While some U.S. regulatory agencies are pulling back on enforcement actions, the Commodity Futures Trading Commission (CFTC) is going the other direction, planning “more than 10” fraud and market-manipulations cases in the coming weeks aimed at the derivatives industry.
FERC Agrees to Cut Bidding Nodes for Increment Offers. Here’s What This Means for Traders
The Federal Energy Regulatory Commission (FERC) made waves last week when it approved a proposal by PJM to reduce the number of bidding locations for increment offers, decrement bids and up-to-congestion transactions by nearly 90%. These virtual transactions are trades that can be used to arbitrage price differences between the day-ahead and real-time markets and hedge financial exposure to physical positions.