Exempt Commercial Markets And The Enron Loophole

Law360, New York (October 11, 2007, 12:00 AM EDT) -- On September 18, 2007, the U.S. Commodity Futures Trading Commission (CFTC) held a public hearing to discuss whether CFTC should have a greater role in regulating exempt commercial markets (ECMs).

An ECM is an electronic trading facility that operates largely outside of the CFTC’s supervision, if access is limited to sophisticated commercial traders that trade exempt commodities (such as energy commodities, metals, chemicals, emission allowances and wood pulp) on a principal-to-principal basis.

The CFTC hearing was organized in response to recent alleged manipulation of U.S. natural...
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