Chatham Financial Launches OTC Derivatives Website to Support Informed Legislation Changes

KENNETT SQUARE, Pa., July 22 /PRNewswire/ -- Chatham Financial, the largest independent interest rate and currency risk management consultant, announced today that it has launched www.HedgingWorks.com as a service to clients and business end users of OTC derivatives as part of an overall initiative to build awareness and better understanding of OTC derivatives legislative developments and their implications for business users.

"We support the four objectives for legislative reform that were identified by Treasury Secretary Timothy Geithner, but the ramifications for many business users of currently proposed legislation could be profound; many users are only beginning to understand the implications and costs. One-size-fits all legislation is risky. If new legislation doesn't recognize the differences between users, the responsible businesses which use OTC derivatives to mitigate everyday interest rate, foreign currency and commodity risk may be burdened with significant incremental costs. In addition there could be major complications with current trades, challenges with accounting hedge effectiveness, and a lack of liquidity in products that could make responsible hedging very expensive or impossible," according to Mike Bontrager, Founder and CEO, Chatham Financial.

The new website features resources for users to become more informed including a summary of "9 Consequential Points to Consider for OTC Derivatives Legislation", "Why Hedging Works", an interactive blog featuring updates from Capitol Hill, commentary from discussions Chatham and others in the industry are having with Congressional staff and leaders on issues and alternative options, and most importantly a chance for business users to make their voices heard on how currently proposed policy could detrimentally impact their business.

"Policymakers in Congress, Treasury and regulators have shared with us directly that the voice of business end users for OTC derivatives is not being heard in Washington. We are seeking to change that by engaging business leaders and policymakers to make sure everyone is well informed and understands the issues and implications. We believe good derivatives reforms can be achieved without hurting businesses which rely on OTC derivatives to responsibly manage their risks," according to Dave Hall, Chief Operating Officer, Chatham Financial.

Sally Ingberg from Forest City Enterprises, Inc. after attending a meeting in Washington, DC among industry and government policy makers last week stated, "Companies who depend on access to affordable and effective OTC derivatives to mitigate business risks everyday need to make their voices heard so that legislation intended to address issues created by a few does not result in new problems and risks for thousands of U.S. businesses."

HedgingWorks.com is one facet of an overall effort Chatham has launched partnering with policymakers, industry associations, publications, and end-users to create better understanding and stimulate action. Chatham is publishing and distributing materials to educate stakeholders, and conducting webinars to bring greater transparency to the debate and the potential effects different legislative approaches could have on the wider market.

About Chatham Financial

Founded in 1991, Chatham Financial is the largest independent interest rate and foreign exchange risk management consulting company. Annually Chatham advises more than 1,000 clients on over 8,000 transactions valued at $350 billion from its offices in the U.S., Europe and Asia.

Chatham serves its clients in the areas of interest rate and foreign currency risk management, debt valuations, capital advisory and defeasance, and is also among the largest independent advisors for accounting compliance (FAS 133, IAS39, and FAS 157).

SOURCE Chatham Financial