CFTC Meeting - Basis Contracts

Posted on April 28, 2010 by Vorys

The Commodity Futures Trading Commission (CFTC) met yesterday to consider whether certain contracts offered for trade on ICE, the Natural Gas Exchange, or the Chicago Climate Exchange, performed significant price discovery functions - and therefore must be regulated.  The Staff believes that 7 natural gas basis contracts meet the necessary criteria, with price locations at the Southern California border (with Arizona), PG&E Citygate (San Francisco area), Northwest Rockies (Wyoming, Utah, and Colorado), Alberta (Canada), Chicago, Houston Ship Channel, and Waha (West Texas near New Mexico border).

For more, including video, see here.

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