Since the 2008/2009 global financial markets crisis, policymakers have focused heavily on regulations related to the trading and clearing of derivatives including derivatives on various commodities, such as interest rates and various indices, as well as energy commodities, agricultural commodities, metals, and other related derivatives. Large and small entities, both financial and commercial, which trade and hedge in these important markets are facing the introduction of broader licensing and registration requirements; a plethora of new record-keeping and reporting obligations; new rules on margin, regulatory capital and position limits; and significant extensions to regulatory enforcement regimes covering manipulation and market abuse. In addition, global regulators now increasingly regulate physical commodity markets that underlie derivatives markets.
In this environment, it has never been more important for commodity traders, financial institutions, oil majors, utilities and other commercial end-users, intermediaries, funds, exchanges and clearing houses, as well as others engaged in the commodity markets - like you - to have a clear and deep understanding of how such regulation applies to your businesses, to your commodity transactions and to your risk management practices. This is where we can help. At Reed Smith, we understand the importance of incorporating regulatory strategy into business objectives, and we are skilled in helping you anticipate, navigate and plan for on-going regulatory changes, address risk management concerns, structure transactions to meet business and regulatory purposes, and develop policies and procedures to comply with global and local requirements. Through our global practice we can provide you, even as you operate across borders, with insight into how different regimes may provide arbitrage opportunities for your business strategy, overlap or leave regulatory uncertainties or gaps, or require cross-border recognition of regulatory regimes or registrations in multiple jurisdictions.
We offer you international teams of commodity regulatory and disputes authorities to navigate the complex regulatory processes, and provide a highly effective and coordinated response to local and global investigations and enforcement matters, including dawn raids and antitrust investigations. We also assist you in conducting internal audits and investigations. So, if you need a team to advise on an investigation by, for example, FCA, CFTC, Ofgem, FERC, DOJ, the European Commission and/or any exchange, local authority, self-regulatory or industry organization, regional transmission operator or national competition authority, we are able to quickly assemble and coordinate a team of appropriate enforcement lawyers.
