DAY ONE – Thursday, November 17, 2011
10:00 Main Conference Registration
10:35 Co-Chairs’ Welcoming Remarks
Robert S. Fleishman
Of Counsel
Covington & Burling LLP (Washington, DC)
Charles Cerria
Associate General Counsel – Trading
Hess Corporation (New York, NY)
10:40 Complying with Dodd-Frank’s Overhaul of the OTC Derivatives Trading Market
Charles Cerria
Associate General Counsel – Trading
Hess Corporation (New York, NY)
Catherine E. Napolitano
Director & Assistant General Counsel Bank of America
Merrill Lynch (New York, NY)
Alexandra Guest
Director - Global Markets Compliance
Barclays Capital Inc. (New York, NY)
Elliot Cohen
Associate General Counsel
Russell Investments (Seattle, WA)
Jeffrey Nichols
Partner
Haynes and Boone, LLP (Houston, TX)
Alan Sobba
Chief Policy and Communications Officer
International Derivatives Clearing Group LLC (New York, NY)
Panel Leader and Moderator:
Allison Lurton
Of Counsel
Covington & Burling LLP (Washington, DC)
(former senior counsel at the CFTC)
- Identifying SPDCs and preparing for CFTC’s coming rulemaking
- Handling position limits on certain commodity transactions in OTC and exchange trading:
- How is CFTC controlling these transactions?
- Consequences for exceeding limits
- Impact to physical vs. financial markets
- What every Risk Oversight Committee needs to know and do to implement Dodd-Frank
- Arguments for and against establishing position limits
- Benefits of position limits: Can CFTC curb the tendency to take huge positions through its regulations?
- Consequences of position limits: Who will balance risk-averse positions in volatile times?
- Treating SPDCs as futures: strategies to avoid violations
- Understanding the impact of financial reform on trading OTC derivatives: how to maintain market liquidity?
- Determining whether the manipulation regulations apply to swaps
- Defining manipulation: considering Radley’s holding and contrary CFTC definitions when training traders
- Fulfilling newly established record keeping requirements
12:20 Networking Luncheon for Speakers and Delegates
1:30 Regulatory Roundtable: Preparing for and Responding to Government Enforcement Actions & How Market Participants Can Ensure Compliance in a Multi-Agency Regulatory Environment
Dan M. Berkovitz
General Counsel
Commodity Futures Trading Commission (CFTC)
Lauren Rosenblatt
Chief, Branch 5
Division of Investigations, Office of Enforcement
Federal Energy Regulatory Commission (FERC)
Robert Ivanauskas
Policy Advisor to Commissioner Moeller
Federal Energy Regulatory Commission (FERC)
James F. Mongoven
Deputy Assistant Director, Bureau of Competition
Federal Trade Commission
Robertson Park
Assistant Chief, Fraud Section, Criminal Division
United States Department of Justice
Jeff Lam
Chief Compliance Officer
Powerex Corp. (British Columbia, Canada)
Vincent Duane
Vice President & General Counsel
PJM Interconnection (Norristown, PA)
Panel Leader and Moderator:
Robert S. Fleishman
Of Counsel
Covington & Burling LLP (Washington, DC)
This session is designed to offer enforcement insights by the key energy regulatory bodies, and will explain the impacts of pending federal legislation on the energy trading practice. A distinguished faculty of the key federal regulatory bodies, leading practitioners from top firms and in-house practitioners will walk delegates through the complex issues that are emerging.
3:15 Afternoon Refreshment Break
3:30 Updating Compliance Programs to Respond to Overlapping FERC and CFTC Jurisdiction and Responding to Multi-Agency Regulatory Investigations and Enforcement Actions
Kelly Funderburk
Director, Commodities Counsel
Merrill Lynch Commodities, Inc (Houston, TX)
Lopa Parikh
Director, Federal Regulatory Affairs for Energy Supply
Edison Electric Institute (Washington, DC)
Bob Anderson
Executive Director
Committee of Chief Risk Officers (The Woodlands, TX)
Robert S. Fleishman
Of Counsel
Covington & Burling LLP (Washington, DC)
(formerly of the Enforcement Division of Federal Energy Regulatory Commission (FERC)
- Maintaining cross-jurisdictional compliance
- Identifying differences in standards and rules of different agencies
- Preparing for divergent investigations and enforcement goals
- Enhancing compliance programs to deal with overlapping jurisdiction
- Identifying how CFTC jurisdiction will continue to expand
- How much power/jurisdiction will FERC cede?
- Maximizing the effectiveness of surveillance in compliance programs to reduce risk
- Incorporating surveillance into compliance programs
- Creating a surveillance program• Strategies to capture any irregularities by using a surveillance system while minimizing costs
- Mirroring surveillance programs used by the exchanges
- Managing resources vs. data management: deciding how to build a compliance infrastructure
4:40 Managing the Overhaul to the Swap Market, Changing Definitions and New Costs Associated with Clearing Provisions
Matthew Picardi
Vice President-Regulatory Affairs
Shell Energy North America (U.S.), L.P. (Albany, NY)
Thane T. Twiggs
Compliance Officer
Citigroup Energy Inc. (Houston, TX)
David Louw
Head of Compliance
Macquarie Energy (Houston, TX)
Mark N. Rae
Partner
Stroock & Stroock & Lavan LLP (New York, NY)
Panel Leader and Moderator:
Peter Y. Malyshev
Of Counsel
Winston & Strawn LLP (Washington, DC)
(former lawyer at the CFTC’s Division of Economic Analysis)
General
- Implications of OTC clearing for the commodity markets
- Gaining a greater understanding of the implications of clearing trades
- End user v. swap dealer v. major swap participant – risks and benefits associated with the classifications
- Segregation requirements for uncleared swaps
- Registration and regulation of swap dealers and major swap participants
New Business Conduct Practices for Swap Dealers and Major Swap Participants
- Conflicts of interest
- End user issues
- Special entity issues (e.g., dealing with semi-governmental entities)
New Reporting Requirements
- Regulatory reporting
- Real time reporting
- Recordkeeping
6:00 Conference Adjourns
DAY TWO – Friday, November 18, 2011
7:30 Continental Breakfast
8:00 Responding to New Requirements and Limitations on Hedging
James C. Allison
Regional Risk Manager Natural Gas and Power, North America Conoco
Phillips Company (Houston, TX)
Ronald Oppenheimer
Senior Vice President and General Counsel
Vitol, Inc. (Houston, TX)
Sebastian Tiger
Director, General Counsel Division
Credit Suisse Securities (USA) LLC (New York, NY)
Victoria T. Sharp
Managing Director
Citigroup Energy Inc. (Houston, TX)
Tom LaSala
Managing Director and Chief Regulatory Officer
CME Group Inc. (Chicago, IL)
Panel Moderator:
Paul J. Pantano, Jr.
Partner
Cadwalader, Wickersham & Taft LLP (Washington, DC)
(former trial attorney in the Division of Enforcement of the CFTC)
- What is a bona fide hedge as defined by the CFTC?
- Is hedging going to be cost prohibitive for some market participants?
- Is physical hedging going to replace financial hedges?
- Understanding the risks and rewards associated with position limits- Will position limits discourage hedging and increase volatility?
- How will the affiliate rule affect position limit reporting?
- Exemptions from the price discovery rule
- Ensuring position reports accurately reflect underlying risks
- Creating, implementing and updating programs to keep traders current with applicable position limits, trading strategies and approved products
9:15 Ensuring Compliance with FERC Reliability Standards & Transparency Rules
Craig Glazer
Vice President - Federal Government Policy
PJM Interconnection (Washington, DC)
Joe White Manager,
Intrastate Regulatory Affairs
Enbridge Energy Company, Inc. (Houston, TX)
Regina Y. Speed-Bost
Partner
Schiff Hardin LLP (Washington, DC)
(former advisory attorney in the FERC’s Office of General Counsel)
Sean A. Atkins
Partner
Alston & Bird LLP (Washington, DC)
Vincenzo Franco
Member
Van Ness Feldman, P.C. (Washington, DC)
Matthew D. McVee
PartnerT
routman Sanders LLP (Portland, OR)
Panel Leader and Moderator:
Sheila Slocum Hollis
Partner
Duane Morris LLP (Washington, DC)
(the first director of the Office of Enforcement of FERC)
- Understanding FERC Electric Reliability Rules
- Update on the status of investigations and enforcement actions
- Crafting compliance policies to meet FERC reliability standards
- Responding to FERC’s transparency requirements
- Avoiding affiliate abuses by segregating market participants from transmission providers
- Determining how you can meet the new transparency requirements
10:40 Morning Coffee Break
10:45 Defending Against Allegations of Market Manipulation
Michael Loesch
Sr. Counsel
Fulbright & Jaworski L.L.P. (Washington, DC)
(former Chief of Staff and Chief Operating Officer, U.S. Commodity Futures Trading Commission (CFTC)
Michael Lloyd Spafford
Partner
Bingham McCutchen LLP (Washington, DC)
Kevin J. Lipson
Partner
Hogan Lovells (Washington, DC)
Martin Ramirez
Managing Director
SGE COMPLIANCE (Stamford, CT)
- Understanding the definition of manipulation, as used by FERC, CFTC, and FTC
- Effectively training traders to work with compliance officers and maintain accountability for trades: Responding to trades seen as having no economic purpose; Recognizing that size is tantamount to manipulation in the eyes of FERC
- Working with senior management to understand the implications of a market manipulation enforcement action
- Complying with regulations to avoid civil and criminal Penalties
- Amaranth/Hunter dissected: Market manipulation and beyond
- Update on other FERC market manipulation cases
11:40 Meeting Cross-Border Requirements: Understanding Changing International Regulations and Ensuring Cross-Border Compliance
Bray Dohrwardt
Vice President, Head of Upstream Legal, Government & Regulatory Affairs
Direct Energy (Houston, TX)
Gary Barnett
Partner
Linklaters (New York, NY)
Ronald H. Filler
Professor of Law
Director, Center on Financial Services LawNew York Law School
(former Managing Director in the Capital Markets Prime Services Division at Lehman Brothers)
- EU and international regulatory developments affecting commodity derivatives
- Dealing with inconsistent market abuse rules across Europe
- European definitions of key terms and how they differ from US terminology
- Developing responses to international compliance regulations: are international solutions available?
- Understanding international penalty provisions
12:35 Minimizing Civil Penalties and Reputational Harm when Wrongdoing is Found by FERC and Mitigating the Fallout from FERC’s Penalty Guidelines
George D. Billinson
Of Counsel
Morgan, Lewis & Bockius LLP (Washington, DC)
(former attorney-adviser with the Enforcement Division of FERC’s Office of Market Oversight and Investigations)
Sandy Rizzo
Partner
Bracewell & Giuliani LLP (Washington, DC)
David L. Schwartz
Partner
Latham & Watkins LLP (Washington, DC)
James E. “Jim” Bowers
Senior Counsel
Day Pitney LLP (Hartford, CT)
William L. Massey
Partner
Covington & Burling LLP (Washington, DC)
- Understanding how proper surveillance can mitigate civil penalties in the event of wrongdoing
- Mitigating damages through self-reporting
- Creating internal audit teams, assigning responsibility and delegating roles
- Cooperating with investigations
- Evaluating recent enforcement to create compliance programs
- Lessons learned from recent enforcement actions
- Proper documentation of trading activity
1:50 Lunch for Master Class B Participants
Conference Details