Impact of Margin Rules for OTC Derivatives on Fund Risk Management

April 20, 2016 | 1PM ET | 1 hour | Online | by Chatham Financial | Recording Available


The upcoming margin rules for over the counter (OTC) derivatives, which are arguably the most significant of the derivative risk mitigation rules to be implemented since the financial crisis, require certain entities to exchange collateral in respect of their uncleared OTC derivatives. Under these new rules, private equity, real estate, infrastructure and microfinance funds may face substantial new requirements. These may include having to:
– Set aside capital to fully collateralize their transactions
– Manage the daily operational processes of posting and collecting collateral
– Implement appropriate policies and procedures to comply with the new requirements
– Amend trading and regulatory documentation
Firms that use derivatives for hedging purposes will have to consider whether and if so how, these obligations affect their hedging strategies.In partnership with ANREV, Chatham will host this webinar with a goal to educate and provide practical insight around the impact and critical considerations for funds operating in the APAC region whose hedging strategies are affected by these new requirements.

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In this webinar, Chatham will cover the following learning objectives:
– Understand how the margin rules for OTC derivatives impact funds’ interest rate, foreign currency and commodity risk management
– Explore the common misperceptions of the impact of margin requirements
– Consider different scenarios of how the margin rules may impact fund risk management decision making


Matt Hoffman is Chatham’s Global Head of Regulatory and Compliance Solutions for financial sponsors, primarily advising private equity, real estate, infrastructure, and microfinance fund sponsors and portfolio companies with regard to compliance with applicable global derivatives regulation, including the Dodd-Frank Act, EMIR, AIFMD, and MiFID/MiFIR, and negotiating ISDA Agreements. Matt has specialized in derivatives regulation since its inception and previously led Chatham’s global corporate team’s regulatory compliance efforts. Prior to that, he was an associate attorney with Duane Morris LLP, specializing in business reorganization and financial restructuring. Matt is a cum laude graduate of Brandeis University, where he earned a BA in Economics, and holds a JD from Columbia Law School, where he received the Outstanding Student Award from the Clinical Legal Education Association.


Joseph KusJoseph Kus is the director of Chatham’s Global Regulatory and Compliance Solutions team in Europe, where he advises European and Asian private equity, real estate, infrastructure, microfinance and corporate clients on compliance with global derivatives regulations. Joseph has over fifteen years’ experience of advising on derivatives and fund regulation. His expertise includes working on the implementation of new regulations such as Dodd Frank, EMIR, AIFMD and UCITS, establishment of fund complexes and negotiating counterparty and trading documentation. Following the collapse of Lehman Bros in 2008, Joseph was extensively involved in the resolution of trades and negotiation of settlements with the administrators of LBIE in Europe. Prior to Chatham, Joseph worked as a Senior Legal Counsel with Deutsche Bank, first with the Global Funds and Derivatives Team and then with the Passive Funds team in London. Before Deutsche Bank, Joseph spent six years at Russell Investments where he worked as a Senior Legal Counsel on funds and derivatives. Joseph graduated from Cambridge University with a law degree.