FERC Issues Order Denying Hunter Rehearing Request On Alleged Market Manipulation

On November 18, 2011, the Federal Energy Regulatory Commission (FERC) denied former Amaranth Advisors LLC trader Brian Hunter's (Hunter) rehearing request of FERC's Order Affirming Initial Decision and Ordering Payment of Civil Penalty issued on April 21, 2011.¹ In the Affirming Order, FERC found that the record supported the administrative law judge's (ALJ) determination that "Hunter's trading practices [in the natural gas futures market during the settlement periods] on expiration days were fraudulent or deceptive, undertaken with the requisite scienter, and carried out in connection with FERC-jurisdictional natural gas transactions" in violation of FERC's Anti-Manipulation Rule and directed Hunter to pay a $30 million civil penalty.² Hunter has sixty days to appeal FERC's decision to the U.S. Court of Appeals. A court decision regarding such an appeal would provide needed guidance to market participants regarding FERC's interpretation of its authority under the