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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It’s funny how quickly the world changes and how what didn’t exist yesterday becomes the standard for how we get things done today. Take apps as an example: not that long ago the concept of using an “app” would not have made sense to most people, but when we need something today, our first thought is to say, “There must be an app for that”. Just look at the world of travel — last week we had a team return from a conference in Miami, and the day before our return flight, we loaded our flight information into TripTracker, an app that provides real-time flight status and sends push notifications of itinerary changes. Sure, we could have checked the airline’s website every time we wanted an update and signed up for text message alerts, but TripTracker removed a few steps,…

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End-User Exception Election For swaps subject to mandatory clearing, end users will be exempt if they qualify for the end user exception and provide justification. The end user exception must be elected on a per trade basis. If an end user is facing a swap dealer, the exempt end user would provide the information to its swap dealer counterparty, or its financial entity counterparty. The dealer or financial entity would report this information to a “swap data repository” along with the specific trade details. If two end users face each other, one of the end users would have to notify the CFTC, through reporting to the SDR, that the election to use the end-user exception to mandatory clearing. The CFTC’s final rule would require any end user that wishes to be exempt from clearing to report additional information on an…

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Evaluating SEFs as a Transparency Mechanism in the OTC Derivatives Market February 2, 2010 In addition to the market transparency that would be provided by central trade repositories, CFTC Chairman Gensler is proposing that the vast majority of OTC derivatives be required to trade on regulated “swap execution facilities” (“SEFs”). Examples of SEFs include electronic trading platforms such as FXall and Tradeweb. Download Complete Article

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