manipulation

Without a clear definition of market manipulation, or a detailed description for prohibited conduct, market participants are often left with more questions than answers.

Some will stray from ethical behavior. But markets must be regulated to maintain confidence.

In the aftermath of 2000-2001 energy crisis, Congress provided federal regulators more authority to crack down on fraud. To do so, FERC must show that the actor possessed the requisite state of mind and establish a connection between the alleged manipulative action and an interstate transportation or sale for resale of natural gas or electricity.

Closer coordination between FERC and CFTC (and perhaps also with DOJ) will increase enforcement risk for energy industry traders.