New York Mercantile Exchange has abandoned its support of
Senator Dianne Feinstein's proposed legislation aimed at
tightening regulation of energy markets in the US.
A year on from its enthusiastic endorsement of Feinstein's
attempts to introduce new energy market regulation, exchange
president Bo Collins said so much has changed in the
marketplace that regulators need to hold off from bringing
further restrictions to the market. December 2000's Commodity
Futures Modernisation Act has brought about sweeping changes,
"We need to wait because a lot has changed in the market,"
said Collins. He added that the level of co-ordination between
Federal Energy Regulatory Commission (Ferc) and Commodity
Futures Trading Commission (CFTC) had allowed a thorough
analysis of energy markets post-Enron and last year's
admissions of round trip trading by energy merchant companies.
"CFTC has done a great job in keeping up with the pace of
change [in the markets]," he said. "Their survey of our
marketplace is very real time? That market sector has become
remarkably transparent where it wasn't before."
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