan and Chen file opening appellate brief;
- Judge suspends CFTC case against Kraft because of the partial government shutdown;
- FERC increases maximum civil penalties for violations;
- FERC approves settlement between FERC Enforcement and Algonquin;
- Judge rules that FERC action against Silkman/CES is not time-barred by statute of limitations; and
- Judge finds CFTC fails to meet burden on manipulation claims against DRW and Wilson.
Nov 272018
Energy Enforcement Update
This week’s enforcement update covers:
- FERC issues 2018 Report on Enforcement showing continued focus on fraud and market manipulation;
- CFTC Enforcement Director discusses Enforcement trends and CFTC releases Annual Report on enforcement;
- CFTC orders Commerzbank AG to pay $12 million for swap dealing violations and misleading statements to the CFTC;
- Former commodities trading executive arrested for scheme to defraud employer by hiding trading losses; and
- CFTC and Kraft file oppositions to motions for summary judgment.
Oct 182018
Energy Enforcement Update
This week’s enforcement update covers:
- CFTC announces Insider Trading & Information Protection Task Force;
- FERC approves settlement with Wheelabrator Technologies Inc. related to capacity payments;
- Second Circuit upholds New York zero emission credits for nuclear facilities;
- Petrobras pays over $1.7 billion to settle corruption charges with U.S. and Brazilian authorities;
- Judge denies Powhatan and Chen motion to dismiss on statute of limitations grounds;
- CFTC finds Mizuho Bank, Ltd. engaged in spoofing of Treasury futures and Eurodollar futures;
- CFTC finds that proprietary trading firm Geneva Trading USA, LLC engaged in spoofing;
- FERC Enforcement requests that Commission vacate Order to Show Cause to Footprint; and
- CFTC orders futures trader and trading firm to pay $2.3 million in penalties for spoofing and manipulative scheme.
Sep 172018
Energy Enforcement Update
This week’s enforcement update covers:
- Commodity Trading Adviser (CTA) violation settled with CFTC;
- CFTC and Kraft file motions for summary judgment;
- CFTC files 12 enforcement actions addressing registration, position limits, recordkeeping, supervision and reporting;
- Seventh Circuit upholds Illinois zero emissions credits for nuclear facilities;
- Judge denies class action lawsuit alleging antitrust violations in New England gas market;
- CFTC Staff issues report on impact of U.S. tight oil on NYMEX WTI futures contract;
- CFTC orders BNP Paribas to pay $90 million penalty for attempted manipulation and false reporting of U.S. Dollar ISDAFIX benchmark swap rates; and
- FERC issues notice of intent to revoke MBR authority to five entities for failure to file EQRs.
Jul 302018
Energy Enforcement Update
This week’s enforcement update covers:
- FERC issues Order Approving ENPM Stipulation and Consent Agreement;
- Footprint Elects De Novo Review in FERC Show Cause Proceeding;
- CFTC Announces Its Largest Ever Whistleblower Award of Approximately $30 Million, and First Award to a Foreign Whistleblower;
- CFTC Staff Issues Research Report on Sharp Price Movements in the Commodity Futures Markets
- SEC and CFTC Announce Approval of New MOU
Jun 252018
Energy Enforcement Update
This week’s enforcement update covers:
- FERC issues Order to Show Cause to Footprint for alleged tariff violations and submission of false information;
- The Supreme Court denies TOTAL petition for writ of certiorari;
- FERC settles with Duke Energy regarding alleged violation of FERC market behavior rule on communications;
- CFTC orders Société Générale S.A. to pay $475 million penalty to resolve charges of alleged LIBOR and Euribor manipulation; and
- U.S. Department of Justice announces new policy on coordination of corporate penalties.