OTC Regulations: An Overview of the Financial Markets Act, Dodd Frank and EMIR
Audience: This course suits people in the legal and compliance teams as well as the operational teams (middle office) and front office who need to understand the new regulatory environment and how it will impact OTC derivatives and how they will be traded with their EU and US counterparts.
Why reducing systemic risk is important and how that can be achieved
An overview of the key components of the Financial Markets Act, Dodd Frank and EMIR regulations
Counterparty classification and definitions under the FMA, Dodd Frank and EMIR:
> FMA – what an ODP, Counterparty and Client are
> EMIR – Counterparty classification (FC, NFC+, NFC-), and requirements under EMIR for FC, NFC+ and NFC-
> Dodd Frank – what a ‘US Person’ is; what elements of Dodd Frank will apply (specifically to SA Counterparties); what a Swap Dealer, Foreign Branch, Conduit Affiliate and Guaranteed Affiliate under Dodd Frank are
What does substituted compliance mean and how does it operate under the FMA, EMIR and Dodd Frank?
What are the extraterritorial apsects of each of the regulatory regimes? What is a Third Country Entity?
Trade reporting: what it is, and what is required under the FMA, EMIR and Dodd Frank
Collateral and Margin Rules: what is VM and IM and what does each regulatory regime require from a collateral perspective? Who is in-scope and who / what is exempt?
Central Clearing: an introduction to the concept and what each regulatory regime prescribes
The ISDA protocols for regulatory compliance – when to use these and which are relevant for an SA Counterparty:
> EMIR NFC Representation Protocol, and the Portfolio Reconciliation Dispute Resolution and Disclosure Protocol
> Summary of the various D-F Protocols and their relevance to SA Counterparties
> The Universal Stay Protocol (including US Resolution Stay and the EU BRRD)
Outcomes: Delegates will gain a solid understanding of what regulatory changes will impact on the processes and documentation of OTC derivatives going forward. This is particularly useful as it gives delegates a South African focus on the global regulatory regimes and how these international regulations impact an SA counterpart.
Duration: 8 hours (9am – 5pm)
Cost: R8 500 per person (excluding VAT)