11-ooool

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Attach:

Holtan, Alexander S. <AHoltan@hunton. com>

Thursday, August 19, 2010 5:11 PM

OTCDefinitions <OTCDefinitions@CFTC.gov>; secretary <secretary@CFTC.gov>

Sweeney, R. Michael <rsweeney@hunton.com>; McIndoe, David

<dmcindoe@hunton.com>; Menezes, Mark W. <mmenezes@hunton. com>

Working Group of Commercial Energy Firms Comments on Acknowledgment

Letters for Customer Funds and Secured Amount Funds-75 FR 47738

Working Group of Commercial Energy Firms Letter on FCM Acknowledgement

Letters_(32180794)_(4). pdf

Dear Secretary Stawick:

On behalf of the Working Group of Commercial Energy Firms, Hunton & Williams LLP

submits for your consideration this letter concerning the notice of proposed rulemaking for futures

commission merchants relating to acknowledgement letters for customer funds and secured amount

funds and the many rulemakings that the Dodd-Frank Wall Street Reform and Consumer Protection Act

of 2010 (the "Reform Act") requires the Commodity Futures Trading Commission finish within one year

of the Reform Act’s enactment. If you have any questions, please contact Michael Sweeney at (202)

955-1944, David McIndoe at (202) 955-1947 or Mark Menezes at (202) 419-2122. Thank you for your

consideration.

Respectfully,

Alex Holtan

Alexander Holtan*

Associate *not admitted in DC

AHoltan@ hunton.com

Hunton & Williams LLP

1900 K Street, N.W.

Washington, DC 20006

Phone: (202) 778-2230

Fax: (202) 828-3768

*Virginia Member Only

www. hu nton.com

This communication is confidential and is intended to be privileged pursuant to applicable law. If the reader of this message is not the intended

recipient, or the employee or agent responsible to deliver it to the intended recipient, you are hereby notified that any dissemination, distribution

or copying of this communication is strictly prohibited. If you have received this message in error, please notify Hunton & Williams LLP

immediately by telephone (877-374-4937) and by electronic mail to: help_desk@hunton.com and then delete this message and all copies and

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HUNTON; ;::: WILLIAMS

HUNTON & WILLIAMS LLP

1900 K STREET, N.W.

WASHINGTON, D.C. 20006-1109

TEL 202  ̄ 955  ̄ 1500

FAX 202  ̄ 778  ̄ 2201

FILE NO: 76142.2

Augustl9,2010

David A. Stawick, Secretary

Commodity Futures Trading Commission

Three Lafayette Center

1155 21st Street, NW

Washington, DC 20581

VIA ELECTRONIC MAIL

Re: Notice of proposed rulemakingfor futures commission merchants, RIN 3038-AC72

Dear Secretary Stawick:

On behalf of the Working Group of Commercial Energy Firms (the "Working

Group"), Hunton & Williams LLP submits this letter concerning the notice of proposed

rulemaking for futures commission merchants ("FCMs") relating to acknowledgement letters

for customer funds and secured amount funds1 and the many rulemakings that the Dodd-Frank

Wall Street Reform and Consumer Protection Act of 2010 (the "Reform Act") requires the

Commodity Futures Trading Commission ("CFTC" or "Commission") finish within one year

of the Reform Act’s enactment.

The Working Group is a diverse group of commercial firms in the energy industry

whose primary business activity is the physical delivery of one or more energy commodities to

customers, including industrial, commercial and residential consumers. Members of the

Working Group are energy producers, marketers and utilities. The Working Group considers

and responds to requests for public comment regarding legislative and regulatory

developments with respect to the trading of energy commodities, including derivatives and

other contracts that reference energy commodities.

The Commission has proposed three amendments to its regulations directly affecting

FCMs.2 Additionally, Section 721(a)(13) of the Reform Act redefines FCMs, including

authorizing the Commission to further define who is, and who is not, an FCM. Furthermore,

the Commission is expected to, in the near future, detail what activities give rise to being

deemed an FCM. Thus, it appears that new rules could be issued affecting FCMs while the

Commission considers further defining FCMs.

1 75 FR 47738 (August 9, 2010).

2 17 CFR 1.20, 17 CFR 1.26, and 17 CFR 30.7.

ATLANTA AUSTIN BANGKOK BEIJING BRUSSELS CHARLOTTE DALLAS HOUSTON LONDON LOS ANGELES

McLEAN MIAMI NEW YORK NORFOLK RALEIGH RICHMOND SAN FRANCISCO WASHINGTON

www.hunton.com
David A. Stawick, Secretary

August 18, 2010

Page 2

In light of the Commission’s concurrent parallel tracks on rulemakings in regards to

FCMs and deciding who is an FCM, the Working Group respectfully suggests that the

Commission consider delaying any rulemaking affecting FCMs until it has determined the

scope of the FCM definition and the breadth of activities that would give rise to being an FCM

under the Reform Act. The Working Group’s request is similar to the action taken by the

Commission on August 18 wherein the Commission withdrew its Proposed Rule on Federal

Speculative Position Limits for Referenced Energy Contracts as it recognized its new

obligations under the Reform Act would affect the proposed rule.3

The Working Group looks forward to working the CFTC and staff in the rulemaking

process. Well implemented regulation can strengthen the derivatives markets, which benefits

regulators, market participants, and U.S. consumers.

Respectfully submitted,

R. Michael Sweeney, Jr.

David T. McIndoe

Mark W. Menezes

Counsel for the Working Group of

Commercial Energy Firms

Honorable Gary Gensler, Chairman

Honorable Scott D. O’Malia, Commissioner

Honorable Jill E. Sommers, Commissioner

Honorable Michael Dunn, Commissioner

Honorable Bart Chilton, Commissioner

Daniel Berkovitz, General Counsel

Stephen Sherrod, Acting Deputy Director, Market Surveillance Section

3 75 FR 50950 (August 18, 2010).