U.S. COMMODITY FUTURES TRADING COMMISSION

Three Lafayette Centre

1155 21st Street, NW, Washington, DC 20581

Telephone: (202) 418-5000

Facsimile: (202) 418-5521

www.cftc.gov

March 29, 2013

CFTC Letter No.13-05

No-Action 

March 29, 2013 

Division of Clearing and Risk 

Division of Swap Dealer and Intermediary Oversight 

Division of Market Oversight

Extension of Staff No-Action Relief with Respect to Certain CEA Provisions 

That May Apply to Certain RTOs, ISOs, and/or Their Participants

On October 11, 2012, the Division of Clearing and Risk, the Division of Swap Dealer and 

Intermediary Oversight and the Division of Market Oversight (collectively, the “Divisions”) 

granted time limited no-action relief to certain Independent System Operators and Regional 

Transmission Organizations (collectively, the “Requesting Parties”) and their market 

participants.1 As discussed therein, the Commodity Futures Trading Commission (the 

“Commission”) had proposed to grant, in part, a request from the Requesting Parties for 

exemptive relief for certain transactions offered or sold pursuant to their tariffs or protocols. In a 

letter dated March 22, 2013, the Requesting Parties requested that the Divisions extend the time 

limited no-action relief.

On March 28, 2013, the Commission approved a final order pursuant to 4(c)(6) of the 

Commodity Exchange Act (“CEA”) (the “Final Order”)2to exempt, subject to certain conditions 

and limitations contained therein, contracts, agreements, and transactions for the purchase or sale 

of the limited electric energy-related products that are specifically described within the final 

order from the provisions of the CEA and Commission regulations, with the exception of the 

Commission’s general anti-fraud and anti-manipulation authority, and scienter-based 

prohibitions, under CEA sections 2(a)(1)(B), 4(d), 4b, 4c(b), 4o, 4s(h)(1)(A), 4s(h)(4)(A), 6(c), 

6(d), 6(e), 6c, 6d, 8, 9, and 13 of the Act and any implementing regulations promulgated under 

these sections including, but not limited to Commission regulations 23.410(a) and (b), 32.4, and 

part 180 (the “Enforcement Provisions”) 

 

1 CFTC Letter No. 12-11 (October 11, 2012).

2

Final Order in Response to a Petition From Certain Independent System Operators and 

Regional Transmission Organizations to Exempt Specified Transactions Authorized by a Tariff 

or Protocol Approved by the Federal Energy Regulatory Commission or the Public Utility 

Commission of Texas From Certain Provisions of the Commodity Exchange Act Pursuant to the 

Authority Provided in Section 4(c)(6) of the Act, available at 

http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/federalregister032813b.pdf
March 29, 2013

Page 2

To give each Requesting Party time to enact certain tariff, protocol or rate schedule 

changes and take other steps necessary (a) to satisfy the conditions to the exemption contained in 

paragraphs 4(b), and 6(a)(1) or 6(b)(1), of the Final Order and (b) to operate within the scope of 

that exemption, specifically as set forth in paragraph 2(b) of the Final Order, the Divisions, to the 

limited extent and for the limited time periods set forth below, will not recommend that the 

Commission commence an enforcement action for failure to comply with any provision of the 

CEA or the Commission’s regulations against any of the Requesting Parties or persons who 

participate in the Requesting Parties’ markets who, in either such case, otherwise fall within the 

scope, and comply with the conditions, of the Final Order.

(1) Through April 30, 2013, for Requesting Parties that have not submitted and had 

accepted by the Commission (or its delegee pursuant to paragraph 7) a legal opinion 

or memorandum of outside counsel as required by paragraph 6(a)(1) (for Requesting 

Parties subject to the jurisdiction of the Federal Energy Regulatory Commission 

[“FERC”]) or paragraph 6(b)(1) (for the Electricity Reliability Council of Texas

[“ERCOT”]) of the Final Order, but only with respect to the fact that they have not 

yet complied with that condition.

(2) Through September 30, 2013, for Requesting Parties whose tariffs, rate schedules, 

protocols (each, a “Tariff”), or other governing documents include a requirement that

the Requesting Party notify its members prior to providing information to the 

Commission in response to a subpoena or other request for information or 

documentation, but only with respect to the fact that they have not complied with the 

condition set forth in paragraph 4(b) of the Order.

(3) Through September 30, 2013, for participants in the Requesting Parties’ markets who

a. Are or would have been eligible to participate in the Requesting Parties 

markets under any Tariff that, as of October 11, 2012, had been approved 

or permitted to take effect by (i) in the case of ERCOT, the Public Utility 

Commission of Texas or (ii) in the case of all other Requesting Parties, FERC, 

but 

b. are not persons described in paragraph 2(b) of the Final Order,

and for the Requesting Parties themselves, but only (in each case) with respect to the 

fact that such participants are excluded from the scope of the Final Order due to the 

limitation of paragraph 2(b) thereof.

Nothing in this staff no-action letter in any way limits the Commission’s authority with 

respect to any person, entity or transaction pursuant to the Enforcement Provisions. Further, the 

no-action position taken herein is taken by the Divisions only and does not bind the Commission 

or any other Division or Office of the Commission’s staff. As with all no-action letters, the 

Divisions retain the authority to condition further, modify, suspend, terminate or otherwise 

restrict the terms of the no-action relief provided herein, in their discretion. 
March 29, 2013

Page 3

If you have any questions regarding this extension, please contact Robert Wasserman at 

rwasserman@cftc.gov or (202) 418-5092, or M. Laura Astrada at lastrada@cftc.gov or (202) 

418-7622.

__________________ 

Ananda Radhakrishnan 

Director, DCR 

_________________

Gary Barnett 

Director, DSIO 

__________________ 

Richard Shilts 

Acting Director, DMO