10Minutes on derivatives reform for non-financial services companies

December 2012
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Derivatives reform for non-financial services companies

At a glance

For non-financial services companies, regulations introduced by the Dodd-Frank Wall Street Reform and Consumer Protection Act and Basel III will result in significant changes to the derivatives market. Every aspect of a corporation using derivative to manage risk will ultimately be affected—from risk strategies and corporate funding to operations and accounting. This 10Minutes provides insight on the impacts of new regulation on corporate entities and what those entities need to do now in order to meet impending reform deadlines and ensure they're well equipped to manage increased costs and compliance responsibilities.

Beyond the banks: What derivatives reform means for the corporate world

Proposed regulatory reform through the Dodd-Frank Wall Street Reform and Consumer Protection Act and Basel III is causing significant change in the derivatives world. While the end goal of the derivatives provisions is ultimately to achieve less risk and greater stability in the derivatives market, new standards come at a considerable cost to corporate users.

Faced with the prospect of increased compliance costs, banks will look to pass these costs down to their customers. In addition, corporations will need to comply with new trading regulations and increased reporting and recordkeeping requirements.

Every aspect of business will likely be affected—from risk strategies and corporate funding to operations and accounting. This 10Minutes provides insight on the impacts of new regulation on corporate entities and what those entities need to do now in order to meet impending reform deadlines and ensure they're well equipped to manage increased costs and compliance responsibilities.

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