CFTC Staff Letter 15-53: Extension of No-Action Relief for Southwest Power Pool

U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5000
Facsimile: (202) 418-5521 www.cftc.gov
CFTC Letter No. 15-53
No-Action
Division of Clearing and Risk
Division of Market Oversight
Division of Swap Dealer and Intermediary Oversight Senior Attorney Southwest Power Pool, Inc. 201 Worthen Drive Little Rock, Arkansas 72223-4936 Re: Extension of Time-Limited No-Action Relief with Respect to Certain Commodity Exchange Act Provisions That May Apply to Southwest Power Pool, Inc. and/or Its Participants Dear Mr. Ghormley:
The purpose of this letter is to inform you that the Division of Clearing and Risk, Division of Market Oversight, and the Division of Swap Dealer and Intermediary Oversight (“Divisions”) of the Commodity Futures Trading Commission (“Commission” or “CFTC”) are extending the expiration date of the no-action relief previously granted to Southwest Power Pool, Inc. (“Southwest Power Pool” or “SPP”) (“No-Action Relief”).1 On February 20, 2014, the Divisions granted time-limited No-Action Relief to Southwest Power Pool. In CFTC Letter No. 14-18, the Divisions stated that they would not recommend that the Commission take enforcement action against Southwest Power Pool, its members, or certain market participants for failure to comply with certain provisions of the Commodity Exchange Act (“CEA”) and the implementing regulations thereunder (“Commission regulations”), as applicable, 2 with respect to: (1) contracts, agreements and transactions for the purchase or sale of certain “transmission congestion rights,” “energy transactions,” and 1 See CFTC Letter Nos. 14-18 (Feb. 20, 2014), 14-109 (Aug. 22, 2014) and 15-05 (Feb. 27, 2015), available at:
http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/14-18.pdf, http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/14-109.pdf, and http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/15-05.pdf, respectively. 2 The No-Action Relief excluded from its scope the Commission’s general anti-fraud and anti-manipulation authority, and scienter-based prohibitions under sections 2(a)(1)(B), 4(d), 4b, 4c(b), 4o, 4s(h)(1)(A), 4s(h)(4)(A), 6(c), 6(d), 6(e), 6c, 6d, 8, 9, and 13 of the CEA, and any implementing regulations promulgated under these sections including, but not limited to, Commission regulations 23.410(a) and (b), 32.4, and part 180 (collectively, the “Enforcement Provisions”). The Enforcement Provisions still apply during the No-Action Relief period.