"Enforcement Outlook: What the Department of Justice’s Antitrust Suit against KeySpan Means for Swaps (U.S. v. KeySpan Corporation)"

In June 2010, the Antitrust Division of the United States Department of Justice (DOJ) brought a civil action against KeySpan Corporation alleging that a financial hedging arrangement that it entered into in 2006 unreasonably restrained trade and violated Section 1 of the Sherman Act.  This Stroock Special Bulletin examines DOJ's theory of the case and its settlement, which provide insight into an aggressive use of the antitrust laws in financial markets that, until now, have not often attracted this type of enforcement attention.