Portfolio margining on hold as energy amendments stall process
The Commodity Futures Trading Commission (CFTC)
reauthorisation bill was last week in limbo as Congress
appeared ready to tackle other issues when it reconvenes later
this month. The US Senate did not vote on the reauthorisation
bill before its Christmas break, leading industry watchers to
wonder if it will be considered at all in 2006.
Although the reauthorisation process has traditionally been
drawn out, there had been hopes that it would be easier on this
occasion in the wake of 2000's commodity futures modernisation
The major roadblock the bill has encountered centres around
two energy amendments. The first of these controversially
expands CFTC's oversight of the cash and OTC natural gas
markets and was tacked onto the House of Representatives bill
that was passed last year. Meanwhile, senator Diane Feinstein
has been developing her own energy amendment for the Senate
bill, although the details have not yet been released. Congress
was due to reconvene on 18 January, but it was not clear if
reauthorisation was on the schedule for the Senate.
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