FERC Approves $105 Million Settlement with Barclays for Market Manipulation
Associates Russell Kooistra and Thomas DeVita are published in the SA Financial Regulation Journal, the official financial regulation journal of the South African Institute of Financial Markets. Their byline, “FERC Approves $105 Million Settlement with Barclays for Market Manipulation,” highlights the settlement and FERC’s determination “that Barclays uneconomically traded day-ahead physical transactions to benefit its financial swap positions for the same locations… In its order approving the settlement, FERC stated that Barclays will pay a civil penalty of $70 million and disgorgement of $35 million, totaling $105 million in payments. FERC also stated that $15 million of the $35 million disgorgement, plus any amounts of the remaining disgorgement that are not used for remediation efforts, will be paid to low-income energy assistance programs in Arizona, California, Oregon, and Washington.” The settlement follows litigation between Barclays and FERC in federal court over FERC’s authority to enforce civil penalties against Barclays and its traders.