Saturday, October 13, 2012
Dodd-Frank Poses Unique Challenges for Energy Firms
Energy and other commodity businesses recently caught a break when a U.S. District Court judge ruled against a Dodd-Frank provision on trading position limits. But because Dodd-Frank focuses substantially on regulating over the counter derivatives and making them more transparent, companies using energy derivatives will be impacted just as much, if not more so, than banks in some ways, she said.
"For energy companies, the biggest challenge will be juggling how to live in an environment of uncertainty and possible increases in costs," Valladares wrote in the first of a series of reports on Dodd-Frank's potential impact on various sectors of the business world.
Valladares, a CME Group featured contributor, is managing principal with MRV Associates, a New York based capital markets and financial regulatory consulting firm.
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