On June 16th the CFTC voted to delay the full implementation of Dodd Frank to "...provide the Commission with the opportunity to reexamine the status of final rule making in light of the changed regulatory landscape at the time."

So, once again, everyone is asking what happens next and how will it impact energy hedging and trading?  In short, the answer is no one knows but we should find out by December 31st.  Great answer, isn't it?

Once again, the fine folks at Haynes and Boone have done a solid job translating the legal jargon (and whatever you call the language they're speaking in Washington these days) into layman's term in their recent article in Oil & Gas Investor titled Dodd-Frank Revisted.  In summary, the article states:

Based on what we know now, we can be cautiously optimistic that the "commercial end user exception" will be meaningful, and may provide energy companies with the opportunity to continue using hedges to mitigate commodity risk. We have a long way to go before the consequences of the Act filter through the regulations and markets generally.

Likewise, Sullivan & Cromwell has produced an update on the delay/exemptions in a white paper titled CFTC Exemptive Relief Upon Effective Date of Title VII of Dodd-Frank, which is worth a read as well.

That's all for now but, in the meantime, if anyone can track down a U.S. congressman/congresswoman who can honestly explain how Dodd-Frank is good for energy producers, marketers and consumers (yes, all three), specifically as it relates to commodity/energy hedging, we'll send you a complementary barrel of crude oil.