IN-PERSON CLASSROOM SEMINARS

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Minimizing Energy Trading Compliance Risk in The Evolving Legal Environment
What Every Trader & Support Staff Member Should Know About Identifying and Avoiding Financial Exposure in an Uncertain Regulatory & Legal Landscape

A Two-Day Classroom Seminar (CPE Approved)

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Energy market participants are facing one of the most sweeping regulatory developments in recent history with the Dodd-Frank Wall Street Reform and Consumer Protection Act. In addition, the Federal Energy Regulatory Commission has been increasingly aggressive in policing energy trading markets. Another federal regulator, the Federal Trade Commission, also has asserted jurisdiction over certain energy products. With significantly increased regulatory authority delegated to FERC and the CFTC, and the lack of detailed rules, the current regulatory climate creates an unprecedented amount of legal and financial uncertainty across energy markets. As the regulatory landscape continues to evolve, it is imperative for energy professionals to understand the ramifications of this new regulatory and enforcement structure in order to ensure compliance.

This Seminar will provide a practical approach to identifying the latest regulatory and legal developments affecting energy trading transactions, products, and markets. It will also provide insight into the best practices and standards for creating and implementing an effective energy trading training, monitoring, and compliance program. This Seminar also will provide practical steps to identifying and managing various risk aspects of the Dodd-Frank Act, FERC anti-manipulation rules, as well as the latest court rulings impacting energy trading compliance.

What You Will Learn
  • Energy Trading Risks in the Dodd-Frank Act Era
  • Drafting and managing enterprise-wide model documentation for physical forwards and financially settled derivatives
  • Identifying the Best Industry Practices for Creating and Implementing Effective Energy Trading Compliance Programs
  • Practical Considerations for Identifying and Preventing Market Manipulation
  • Credit Risk Management and Bankruptcy Considerations for Energy Market Participants
Seminar Agenda
Untitled Document

Energy Trading Risks in the Dodd-Frank Act Era:

 

  • Up-to-date review of  key terms relevant to energy trading compliance  including, but not limited to, trade option exemption, volumetric optionality in physically settled transactions, end-user exception from clearing, bona fide hedge definition, end user, eligible contract participant, position limits, inter-affiliate issues, and many more.
  • Identifying, quantifying, and managing operational and financial risk to utilities and load serving entities from the Dodd-Frank Act.
  • Ensuring that hedging strategies comply with the CFTC's interpretive guidance regarding permitted hedging including anticipatory and portfolio hedging.
  • Identifying and examining common types of transactions which may be subject to trade-option analysis including fuel supply agreements, full requirement transactions, take-or-pay agreements, firm variable load transactions, and many more.
  • Evaluating and implementing the reporting and recordkeeping requirements for reportable transactions for end-users, including the obligations of the U.S. energy companies under the European Market Infrastructure Regulation ("EMIR").

 

Drafting and managing enterprise-wide model documentation for physical forwards and financially settled derivatives:

  • Drafting and negotiating ISDA master agreement schedules, credit support documentation, and cross-product and cross-affiliate master netting agreement in the current regulatory environment.
  • Identifying and negotiating the relevant terms and conditions implementing various ISDA protocols implementing the Dodd-Frank Act and EMIR requirements.
  • Negotiating and drafting the NAESB special provisions and confirmations to ensure compliance with the relevant Dodd-Frank requirements including volumetric optionality and trade-option exemptions.
  • Identifying and drafting the relevant provisions in the EEI and WSPP master agreements to minimize regulatory and financial exposure.
  • Creating and implementing an enterprise-wide documentation standards, policies, and procedures to ensure the adequate compliance.
  • Examining the recent court decisions involving energy trading agreements and transactions.

 

Identifying the Best Industry Practices for Creating and Implementing Effective Energy Trading Compliance Programs:

 

  • Performing an enterprise-wide review of all trading activities and effectively evaluating and implementing an energy trading surveillance program consistent with the best industry practices.
  • Identifying key steps required to ensure that all traders and originators are familiar, and stay compliant with the products and markets they trade, including applicable exchange rules and protocols.
  • Identifying and implementing risk management requirements as required by the CFTC.
  • Establishing and maintaining effective compliance training for the front, middle and back offices.
  • Reviewing and modifying trading and hedging strategies to meet the new regulatory requirements.
  • Identifying the best industry practices to ensure that there is sufficient emphasis on creating and maintaining a culture of compliance both internally and externally.

 

           

 

Practical Considerations for Identifying and Preventing Market Manipulation:

 

  • Reviewing and analyze the definition of market manipulation and anti-disruptive trading practices under different regulatory agencies and recent court decisions.
  • Identifying and implementing checks and safeguards at key steps of trading or hedging to ensure that the right questions are being asked to preclude the company from creating unnecessary legal and/or financial exposure.
  • Examining the recent regulatory and court decisions regarding market spoofing, uneconomic trading, and price manipulation.

 

Credit Risk Management and Bankruptcy Considerations for Energy Market Participants:

  • Assessing the Dodd-Frank Act's implications on credit, collateral, and margin documentation, especially in light of migrations of many swaps to futures.
  • Developing and implementing consistent terms and strategies for responding to margin/collateral calls and demands for adequate assurance.
  • Examining the pros and cons of various credit terms and conditions often embedded in standardized energy contracts and definitions including material adverse change, adequate assurances, and exposure calculation.
  • The application of bankruptcy law and principles to forward contracts, swap agreements, netting agreements, futures contracts, options, and tolling agreements in light of the latest regulatory changes.
  • The latest court rulings on the status of cross-affiliate setoff provision in energy trading agreements.

 

Your Instructor
Mr. Miki Kolobara, Esq.
Mr. Miki Kolobara, Esq. is the managing attorney at Kolobara Law Firm, LLC. He practices primarily in commodities and derivatives trading law with particular emphasis on energy trading, risk management, and compliance. Prior to founding Kolobara Law Firm, Mr. Kolobara spent 15 years working for several large energy companies where he assisted in creating and implementing trading policies and procedures, drafting standard trading and credit documentation, and training front and middle office personnel about legal and contractual aspects of energy trading. He has negotiated hundreds of master agreements and documentation for physical and financial transactions, as well as structured transactions for natural gas, electricity, coal, LNG, crude oil, and emissions allowances. Mr. Kolobara serves on the Futures and Derivatives Law Committee of the American Bar Association, as well as the North American Energy Standards Board's contracting committee where he participated in drafting the NAESB standard master agreement for natural gas trading. Additionally, Mr. Kolobara is active in the International Energy Credit Associations' Contracts and Legal committee and its Dodd-Frank Act working group. As a member of the WSPP contracting committee, Mr. Kolobara participated in drafting of the WSPP standard master agreement for electricity trading. Mr. Kolobara is a frequent speaker on topics related to energy trading, hedging, risk management, and compliance.
Hotel and Seminar Information
This two-day seminar will be held at the hotels listed below or can be conducted on-site at your facilities. The seminar will start promptly at 8:00 AM and will finish at 4:30 PM on the first day. On the second day, the seminar will resume at 8:00 AM and will finish at 12:00 PM (noon). The program includes continental breakfast, lunch (on day one) and coffee breaks. Attendees also receive a professionally produced seminar manual that can serve as a valuable office reference. Dress is casual for all seminars.
COVID 19 Information: Please click here for the PGS Covid-19 policy. You can confirm each hotel's specific COVID 19 policy using the link(s) provided below.
Registration Fee and Discounts
The price for this comprehensive two-day seminar is $1,795 (USD).
Register online or Call (440) 853-1038.
  • Additional attendees and government employees receive a 10% discount.
  • Register 4 or more attendees and receive 20% Off. Special pricing is available for groups of 5 or more.
    If you want attendees to pay with separate credit cards or have other questions, please call (440) 853-1038 for assistance.
Payments and Cancellations
Payment is due prior to the start of the seminar by Visa, Master Card, American Express, or corporate check. Seminar fees will be charged to your credit card at the time of registration unless other arrangements have been made. Please make checks payable to "PGS Energy Training" 26 Teal Lane • Hilton Head Island, SC 29926. Cancellations will result in a credit that is good for 2 years which can be transferred to a colleague. Substitutions may be made at any time. For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at (440) 853-1038.
CPE Credits in Specialized Knowledge

This live group seminar is eligible for 11.0 CPE credits. Be aware that state boards of accountancy have final authority on the acceptance of individual courses for CPE credit. As of January 1, 2002, sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit. One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity. You may want to verify that the state board from which your participants will be receiving credit accept one-half credits.

PGS Energy Training is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. CPAs interested in attending any seminars should contact our offices for details on CPE credits granted and any prerequisite requirements.
PGS Energy Training is registered with GARP as an Approved Provider of Continuing Professional Development (CPD) credits. If you are a Certified FRM or ERP, please record this activity in your Credit Tracker at http://www.garp.org/cpd. Please inform PGS Energy Training that you are a GARP CPE participant upon seminar registration.

The Global Association of Risk Professionals (GARP) is a not-for-profit membership association dedicated to preparing professionals and organizations for making better-informed risk decisions. GARP's membership represents more than 150,000 risk management practitioners and researchers at academic institutions, banks, corporations, government agencies, and investment management firms in 195 countries and territories. GARP administers the Financial Risk Manager (FRM) and Energy Risk Professional (ERP) Exams – certifications recognized by risk professionals worldwide. Visit www.garp.org/cpd.
Who Should Attend

This Seminar will benefit a wide variety of organizations and professionals in both physical and financial energy markets. Energy producers, utilities, energy marketers, commercial and industrial energy users, merchant generators, clearing brokers, and hedge funds, will gain valuable insights. This seminar will also be highly beneficial for energy executives, traders, originators, risk and credit managers, auditors, contracts managers, government regulators, attorneys, and asset operators. Anyone who wants a solid understanding of what can be done now to minimize the legal and financial exposure under the Act while, at same time, ensuring their companies' compliance, will benefit.

Prerequisites and Advance Preparation

There are no prerequisites for this seminar.

Why Choose PGS?

PGS seminars are known for their clear explanations and in-depth content. Register for a PGS class today, and join the over 10,000 energy professionals who have already attended one of PGS's proven programs.

Program Level & Delivery Method
Basic level. This fundamental course begins with basic material and then proceeds to the intermediate level. Delivery method is "Group-Live.”