New Regulations Apply Anti-Fraud Language to Prevent Oil Market Manipulation; Banning False Information Should Protect Integrity of Price Discovery Process; American Petroleum Institute Objects

摘要

The Federal Trade Commission (FTC) on 8/6/09 voted 3-1 to approve a 66-page final rule that prohibits market manipulation in wholesale petroleum markets. Commissioner William Kovacic dissented. "I want to make it clear that I agree with Commissioner Kovacic's misgivings," added Commissioner Thomas Rosch. The rule, issued 8/4/09 and effective 11/4/09, implements Title VIII of the Energy Independence and Security Act (EISA) of 20071 and draws upon the anti-fraud provisions in Securities and Exchange Commission (SEC) Rule 10b-5. Any party violating the rule faces civil penalties of up to $1 million per violation per day, in addition to any relief available to the agency under its enabling statute, the FTC Act.