Smoothing the Road to Reconciliation August 25, 2015, DerivSource By Christina Norland Christina Norland – Director of Global Regulatory Solutions at Chatham Financial discusses the thornier issues of portfolio reconciliation and how both parties can share the burden. Download Complete Article

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VIDEO: Portfolio Reconciliation Requirements Heather Fritzinger of Chatham Financial discusses the advantages of reconciling a portfolio of derivatives transactions with bank counterparties on a periodic basis. In addition, she explains which parties are required to reconcile trade portfolios under Dodd-Frank and EMIR, and describes how this reconciliation must be properly documented according to protocols published by the International Swaps and Derivatives Association (ISDA). A full transcription of the video is available below. window._wq = window._wq || []; _wq.push({ id: 'jw6sj1p4vw', onReady: function(video) { video.bind('play', function() { Munchkin.munchkinFunction('visitWebPage', { url: '/video/jw6sj1p4vw', params: 'video=started' }) }); video.bind('end', function() { Munchkin.munchkinFunction('visitWebPage', { url: '/video/jw6sj1p4vw', params: 'video=finished' }) }); }}); Video Transcript: Heather Fritzinger: The frequency of portfolio reconciliation varies by jurisdiction, and depends on two factors; entity classification and the number of trades between the counter parties. Under Dodd-Frank, swap dealers must make…

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VIDEO: Internal Compliance Under Dodd-Frank and EMIR Matt Hoffman of Chatham Financial answers your questions such as “What regulatory compliance obligations might my banks not help me with?”, and others regarding Dodd-Frank, EMIR regulations, and, in particular, the ISDA Dodd-Frank Protocols. Thanks for watching! window._wq = window._wq || []; _wq.push({ id: 'p8fztezb8b', onReady: function(video) { video.bind('play', function() { Munchkin.munchkinFunction('visitWebPage', { url: '/video/p8fztezb8b', params: 'video=started' }) }); video.bind('end', function() { Munchkin.munchkinFunction('visitWebPage', { url: '/video/p8fztezb8b', params: 'video=finished' }) }); }}); Video Transcript: Matthew Hoffman: When Dodd-Frank and EMIR first came online, we found that the buy-side of the over the counter market was concerned with continued access to that market asking us questions like, “What do I have to do for my banks to continue to trade with me?” This question really amounts to what do my banks need me to do…

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VIDEO: Pre-trade Documentation Christina Norland of Chatham Financial discusses the documentation requirements under current Dodd-Frank regulation that must be met prior to trading. Thanks for watching! window._wq = window._wq || []; _wq.push({ id: '4jucgkcvxl', options: { "autoPlay":"false", "volume":1, }, onReady: function(video) { video.bind('play', function() { Munchkin.munchkinFunction('visitWebPage', { url: '/video/4jucgkcvxl', params: 'video=started' }) }); video.bind('end', function() { Munchkin.munchkinFunction('visitWebPage', { url: '/video/4jucgkcvxl', params: 'video=finished' }) }); }}); Video Transcript: Christina Norland: So, for all transactions that involve U.S. swap dealers or registered, non-U.S. swap dealers, many clients have to complete pre-trade documentation, that’s required by their banks. This is because the banks have specific requirements that they have to fulfill under Dodd-Frank to, ensure that they have complied with various business conduct standards as well as swap-trading relationship documentation standards. This often involves a little bit of pre-trade work that needs to…

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VIDEO: Recordkeeping Requirements Under Dodd-Frank Pam Brown of Chatham Financial discusses how the recordkeeping requirements implemented by the U.S. Commodity Futures Trading Commission (CFTC) as a result of the Dodd-Frank Act affect end-users in the OTC derivatives market. In addition, she explains how clients use ChathamDirect to maintain compliance with this regulatory requirement. window._wq = window._wq || []; _wq.push({ id: '14ftj61lp2', onReady: function(video) { video.bind('play', function() { Munchkin.munchkinFunction('visitWebPage', { url: '/video/14ftj61lp2', params: 'video=started' }) }); video.bind('end', function() { Munchkin.munchkinFunction('visitWebPage', { url: '/video/14ftj61lp2', params: 'video=finished' }) }); }}); Recordkeeping What is it? A requirement to report and keep records of relevant data for all swap transactions. All swap counterparties – including end users – must keep records of their derivatives transactions. As for reporting, the CFTC requires that one of the two counterparties to a swap must report the data to…

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In 1973, the Arab Oil Embargo and ensuing oil crisis in the US prompted Congress to react with new regulation. The Corporate Average Fuel Economy (CAFE) Standards introduced fuel efficiency benchmarks that were intended to “reduce energy consumption by increasing fuel economy.” Now more than 40 years later, the unpredictable outcomes of fuel economy regulations are instructive, especially as we embark on a similarly ambitious regulatory scheme for OTC derivatives. They teach that regulations are likely to have unexpected and undesirable effects, even while achieving their broad objectives. The current fleet-wide fuel efficiency standard in the U.S. of 27.5 miles per gallon will increase to 54.5 mpg by 2025. These ever-growing standards have forced automakers to rethink their entire line-ups, generally emphasizing economy over other factors like performance, safety, size and comfort. But performance is not something auto enthusiasts are…

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Two weeks ago on Sunday, September 7th, at about the same time that many of us were tuning in for the first professional football games of the season, planet Earth had a near miss. An asteroid 60 feet in diameter buzzed past New Zealand at a frighteningly close distance from of just 25,000 miles. In terms of astrophysics, that’s a hair’s breadth! Astronomers breathed a huge sigh of relief, fearful that a direct hit on Sunday could have had the same affect as an asteroid impact in Russia last year. On February 15, 2013 an asteroid roughly identical in size to last week’s asteroid collided with Earth in the Russian town of Chelyabinsk. When the space rock weighing more than the Eiffel Tower and hurtling at 40,000 mile per hour slammed into the atmosphere, it exploded into a fire ball…

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Four Years Later: Dodd-Frank and Derivatives August 01, 2014, Institutional Investor By Luke Zubrod Now that it’s been a few years since the promulgation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, practical experience with the law’s central features has allowed us to assess its shortcomings and present ideas for fine-tuning. Download Complete Article

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Guest view: U.S. swaps need clearer reform July 25, 2014, BreakingViews By Luke Zubrod Clearer changes are needed for U.S. derivatives markets than the Dodd-Frank Act’s prescription. Four years after the regulatory reboot became law, many of the reformers’ hopes have been realized. Download Complete Article

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NEW YORK, N.Y. – Peter Beyers and Stanley Sellers, two former Wall-Street derivative’s traders, are leading a group of financial professionals in a quest to create a derivatives trading system completely untethered from financial regulation. The idea is to establish human and technological infrastructure robust enough to support a legitimate presence in the derivatives market that operates apart from any regulatory scheme. “Navigating the do’s and don’ts of the new and existing regulation across the world is becoming increasingly difficult and burdensome for market participants,” said Mr. Beyers. “Imagine the efficiencies you could create by cutting away all the red tape.” But finding a way to stay out of reach of regulation while still maintaining a presence in derivatives markets creates a unique challenge. “The regulatory landscape in today’s world is changing,” Beyers explained. “All of the major markets exist…

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