Energy firms strive to avoid swaps-dealer designation

01/22/2012 | Bloomberg

Shell Energy North America, Vitol and other energy firms are lobbying regulators to ensure they are not designated as swaps dealers. Under the Dodd-Frank Act, companies deemed swaps dealers face trading, reporting and clearing requirements. "As proposed, the rule would subject a local electric utility and Goldman Sachs to the same regulation," said Rep. Frank Lucas, R-Okla. "It doesn't make any sense, and unless the rule changes significantly, it will deter the very hedging activities that energy and agriculture companies employ to reduce the costs of electricity and food for consumers."

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