The regulatory environment significantly impacts natural gas hedging practices. This article covers the relevant regulations, compliance requirements, and their effects on hedging strategies. Companies must navigate a complex regulatory landscape, including rules from agencies such as the Commodity Futures Trading Commission (CFTC) and the Federal Energy Regulatory Commission (FERC). Compliance is crucial to avoid penalties and ensure the effectiveness of hedging strategies. The article provides an overview of the regulatory framework and offers guidance on how companies can stay compliant while optimizing their hedging activities.