Webcast – Energy Derivatives: Effectively Navigating Dodd-Frank Compliance and Implementation Challenges

November 13, 2014

​Historically over the counter (“OTC”) derivatives, which are frequently used by energy companies for hedging purposes, were not subject to significant regulation. However, legislation set forth in Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the implementing regulations of the Commodity Futures Trading Commission (“CFTC”) have subjected OTC derivatives, including energy swaps and options, to robust regulatory oversight and onerous requirements. While many of the CFTC’s regulations are in place, several key rules remain and the implementation of existing rules has proven difficult for energy companies.

This 60-minute program addresses recent developments at the CFTC, compliance and implementation challenges for energy derivatives users and what energy derivatives users can expect going forward. Join us for a lively discussion on a wide range of topics affecting energy companies and other users of energy derivatives, including:

  • The scope of the swap definition and the classification of contracts with embedded volumetric optionality
  • Margin requirements for uncleared swaps
  • Position limits and aggregation
  • Reporting concerns
  • Mandatory clearing and the availability of the end-user exception
  • Suspension of early termination rights under certain derivatives contracts

View Slides [PDF]


Moderator:

William S. Scherman, Chair of Gibson Dunn’s Energy, Regulation & Litigation practice and former General Counsel of the Federal Energy Regulatory Commission and chief of staff and senior legal and policy advisor for the FERC beginning in 1987. Mr. Scherman advises companies on litigation, commercial, regulatory and legislative matters relating to the U.S. and international energy markets, and has litigated high-profile energy investigation and enforcement matters before the FERC and in the federal courts and represents large electric utilities before the FERC and state regulators.

Panelists:

Lael E. Campbell, Director Regulatory and Governmental Affairs, Constellation Energy (An Exelon Company). Mr. Campbell has been with Exelon/Constellation since 2008, where he currently serves as a Director of Regulatory and Governmental Affairs supporting the Constellation business. Prior to joining the Regulatory Affairs team, Mr. Campbell was responsible for regulatory and compliance matters associated with Constellation’s commodity trading business. A former CFTC attorney, Mr. Campbell has taken a leading role in the company’s Dodd-Frank implementation and regulatory initiatives, advising management on CFTC rulemakings and internal contingency planning, and overseeing Dodd-Frank compliance implementation teams. Previously a Senior Trial Attorney with the Commodity Futures Trading Commission, Mr. Campbell served as lead counsel on a variety of cases involving the derivatives markets. He began his career as a federal appellate lawyer and special assistant U.S. attorney for the U.S. Social Security Administration, where he argued a number of cases in Federal Circuit Court of Appeals.

Jeffrey L. Steiner, Counsel in Gibson Dunn’s Energy, Regulation & Litigation practice. Mr. Steiner assists clients with requirements resulting from the Dodd-Frank Act and with other matters relating to derivatives, the Commodity Exchange Act and the CFTC. Mr. Steiner previously served as Special Counsel in the Division of Market Oversight at the CFTC and served as Team Lead for the Real-Time Public Reporting of Swap Transaction Data (Part 43) rulemaking team for both the proposed and final rules. He also previously served as an attorney-advisor in the CFTC’s Division of Market Oversight.

Jennifer C. Mansh, Associate in Gibson Dunn’s Energy, Regulation & Litigation practice. Ms. Mansh advises clients on a wide range of energy litigation, regulatory, and transactional matters before the Federal Energy Regulatory Commission, the Commodity Futures Trading Commission, the Department of Energy, the Nuclear Regulatory Commission, and state public utility commissions. Prior to joining Gibson Dunn, Ms. Mansh was an associate at another large multinational law firm. She also served as a senior analyst at Exelon Corporation, where she worked in the Financial Planning & Analysis division of their wholesale marketing group.