Which Regulations Apply to a Transaction

Christina Norland of Chatham Financial discusses the importance of determining which regulatory regimes and regulatory requirements are relevant to you and your trades. In addition, she highlights four key considerations for identifying potential regulatory impacts.

As our clients our considering their hedging strategies, one of the things they have to consider are the regulatory implications for the transaction. The last thing that a client wants to hear is as they're getting ready to trade, they're unable to actually get the trade done because they have not completed the regulatory requirements.

In order to make sure that that happens, the very basic question that has to be answered are what requirements actually apply? When we look for those requirements or look to see what requirements apply, we often look at four different things. One, what is the actual jurisdiction's that apply to the client's hedging entity? What jurisdiction's rules apply to the counterparty? What does the transaction, involve in terms of specific regulatory requirements for that trade? And finally, whether or not there are any cross-border implications for the transaction itself.

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