Private Funds: Regulations Relevant to the Financial Entity Definition In order to determine whether and how these requirements apply to an end user, the end user must determine whether or not it is a “financial entity” under the Dodd-Frank Act. Private Funds: Regulations Relevant to the Financial Entity Definition

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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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