At the request of several attendees at the upcoming ISDA seminar, the seminar agenda has been expanded to include an in-depth look at the mandatory margin requirements for uncleared swaps and its effect on various market participants. Dodd-Frank’s swap margin rule requirements became applicable for “financial end-users” on March 1, 2017. However, there appears to be a considerable amount of confusion among market participants about which type of entities are included in the definition of “financial end-user.” In order to address this issue, the seminar will examine the statutory definition of the term financial end-user and some practical steps that market participants can apply in determining their status under the rule. Also, the seminar will include the differences between the terms “hedging entity” and “financial end-user” due to some uncertainty about the impact of each designation on the margin rule implementation.
Many end-users including energy companies, commodity producers, transporters, and marketers have been receiving numerous self-disclosure letters from swap dealers and major swap participants requesting certain identifying information, even though those end-users may not be considered “financial end-users.” The seminar will examine the scope of the margin rule’s impact on the non-financial end-users and what exactly they are required to comply with under the margin rule. In addition, the practical implementation of any margin rule requirements is very likely to impact the underlying swap documentation including any credit support documentation. The seminar will examine some practical steps that can assist market participants in the most efficient way for amending existing documentation in order to comply with the margin rule.
The margin rule’s requirements are likely to increase the cost of OTC (uncleared) derivatives. One of the most pressing challenges for all market participants is the impact of this increased transactional cost on their hedging ability. All end-users, whether financial or non-financial, may have to re-evaluate the availability of hedging opportunities due to market liquidity fluctuations and the cost fluctuation associated with their particular hedging strategies. The hedging headwinds may also be amplified by the potential for regulatory arbitrage as United States regulators, including the CFTC and the Prudential Regulators (OCC, FRB, FDIC, FCA, and FHFA), are expected to significantly modify the Dodd-Frank rules while the European, Asian, Canadian, and Australian regulators are expected to continue their regulatory requirements unchanged, at least for now. The seminar will examine some practical implications of this regulatory arbitrage.
The seminar agenda can be found at the following link: http://kolobaralaw.com/client_alerts.html
Kolobara Law Firm, LLC will conduct a two-day seminar titled “UNDERSTANDING ISDA® AGREEMENT IN THE EVOLVING REGULATORY ENVIRONMENT” on April 5-6, 2017, in Omaha, Nebraska. The seminar is intended to help attendees better understand the key provisions of the ISDA® Master Agreement, Credit Support Annex and various Schedules. In addition, attendees will learn the most relevant and recent regulatory developments regarding mandatory margin requirements, position limits, collateral management, and reporting requirements. This seminar will be a hands-on, practical review and analysis of the architecture of ISDA® documentation, including the 1992 and 2002 Master Agreements, 1994 Credit Support Annex, and Schedules to the master agreement and credit support annex, natural gas and power annex, crude oil annex, long form confirmation.
DAY ONE: APRIL 5, 2017
8:00 AM Registration and Continental Breakfast
8:30 AM The 1992 ISDA® Master Agreement:
- Section-by-section review and analysis of the 1992 ISDA® Master Agreement
- Review of key differences between the 1992 and 2002 ISDA® Master Agreements
10:00 AM Morning Break
10:15 AM Schedule to the 1992 and 2002 ISDA® Master Agreement
- Review of adequate assurances provisions in the ISDA® Schedule
- Examination of relevant calculation agent issues
- Identifying the relevant bankruptcy code representations in the ISDA® Schedule
- The pros and cons of cross-product and cross-affiliate netting and setoff
- Damages and close-out methodologies
- Events of Default and Termination Events
- Counterparty default management
- Set-Off provision
- Interest rate provisions
11:45 Noon Lunch
1:00 PM ISDA® Protocols and Annexes
- August 2012 and March 2013 ISDA® Dodd-Frank Protocols
- EMIR Protocol requirements for the U.S. companies
- Margin Protocol
- Mandatory reporting requirements obligations for end-users
2:30 PM Afternoon Break
2:45 PM Using ISDA® Master Agreement for Physical Commodity Transactions
- Oil Annex
- Power Annex
- Gas Annex
- Bridge Agreement
4: 15 PM End of Day One Session
DAY TWO: APRIL 6, 2017
8:00 AM Continental Breakfast
8:30 AM 1994 ISDA® Credit Support Annex
- Section-by-section review and analysis of 1994 ISDA® Credit Support Annex
10:00 AM Morning Break
10:15 AM Paragraph 13 to Credit Support Annex
- Relevant issues when negotiating exposure thresholds
- Parent guarantees considerations in derivatives transactions
- Letters of credit as collateral for derivatives transactions
- Margin calculation procedures
- Collateral management for derivatives transactions
1:00 PM Review of Supporting Documentation for ISDA® Master Agreement
- Board resolutions and incumbency certificates
- Risk management and trading policies and procedures for derivatives transactions
- Review of recent regulatory development impacting ISDA® agreement
2:30 PM Afternoon Break
2:45 PM Negotiation Strategies for Over the Counter derivatives
- Managing counterparty and operational risk in derivatives transactions
- Memorializing derivatives transactions with long-form confirmations
- Questions and answers
4:15 PM Closing Remarks
Agenda is subject to change.
REGISTRATION FEE – $ 1,599.00
We suggest registering at least two weeks in advance to ensure your seat.
Seminar will be held at the Scott Conference Center located at 6450 Pine St., Omaha, NE 68106 (www.scottcenter.com).
For more information about this seminar please contact Kolobara Law Firm at firstname.lastname@example.org or call 402-881-3987.
In recent years, participants in over-the-counter (“OTC”) derivatives markets have experienced an unprecedented regulatory burden. Because of Dodd-Frank, EMIR and similar regulations, the documentation for OTC derivatives is becoming increasingly complex and risky. Many companies are uncertain about their ability to hedge due to regulatory and financial risk associated with derivatives documentation. In order to facilitate an in-depth analysis of the OTC documentation drafting, analysis, and review, I will be conducting a two-day ISDA® seminar on April 5-6, 2017, in Omaha, NE
This seminar is intended to help attendees better understand the key provisions of the ISDA® Master Agreement, Credit Support Annex and various Schedules. In addition, attendees will learn the most relevant and recent regulatory developments regarding mandatory margin requirements, position limits, collateral management, and reporting requirements.
Some of the topics to be covered during this seminar will be:
- Architecture of ISDA® Documentation
- 1992 and 2002 Master Agreements
- 1994 Credit Support Annex
- Schedules to the master agreement and credit support annex, natural gas and power annex, crude oil annex, long form confirmation.
- Various confirmation provisions for interest rate, credit default, and FX swaps.
- Comprehensive overview of events of defaults, remedies, cross-affiliate and cross-products netting and setoff.
- Bankruptcy and liquidation considerations.
- Special considerations regarding swap reporting and recordkeeping under Dodd-Frank.
- ISDA® August 2012 and March 2013 Dodd-Frank Protocols.
- EMIR provisions applicabe to the U.S. market participants.
For more information about this seminar please contact Kolobara Law Firm by email at email@example.com or by phone at 402-881-3987.