EMIR Reporting By law and regulation, EMIR requires companies to report their derivatives transactions (both with dealers and affiliates) to regulators. It can be a struggle to find an operationally efficient solution that is legally compliant and relieves administrative burdens, particularly for companies that have a large number of derivatives transactions and limited internal resources or compliance infrastructure. Download This Bulletin

Read More...

IEX revolution will restore trust in Wall Street December 23, 2015, CNBC.com By Michael Bontrager and Luke Zubrod “Our firm has spent the last six years responding to Dodd-Frank’s derivatives market regulations and it is our firm conclusion that the core problem in finance cannot be regulated away. To be sure, new regulatory guiderails are an essential response to the crisis. But there are limits to the power of government action in fixing the system’s most fundamental problem – the erosion of trust.” Commentary by Mike Bontrager and Luke Zubrod. Bontrager is the founder & CEO of Chatham Financial, a global risk management advisory and technology firm in the debt and derivatives markets. Zubrod leads the firm’s public policy efforts. Chatham has no financial interest in IEX. Read Complete Article

Read More...

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…

Read More...

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…

Read More...

Ever notice how many more things come in clear packages at the grocery store? Gone are the days when juices, granola, and frozen pizzas languished in those opaque cardboard containers; now we can see right through most packages to the delicious goodness inside. Why reveal so much all of a sudden? As Sarah Nassauer recently wrote in the Wall Street Journal, it turns out that brand managers discovered in testing that transparent packaging promoted the perception of better taste and fresher ingredients among consumers. Tropicana used to dominate orange juice sales, but it lost share to Simply Orange once the challenger was first to market with a clear bottle – Tropicana has not recovered its fallen sales, but perhaps to prevent further attrition it has adopted the clear jug approach. How significant is see-through packaging to sales? Kind Healthy Snacks…

Read More...

Fans of superpower action movies often divide into clear ideological camps. Some swear by the shield-tossing Captain America, others by the acrobatic Catwoman, and still others by the techno-gadget-using Ironman. Those with superpowers tend to be solitary creatures, and while there is no shortage of team-based comic books to adapt into blockbuster films, many movies portray the superpower-wielding hero working alone. That’s no big surprise, of course – it has to be tough to explain violent fits of rage (not to mention turning green), secret web-spinning tendencies, or the ability to lift cars with only a pinky after never having joined a gym. Even when the mighty protagonists need a little assist, it’s very clear who runs the show and who is the sidekick. But now, thanks to aggressive director Zach Snyder, we are about to witness typical action film-making…

Read More...

Every time we run to the grocery store or pharmacy for household staples like baking soda or ibuprofen, we’re faced with a choice – to buy the name brand or the store brand. On the one hand, there’s something reassuring about purchasing a nationally-recognized brand; after all, if they can afford to advertise during the Super Bowl, surely they must have a quality product! On the other hand, why should we pay three times the amount for cough syrup when the store brand has the exact same list of ingredients? In truth, we often use brand recognition as a proxy for quality, whether or not that conclusion is valid. If we consumers had perfect information, we would only buy name brands if the cost premium were clearly justified by higher quality or value. This implies that subject-matter experts, such as…

Read More...

Derivatives Regulation Case Study: Clearing Selection Our Client: A regional bank that uses derivatives for asset-liability management and offers hedges to its customers in connection with variable-rate loans. Situation: The client, who will be required to centrally clear certain derivatives transactions, hired Chatham to evaluate and help in the selection of futures commission merchants (FCMs), with whom the client will need to establish a relationship in order to be able to access clearing houses for the central clearing of derivatives trades. Outcome: Chatham conducted an independent RFP (request-for-proposal) process for the client involving eight FCMs. The RFP assessed fee schedules, creditworthiness, initial margin estimates and complementary services available to customers. The client received a full analysis and evaluation of the FCM proposals customized to align with the client’s specific needs. The RFP evaluation was presented to the client’s senior management…

Read More...

Compliance without compromising hedging OTC derivatives continue to evolve in this era of financial regulatory reform. Dodd-Frank and EMIR regulation are now actively enforced. These new standards have increased complexity and rigor for real estate companies. They must manage derivative-related documentation, policies and resolutions, as well as risk management operations. While the changes in effect today present one set of challenges, continued adjustments in the rules further complicate the compliance process. This demands a watchful eye and sharp navigation skills. How Chatham’s regulatory compliance services provide optimized compliance Derivatives regulation understanding meets markets expertise: Chatham guides you through compliance with derivatives regulations with a powerful combination of proven regulatory expertise, practical derivatives experience, and technology solutions you can apply to your business. Our dedicated team of regulatory experts has been actively engaged in the global policy debate on derivatives regulatory…

Read More...

Through the Looking Glass With the holiday season officially in full swing, retailers are feeling the heat to push out their hottest releases before the year-end shopping frenzy cools off. As always, the most anticipated releases of the year come from the tech sector. Both Sony and Microsoft launched new all-in-one gaming and entertainment systems last month, Samsung released its newest iPhone competitor, and the 800 pound gorilla is offering a new iPad, and two new variations on the iPhone. Unfortunately, techies with the new smartphone-like wearable headset from Google, called the Google Glass, at the top of their holiday wish list will have to wait till next year to impress fellow denizens of their cubicle pod. Even though Google will not be bringing it’s much hyped Glass to market in 2013, all eyes are watching as it takes the…

Read More...