Regulatory and Legal Risk in Energy Trading At A Glance

Capabilities and Services

While increased regulatory diligence and strong enforcement of existing statutes can be positive trends, stepped up disclosure demands and blanket subpoenas for information only add to uncertainty. The Commodity Futures Trading Commission (CFTC), the Federal Energy Regulatory Commission (FERC), and other regulatory bodies are asserting expanded -- and sometimes overlapping -- authority to require energy marketers, financial institutions with energy dealing and trading desks, commercial producers and processors, hedge funds, and end users to demonstrate the economic or business purpose of their energy trading activities.

The predictable result of these trends has been rising compliance and litigation costs. NERA helps clients control those costs by managing risks. Our economists and experts have helped numerous organizations, including energy producers, utilities, financial institutions, and traders, to limit regulatory and legal risk. We understand the special factors that make energy trading different from other commodities or financial markets, and offer an unparalleled combination of backgrounds and knowledge.