U.S. COMMODITY FUTURES TRADING COMMISSION SEEKS ENFORCEMENT OF SUBPOENA SERVED ON MCGRAW-HILL
CFTC Moves to Compel Production of Natural Gas Trade Data
WASHINGTON, D.C. -- The United States Commodity Futures Trading Commission (CFTC) today filed an application in the United States District Court for the District of Columbia, seeking to enforce a subpoena for energy- related documents it served on McGraw-Hill in April 2005. As alleged in the application papers, the CFTC subpoenaed McGraw-Hill for documents to be produced by April 28, 2005, but McGraw-Hill refused to produce certain categories of responsive documents. The subpoena was issued as part of the CFTC’s ongoing energy investigations.
According to the application, the CFTC’s analysis of one energy company’s natural gas trading records, together with the testimony of that company’s own traders, supplied evidence that certain traders at the energy company submitted inaccurate natural gas trade data to Platts, an entity owned by McGraw-Hill. The application states that the company did not retain the trade data it provided to Platts, so the CFTC subpoenaed McGraw-Hill to obtain that data. The CFTC subpoena also sought McGraw-Hill’s documents concerning Platts’ use of that data in the indices that Platts calculates and disseminates.
Platts’ website, www.platts.com, bills the entity as “the world’s largest and most authoritative source of energy industry information and services.”
The CFTC previously sought enforcement of a subpoena directed to McGraw-Hill for similar documents relating to other energy companies. As in this action, McGraw-Hill claimed that the information sought by the CFTC is privileged. The federal district court in the Southern District of Texas before which the motion was heard two years ago has yet to issue a ruling.
The CFTC staff members responsible for this motion are as follows: Laura Gardy, Anthony Mansfield, and Gretchen Lowe.
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