Final European OTC Derivatives Margin Rule Frequently Asked Questions On 4 October, 2016, the European Commission published its Final Draft Regulatory Technical Standards on margin for derivatives that are not centrally cleared (“OTC Margin Rule”). The OTC Margin Rule, which is arguably the most significant of the derivative risk mitigation rules introduced under EMIR, requires financial counterparties (“FCs”) and non-financial counterparties that exceed specific thresholds (“NFC+s” and together with FCs, “Impacted Entities”) to exchange collateral in respect of their uncleared over-the-counter derivative transactions. The OTC Margin Rule does not require banks to impose margin requirements on nonfinancial counterparties whose volume of non-hedging derivative transactions are below the clearing threshold (“NFC-s”). The requirements will be phased in beginning in early 2017 and ending 1 September, 2020, giving market participants some time to prepare for the changes.

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Foreign Currency Risk Management If not properly managed, currency risk presents exposure that can have severe financial consequences to an organization’s financial statements. It is not uncommon for companies with currency exposure to underestimate the financial impact of currency fluctuations on their business and miss the opportunity to develop a robust currency risk management strategy. Even when currency expertise is available, organizations may oversimplify the complexities of the risk. Or, they simply lack the resources needed to properly manage the cash flow and balance sheet risk associated with foreign operations or investing abroad. Since its earliest days, Chatham has been managing all facets of currency risk for our clients. We help them develop and execute strategies to understand and offset their exposures. Whether the risk is operational or driven by a transactional event, our expertise supports clients in two key…

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Our more than 20 years of experience and comprehensive knowledge of the real estate capital markets, makes us keenly attuned to the unique nature of real estate funds, the sheer number of transactions, and the reality that most funds have very lean operations. Whether it is pricing transparency and efficient market execution, our holistic strategic thinking surrounds portfolio and transactional risk. We also ease the administrative burdens associated with hedging and regulatory compliance. Real estate fund managers value our ability to partner with them in areas in which they need support. We don’t think strictly in terms of hedging products, but rather seek to understand investment goals and offer relevant solutions. Our success-based fee structure is tied to deal execution, so that you are spared dead deal costs and watching the clock. Through this partnership we not only understand the…

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On January 1, 1999, the euro (EUR) made its debut as an official European currency and lawful means of exchange for 12 independent states. Ten short years later, another revolutionary currency was introduced to the world. This new money is the first attempt at a “crypto-currency” and has recently become a topic of immense interest in financial circles, not just for its technical idiosyncrasies (you can “mine”) but its economic rules: decentralization, fixed supply, pure floating currency. We’re talking of course about Bitcoins (BTC). If you read the Wall Street Journal, The Economist, Financial Times, chances are you have come across the concept; maybe you’re one of the few that’s been curious enough to trade. What separates the euro, the US dollar, or other traditional currencies from Bitcoins is that they’re not issued by a central monetary authority. Standing in…

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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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