Emerald People's Utility District Power Risk Management Procedures Guide

Transcription

1 Emerald People's Utility District Power Risk Management Procedures Guide Proposed by the Financial Risk Management Team (FRMT) Updated March 13,

2 Financial Risk Management and Trading Guidelines Emerald People's Utility District I. Mission and Goal EPUD s goal is to serve the electric loads of its customer-owners in a reliable and economically efficient manner, acting to optimize the value of our supply assets in order to minimize rates consistent with the fiscal health of the District. EPUD seeks to set a competitive rate structure in keeping with the goals of a financially sound organization and reflecting the principles of public power. II. Risk Philosophy EPUD is purchasing the Slice product because EPUD wants to assume control of managing the risks of procuring a wholesale power supply to meet the electrical requirements of its consumer owners rather than rely on BPA to perform this function on its behalf. These risks include but are not limited to uncertainty of electricity supply (variable hydro and wind are examples), demand (variable load), market price risk, and credit risk. It is necessary for EPUD to accept reasonable exposure to these risks in order to optimize the benefits of its power supply portfolio while providing reliable and economical electricity to our customers and owners. Having achieved that goal, the District is not motivated to engage in speculative commodity market activities that might provide additional gain. Additionally, EPUD and Contractor recognize the significant financial and operational threat of being physically short electricity supply. Risk Tolerance is a measure of the degree of uncertainty that an entity is willing to accept with respect to negative changes to its business or assets. An entity s risk tolerance is the acceptable level of variation, relative to the achievement of objectives. In setting specific risk tolerances, management considers the relative importance of related objectives and aligns risk tolerances with its risk appetite. EPUD and its Contractor recognize the inherent supply risk of the Slice product, particularly in forecasting hydro generation levels in the early months of a given water year. Varying probability of occurrence levels of historic stream flows can dramatically impact EPUD s cash flows. A balance must be struck between the risk of being short in critical and near-critical water years, with the risk of being long and losing favorable forward sale opportunities in the preponderance of years. III. Goals of EPUD s Financial Risk Management Team (FRMT) A. Manage the price and volume risk of its portfolio consistent with the risk tolerance of the EPUD Board of Directors ( the Board ); B. Manage the credit risk of its receivables and movements in the forward market price (mark-to-market) for power; 2

3 C. Provide the requisite information to EPUD s FRMT given the responsibility for oversight of power management and the risks inherent in it; D. Allow the FRMT to proactively represent to the Board that appropriate diligence is being exercised regarding oversight of power supply activities. E. Strengthen EPUD s ability to provide low-cost, reliable electricity to its retail customers while appropriately managing risk. IV. Roles and Responsibilities of EPUD A. Board of Directors the Board of Directors of EPUD reserve to themselves the approval of Policy for the District. By their approval of the Power Risk Management Policy they also undertake the following responsibilities: 1. Understand the nature of the risks encountered in managing EPUD s portfolio, including defining the District s Risk Tolerance and approving Risk Limits.; 2. Approve amendments to these policies and risk limits; Be updated periodically as to policy effectiveness; 3. Receive periodic updates as to the risk management performance of the District. 4. Delegate the oversight of the risk management program to the EPUD Financial Risk Management Team (FRMT); and 5. Approve forward transactions with a term equal to or longer than 12 months or extending more than 36 months into the future from the time the transaction is executed. The specific transaction authorities granted to the General Manager, or his designee, by the Board of Directors is provided in Appendix A. The specific types of transactions that the District may enter into are provided in Appendix B. B. Financial Risk Management Team (FRMT) The Financial Risk Management Team has primary operational risk oversight for EPUD. The FRMT shall be appointed by the General Manager and the team will consist of key personnel. Contractor s Client Services Manager and trading and or analytics staff will attend as non-voting members. The Board shall delegate to the FRMT ongoing maintenance and enforcement of EPUD s approved policies and procedures for trading and risk management. The FRMT will meet at least monthly and will prepare and approve meeting minutes. The responsibilities of the FRMT shall be: 1. Monitor the market price and counterparty risk of EPUD s individual portfolio to ensure that such risks are within tolerable limits and being managed in a manner consistent with these documented policies and procedures; 2. Understand the methods and procedures that will be employed to manage that risk; ensure that compliance with all policies and limits is maintained; 3

4 3. Receive daily reports of performance against agreed upon benchmarks; 4. Approve changes to Contractor Trading Procedures in Appendix C and reports in Appendix D and Appendix E Swap Transaction Representative Selection and Monitoring as recommended by Contractor, and recommend Power Risk Management Policy changes to the Board; 5. Approve any new counterparties and their credit limits, as recommended by Contractor; 6. Review and analyze new products as they become available; 7. Authorize and from time to time modify hedging methodologies and recommend changes; 8. Recommend amendments to these policies and risk limits to the Board; 9. Annually, as part of the annual Financial Audit, direct the Auditor to review trading and risk management practices of the District, against the policies and procedures contained herein; review and communicate the results of that review; 10. From time to time, and no less than once a year, review the District s Policies and Procedures for suitability; 11. Following the reviews in 8, 9 and 10 above, represent to the Board the sufficiency of Contractor s trading and risk management infrastructure and its overall compliance with the District s policy and procedures. 12. Recommend resource acquisitions and dispositions, including those that require Board approval. 13. Oversee the negotiation of the requisite contracts including directing Contractor to negotiate stand-alone contracts on EPUD s behalf; 14. Assume responsibility for the results of the credit related activities undertaken on EPUD s behalf; 15. Monitor risk reports on a regular basis. 16. Transaction approval when beyond Contractor s limits; 17. Review of trade tickets, beyond prescheduled, received from Contractor; 18. Receive and execute deal confirmations. Contractor shall direct counterparties to send deal confirmations directly to the FRMT rather than to Contractor for subsequent transmittal to EPUD; 19. Represent EPUD on the Contractor Joint Scheduling and Operating Committee. A copy of Contractor s transaction authorities and responsibilities is included in Appendix A. C. GENERAL MANAGER (GM) The GM manages the relationship between FRMT and the Board. D. Contractor Staff The roles and responsibilities of Contractor staff in EPUD s trading and risk management operations are provided in Exhibit B & C of the Resource Management Agreement (RMA) between EPUD and Contractor. The procedures Contractor will use for trading and risk management are described in Appendix C of this policy. Contractor will recommend changes 4

5 to Appendix C to the FRMT and the FRMT will have authority to make the changes. VI. Risk Management and Credit Procedures A. Risk Management 1. Contractor will maintain a Stochastic Model (Model) to measure EPUD s risk exposure. The stochastic functionality will be run at least monthly and include at least 1000 iterations (games). The FRMT will approve the Natural Gas modeling methodology and the Production Cost model. The Model will include a Financial Module which computes the EPUD s Net Operating Margin and Gross Power Margin (Financial Metric or FM) marked to market prices (Mark to Market (MTM)) daily and a Net Position Module which is updated daily with changes in loads, transactions, and resource output projections 2. Contractor will inform the FRMT at least monthly of a range of probability values of FM from the Model. 3. The FRMT will develop trading exposure limits that will provide a high probability of electricity supply for EPUD s retail customers. This will be measured at least monthly using the Model. Current trading exposure limits are defined as follows: A forecast of EPUD s projected Net Position will be maintained and reviewed on a regular basis by the FRMT. Net Position is defined as EPUD s total power supply during a given time period less EPUD s total power obligation during the same time period. EPUD s expected case (average) Net Position will be subject to the following upper and lower limits: Months Forward Lower Limit Upper Limit % of expected load +40% of expected load % of expected load +50% of expected load % of expected load +60% of expected load Limits will be set at a monthly level, based on each month s allhours load forecast. Board approval is required for any transaction with a duration of one year or longer and any transaction that extends beyond three years into the future from the date of execution. 5

6 4. The FRMT will develop financial risk limits and metrics that capture the appropriate risk tolerance of EPUD and its Board. 5. All physical forward transactions will be consistent with BPA s 5(b)9(c) policy. All financial derivatives will be used solely for purposes of hedging physical positions unless based on a hedging strategy approved by the FRMT. B. Credit Procedures 1. Commodity transactions, both physical and financial, will be entered into only with approved, creditworthy counterparties (CP). 2. Recognizing all the EPUD power transactions in day ahead and real time are traded as principal with Contractor, EPUD has agreed per the FRMT to utilize Contractor s credit limit and enabling contracts for these transactions. The CP credit limits discussed below shall not apply to these transactions. For EPUD s reference, Contractor will provide a report to the FRMT showing the credit exposure to all counterparties from trading as principal. The FRMT will monitor these reports and will communicate any counterparty exposure concerns to Contractor. 3. EPUD will utilize Contractor s system for establishing the credit limits for counterparties for all transactions, physical and financial, not traded as principal. EPUD s credit limits will be scaled from Contractor s limits as follows: Contractor limit greater than $15 million: $2.25 million Contractor limit $9 million - $15 million: $2 million Contractor limit less than $9 million: o Contractor limit * ($2 million / $9 million) 4. EPUD will not take action that would incur a credit exposure with any counterparty greater than $ 2 million without Board approval. However, market price changes may cause excursions in credit limits beyond $ 2 million. 6

7 5. Term transaction of one year or greater be excluded from the above noted agency credit limits. 6. Contractor will continuously scan national information on creditworthiness of counterparties and will immediately change EPUD s credit limits on a pro-rata basis based on changes made by Contractor. 7. The FRMT shall provide oversight regarding credit matters in lieu of the Board. As required, a review of credit and credit documentation status will be included at each monthly FRMT meeting. The FRMT will report any significant credit worthy events to the Board. 8. When the sum of counterparty s net mark-to-market, unbilled trading activity and payables/receivables balance reaches 85% of its Counterparty Credit Limit it will be placed on Credit Watch. At that point, the FRMT will designate action which shall be taken if the counterparty reaches its Credit Limit. 9. The status of credit risk will be tracked by counterparty and the information made available in a timely manner to the FRMT; credit reporting will be accessible on a daily basis via the Contractor s web portal; 10. EPUD shall not intentionally exceed the Counterparty Credit Limit with any counterparty without the approval of the FRMT; the FRMT may grant Contractor the authority to make short-term exceptions as necessary to accommodate operational requirements. 11. EPUD or Contractor when acting as agent for EPUD may not provide credit intermediation ( sleeving ) services for wholesale commodity market participants. It is recognized that other counterparties may be willing to sleeve EPUD power and Contractor is authorized to perform these trades for the purposes of managing credit exposure. 12. In the event that emergency real-time purchases are necessary to meet native load, Contractor may then purchase from any counterparty whether or not the counterparty has been approved for trading. 13. Contractor personnel involved in day-ahead or same-day trading activities (Contractor principal transactions) may exceed a counterparty s credit limit if trading with the counterparty is required to balance load and resources and failure to execute the trade would result in a punitive energy imbalance, or other control area operator or transmission charge. The proposed purchase or sale price of power will not be a consideration 7

8 in choosing to execute a transaction in violation of a credit limit. Credit limits also may be exceeded when failure to sell the energy would result in EPUD permanently losing the energy (i.e., sell it or spill it). If a Contractor Trader executes a trade under one of these circumstances, the Trader involved will write an outlining the reason for the credit exception and providing an estimate of the dollar amount of the credit exceedance. That must be forwarded to the appropriate Contractor Trading Director, Contractor s Client Service Manager for EPUD, Contractor s Credit Manager, and EPUD s FRMT before the close of business or the end of the scheduler s shift. 14. EPUD understands that transacting Over The Counter (OTC) swaps carries an additional Commodity Futures Trading Commission (CFTC) reporting function. Part 39 of the Commission s regulations require that EPUD file an annual report on how EPUD generally meets its financial obligations associated with entering into non-cleared swaps. This reporting requirement is satisfied by identifying one or more of the following categories: (1) A well written credit agreement (2) Pledged or segregated assets (including posting or receiving margin pursuant to a credit support agreement or otherwise) (3) A written third-party guarantee (4) The electing counterparty s available financial resources (5) Means other than those described above. Contractor s credit department will file the annual report on EPUD s behalf. EPUD will be responsible for ensuring the information is filed in a timely manner. C. New Product Approval Procedure As markets evolve, EPUD may consider using new products offered by an approved counterparty to hedge volume, price, and/or credit risk. Prior to approving and executing a new product, the FRMT is responsible for ensuring that each new product meets the following criteria which will be documented in the FRMT minutes 1. All risks and rewards that may result from the new product are identified and understood by the FRMT and Contractor. This assessment will include both quantitative and qualitative analysis of the risks and benefits associated with the new product; 2. The product can be priced through market discoveries and/or financial models maintained by the District or Contractor. The methodology relied upon for pricing the product shall be explained to the District s FRMT; 3. A system is in place for capturing the transaction, and for providing ongoing valuation and risk monitoring of the product; 4. Accounting policies associated with the product have been identified and can be implemented by the District; 5. Contract terms are unambiguous and have been reviewed and approved by the District s legal counsel, if applicable; 8

9 6. Support staff (District and Contractor) involved in transaction processing (confirmations, scheduling, settlements, and accounting) have received adequate training and can demonstrate an understanding of the product. 9

10 Appendix A Transaction Approval Authorities Granted to General Manager Long standing utility practice and the general course of business for energy transactions in the western United States marketplace require immediate action by the District s FRMT and/or its agent (Contractor) in order to capture short-term market sale and purchase opportunities. There is insufficient time for adoption of a separate Board resolution for each transaction. Failure to adopt a mechanism for District staff to take immediate action creates the potential for the District to be economically disadvantaged. To enable the District to consummate transactions within the time constraints required by the energy marketplace, the following transaction approval authorities are granted to the General Manager: o The District s General Manager or designee is authorized to enter into short term power, physical or financial, Environmental Attributes, and transmission sales and purchase contracts, without further action or approval by the Board of Directors provided that no transaction shall be for a duration in excess of one year, and the term of the agreement does not extend beyond three years into the future at the time the agreement is executed. o The General Manager is further authorized to execute on behalf of the District enabling agreements setting general terms and conditions for short term power, physical or financial, Environmental Attributes, and transmission sales and purchases provided that they comply with the guidelines and procedures contained herein. The Board recognizes the Contractor Resource Management Agreement (RMA) allows for the General Manager to delegate the following authorities and requirements: Short-term transactions are typically done on an hour ahead or preschedule basis. Exhibit B to the Contractor s RMA, dated May 1, 2010, delegates authority to the Contractor, to buy and sell from/to District trading as principal as follows: o Unless otherwise directed by the District, real-time marketing will be limited to responding to curtailments and/or loss of resources. In addition, after September 30, 2011, the Contractor is authorized to perform real-time marketing activities to optimize the District s resources. o The Contractor is authorized to establish preschedules for the wholesale power needs of the District. Such preschedules are normally for a period of 24 to 72 hours but may be for a period of up to 120 hours (Thanksgiving schedule: Thursday through Monday). 10

11 o The Contractor is authorized to commit the District to daily sales and purchases of electricity for a term of up to 120 hours. o The Contractor is authorized to execute on behalf of the District daily sales and purchases of transmission for a term of up to 120 hours (such transmission transactions shall be executed by the Contractor as agent for the District). o The Contractor will provide electronically to the District information on all transactions entered into the day following the day they are made. The following policies and procedures will govern the execution of transactions: o All arrangements made by the Contractor for longer than 120 hours must be approved in advance by the General Manager or authorized designee. o Physical power will be entered into as agent for the District if longer than one year in duration and will be entered into as principal if one year or less in duration. o Financial transactions and transmission sales or purchases will be entered into as agent. Strategies for long-term transactions will require approval of the District s FRMT and the Board. Documentation of each long-term transaction authorized by the District shall be via or fax. The /fax by the District authorizing the Contractor to transact shall be printed and held until the confirmation and the Contractor trade ticket are completed. The printed authorizing /fax will be filed along with the confirmation and trade ticket.. 11

12 Appendix B Transactions Authorized by this Wholesale Energy Risk Management Policy Physical Commodity or Financial * Electricity Physical Same day purchases and sales BPA Main Grid; other points subject to procurement of transmission from source to sink Approved Products Delivery Location Duration Next hour to balance of day Electricity Physical Next day purchases and sales BPA Main Grid; other points subject to procurement of transmission from source to sink Preschedule period Electricity Physical Financial Forward purchases and sales Fixed for Floating swaps BPA Main Grid; other points subject to procurement of transmission from source to sink Mid C Up to 36 months into future provided the term of any transaction does not exceed 12 months Electricity Physical Energy exchanges BPA Main Grid; other points subject to procurement of transmission from source to sink Up to 36 months into future provided the term of any transaction does not exceed 12 months Electricity Physical Purchase or sale of capacity or load factoring products BPA Main Grid; other points subject to procurement of transmission from source to sink Up to 36 months into future provided the term of any transaction does not exceed 12 months Electricity Physical Financial Financial Purchase of yearly, quarterly, monthly or daily call and put options Purchase of daily call and put options BPA Main Grid MidC MidC Up to 36 months into future provided the term of any transaction does not exceed 12 months Financial Purchase of quarterly and monthly Asian call and put options MidC Purchase of quarterly and monthly MidC (Power) 12

13 Commodity Physical or Financial * Financial Approved Products Delivery Location Duration call and put swaptions Purchase of dual-trigger call options Portland or The Dalles (Temperature) Transmission Physical Short-term transmission capacity Any point from which the District has sourced power to a point where the District will sink power. Up to 36 months into future provided the term of any transaction does not exceed 12 months Environmental Attributes Financial Sale of environmental attributes ( green tags ) that accrue to the District as a result of a renewable resource purchase and that are surplus to the District s statutory and/or regulatory requirements Not applicable Any historical and up to 36 months into future provided the term of any transaction does not exceed 12 months * All physical transactions must be executed under an approved master agreement (e.g., WSPP, EEI). All financial transactions must be executed under an ISDA unless otherwise approved by EPUD s FRMT. 13

14 Appendix C Contractor Trading Procedures A. Transactions 1. Transactions will be recorded via recorded telephone lines, recorded instant messages or at recognized and secure Internet trading sites. 2. The individual making the transaction will fill out a standard trade ticket/database entry containing, at minimum, the following information: a. Date of transaction; b. Counterparty; c. Transaction capacity (MW/hour or MMBtu/day); d. Buy or sell; e. Transaction price; f. Delivery point; g. For options, option type, strike and execution instructions; h. For financial swaps, the reference index; i. Starting delivery date and hour; j. Ending delivery date and hour; k. Product type; l. Any other date, hour and/or capacity data needed to define a shaped product; m. Broker or electronic trading site and fee, if applicable; n. If the trade is a swap; i. Reporting Counterparty; ii. Exemptions if any to clearing. 3. A copy of the trade ticket will be passed to the Contractor s Risk Control Group and a copy retained by the Contractor trader executing the transaction. 4. In the event that the master trade agreement directs the counterparty to initiate the trade confirmation, the counterparty will be directed to fax the confirmation directly to EPUD s FRMT or the Contractor s Risk Control Group. 5. A Contractor Trader will initiate the confirmation process by entering the trade in the appropriate database no later than the close of business on the day of the trade. B. Confirmation and Database Entry of Forward Transactions Contractor s Risk Control Group will initiate the confirmation process, when applicable.

15 1. For transactions longer than the normal preschedule period, the Contractor s Risk Control Group will fax or transmit electronically, a copy of the trade ticket to EPUD s FRMT. If EPUD is responsible for generating a confirmation letter, the Contractor s Risk Control Group also will send a copy of the confirmation letter to EPUD s FRMT for execution and distribution. 2. EPUD s FRMT will sign and forward the confirmation letter to the counterparty when EPUD is the counterparty responsible for initiating the confirmation under the terms of the master agreement governing the transaction. The EPUD s FRMT will receive, compare to the trade ticket, sign and return the confirmation to the counterparty, and a copy to the Contractor s Risk Control Department, when the counterparty is responsible for initiating the confirmation under the terms of the master agreement governing the transaction. 3. Should there be a disagreement between the counterparty and the Contractor trade ticket as to any of the terms of the transaction; it will be the responsibility of the Contractor s Risk Control Group to work with the Contractor trader and the counterparty s representative to resolve all differences on that same business day. 4. All confirmation and reconciliation of a forward trade will be accomplished by the end of the second full work day after the trade date, or first delivery, whichever is earlier. 5. All trades executed during the day will be entered into the appropriate database by the end of the business day. When confirmation of the trade is received, the Contractor s Risk Control will reconcile the confirmation with the transaction in the database. 6. Confirmations will only be required for trades whose delivery term extends beyond the preschedule period. C. Book Structure EPUD will use a book structure in managing and reporting its risk position. A description of the book structure is provided below. Resources, transactions and positions will be segmented into two distinct risk books: 1. Physical Power - The Physical Power book will consist of any purchased power resource or transaction that is not (i) dependent on natural gas (or alternate fuels)

16 for purposes of pricing delivered power or (ii) backed by a product or resource that is dependent on natural gas (or alternate fuels) for purposes of pricing delivered power. Such resources include BPA Slice and Block, and any applicable market purchase or sale contracts. 2. Financial Power - The Financial Power book will consist of the purchase or sale of options, forwards, futures, basis, basis swaps, and other power derivative products. D. Database Administration Contractor uses an industry approved Energy Trading and Risk Management ( ETRM ) system to record all transactions securely. This system is integrated with The Optimizer scheduling application system (an internally developed and vetted software) for scheduling and transaction accounting. EPUD and Contractor recognize that as these systems evolve, modifications to processes will be made. A Database Administrator (DBA) has been designated to these systems and that person is charged with database security and maintenance for the transaction databases. The following safeguards for data security and backup will be installed: 1. Transaction data stored in the system of record will be replicated daily to ensure data redundancy; 2. The ETRM and The Optimizer databases, as well as the daily schedules, will be backed up at least daily after the close of business. E. Checkout Contractor s Bilateral Settlement Department will checkout all transactions, both volume and dollar amounts, at the end of the month consistent with normal industry practice. Contractor Bilateral Settlement Department will strive to checkout all transactions within 5 business days of the end of the month. Contractor Bilateral Settlement Department also will perform mid-month checkouts as appropriate.

17 Appendix D Reporting The following reports will be produced on the indicated schedule for the guidance of the FRMT and Contractor staff involved in trading and risk management: 1. The Net Position Module, showing the District s surplus (deficit) in average megawatts across the balance of the month and 71 forward months, will be provided daily; 2. The Financial Module showing the FM marked-to-market report will be provided daily; 3. A credit report showing the sum of receivables (payables) and mark-tomarket benefit (cost) by counterparty, will be provided daily; 4. A forward price curve report, currently for Mid-C electricity and Sumas natural gas, will be calculated and provided daily; 5. An expected slice generation report for the balance of the current year will be updated as needed; 6. A slice system storage report will be provided daily; 7. A daily report showing purchase and sale activity from trading as principal for the current month and prompt month; 8. A daily report showing all counterparties with 85% of credit limit including exposure from trading as principal when the District has a contract and approved credit limit for that counterparty.

18 Appendix E Swap Transaction Representative Selection and Monitoring In compliance with the Dodd-Frank Financial Reform Act, EPUD will select a qualified representative ( Representative ) to provide advice and guidance when entering into swap transactions with Swap Dealers or Major Swap Participants. EPUD, a Special Entity under the Dodd-Frank Financial Reform Act, shall endeavor to seek and employ an individual or entity that will voluntarily act as a Representative for all energy commodity swap transactions between EPUD and any Swap Dealer or Major Swap Participant. The Representative must meet all qualifications identified in 17 C.F.R (b): (i) (ii) (iii) (iv) (v) (vi) (vii) Has sufficient knowledge to evaluate the transaction and risks; Is not subject to a statutory disqualification; Is independent of the swap dealer or major swap participant; Undertakes a duty to act in the best interests of the Special Entity it represents; Makes appropriate and timely disclosures to the Special Entity; Evaluates, consistent with any guidelines provided by the Special Entity, fair pricing and the appropriateness of the swap; and In the case of a Special Entity as defined in (c)(2) or (4), is subject to restrictions on certain political contributions imposed by the Commission, the Securities and Exchange Commission, or a self-regulatory organization subject to the jurisdiction of the Commission or the Securities and Exchange Commission; provided however, that this paragraph (b)(1)(vii) of this section shall not apply if the representative is an employee of the Special Entity. The Representative and EPUD shall enter into a legal agreement that binds the Representative to comply with items (i) through (vii) in this policy. At no longer than any 12 month interval, EPUD shall review the performance of the Representative to ensure compliance with items (i) through (vii) in this policy. For purposes of this Procedures Guide, the following definitions will apply: Special Entity: As defined in 7 U.S.C. 6s(h)(2)(C) and further interpreted in 17 C.F.R (c). EPUD is a Special Entity as defined by 17 C.F.R (c)(2). Swap Dealer: As defined in 7 U.S.C. 1a(49) and further interpreted in 17 C.F.R. 1.3(ggg) Major Swap Participant: As defined in 7 U.S.C. 1a(33) and further interpreted in 17 C.F.R. 1.3(hhh) Representative: As defined in this Procedures Guide and 17 C.F.R