FERC approves market manipulation settlement with Deutsche Bank


The Federal Energy Regulatory Commission has approved a settlement between its Office of Enforcement and Deutsche Bank Energy Trading LLC to resolve an Order to Show Cause proceeding regarding manipulation of California power markets. Deutsche Bank stipulates to the facts and neither admits nor denies the violations. It agrees to pay a civil penalty of $1.5 million and disgorge unjust profits of $172,645, plus interest, resulting from its trading in California Independent System Operator markets at the Silver Peak intertie. In a September 2012 order, the Commission directed Deutsche Bank to show cause why its conduct did not merit a proposed $1.5M penalty. Based on its investigation, Enforcement staff determined that between January 29, 2010, and March 24, 2010, Deutsche Bank violated the Commission’s anti-manipulation rule by engaging in a scheme in which Deutsche Bank entered into physical transactions to benefit its financial position, its Congestion Revenue Rights position at the Silver Peak intertie. Within 10 days, Deutsche Bank must pay the civil penalty to the U.S. Treasury and disgorge the unjust profits to California ISO for distribution to market participants harmed by the company’s manipulation.

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