ACT UK Annual Conference May 18–20, 2016 Liverpool, UK: Chatham will be speaking and exhibiting at the upcoming ACT Annual Conference. On Friday, 20 May 2016 at 9:20 am, Chatham’s Victoria Bell and Kern Roberts will be presenting on “What keeps the Treasurer up at night? Balancing risk management in the current environment.” We will be in the exhibit hall at Booth 39. We hope to see you there! Learn more here: ACT Annual Conference 2016 On Twitter? Use #actac16 to get more information.

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Regulatory Compliance Derivatives regulatory reforms, under Dodd-Frank for the U.S. and EMIR for Europe, have transformed the landscape of the OTC derivatives market. Chatham Financial has brought its 20-plus years of experience advising end users in the over-the-counter derivatives market to the global policy debate on financial regulatory reform. Experienced leadership: Our consultants have testified before the U.S. Congress and conducted educational briefings for Members of Congress and their staff. We’ve met with and written over 500 pages of comment letters to regulators in both the US and the EU, and been featured on panels of public roundtables hosted by the CFTC and SEC. We are also frequently quoted by news organizations in articles and opinion pieces which have appeared in numerous major publications. No other advisor to end users offers this powerful combination of market know-how and deep understanding…

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We have endeavored in this Ghostly little post, to raise the Ghost of an Idea, which we hope shall not put our readers out of humour with themselves, with each other, with the season, or with us. Enduser Scrooge sat busy in his counting-house. It was cold, bleak, biting weather, but Enduser Scrooge would not put more coals upon the fire, for the price of coal had abruptly risen and he had not hedged his exposure with Newcastle Index swaps. “Bah! Humbug!” he muttered as he poured over the details of his risk management portfolio. At length the hour of shutting up the counting-house arrived, and with an ill will he dismounted from his stool and locked up the office with a growl. After taking his usual melancholy dinner in his usual melancholy tavern, Enduser Scrooge beguiled the rest of…

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The Foreign Account Tax Compliance Act (FATCA) The Foreign Account Tax Compliance Act (FATCA) goes into effect January 1, 2013, and may have an adverse tax impact on certain payments made in derivative transactions.

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Guide to Eligible Contract Participant Definition After October 12, 2012, only Eligible Contract Participants (“ECPs”) are permitted by law to enter into OTC derivatives transactions. Non-ECPs will no longer be able to use the line of business exemption. Eligible Contract Participants generally include: Entities with $10 million in total assets Entities with a guarantor that is an entity with $10 million in assets Entities with a net worth of at least $1 million and are hedging Individuals with “amounts invested on a discretionary basis” that exceed $10 million, or $5 million if hedging If an entity by itself does not qualify as an ECP, it may nonetheless qualify IF all of the following conditions are met: it must be entering into a swap (i.e., an interest rate, FX or commodity derivative and not a credit or equity derivative); it must…

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On April 18 the Commodity Futures Trading Commission (“CFTC”) and the Securities and Exchange Commission (“SEC”) approved a final rule defining the terms “swap dealers,” “major swap participants,” and “eligible contract participants.” Many market participants were pleased that the regulators appeared to have listened to their concerns and defined the terms “swap dealers” and “major swap participants” in such a way that will not capture the vast majority of derivatives end users. The final rule provided less comfort to small end users, however, who may find that they will no longer be able to enter into over-the-counter derivative transactions because they do not qualify as “eligible contract participants.” – Major Swap Participants (“MSPs”): The final rule appears to be consistent with Congressional intent to focus the MSP definition on entities whose derivatives use is so material that the failure of…

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