The IECA's Dodd-Frank Working Group (DFWG), chaired by Phil Lookadoo of Reed Smith LLP, continues to provide a primarily educational forum in which participants join a weekly conference call to update each other on developments before the Commodity Futures Trading Commission (CFTC). Under the Dodd-Frank Act, the CFTC is halfway through its second year of proceedings intended to establish regulations for the previously unregulated markets for over-the-counter financial derivatives (also called "swaps").

 

The DFWG focuses its efforts on the impacts such regulation will have on end-users of swaps and is an advocate for the continued ability to utilize bilaterally-negotiated swaps and bilaterally-negotiated credit support for swaps. The CFTC has completed most of its "proposed" rules and is in the process of analyzing comments received from the public, including several written comments submitted by the IECA acting through the DFWG, from which the CFTC has now begun issuing its "final" rules.

 

The DFWG continues to provide a forum for market participants, primarily energy companies using energy commodity swaps to hedge their exposure to commodity price and supply volatility, to stay abreast of the CFTC's final rules imposing a comprehensive regulatory scheme with respect to swaps. The first of its "final" rules were published in the fall of 2011, but the CFTC will not likely issue the last of these "final" rules any sooner than the end of the second quarter of 2012.

 

In addition, several of the CFTC's final rules will likely be the subject of appellate litigation as participants in the swaps markets seek to affect the CFTC's efforts to subject swaps transactions and swap-market participants to the type of comprehensive regulation the CFTC has applied over the years to regulated futures contracts and the regulated exchanges on which futures contracts are traded.

 

The DFWG's current projects include: (i) keeping its members abreast of the CFTC's yet-to-be-issued final rules, including the much-awaited (a) definitions of "Swap Dealer" and "Swap," (b) the End-User Exception to the mandatory trading and clearing requirements for swaps, (c) the Swap Documentation Requirements for uncleared (bilateral) swaps, and (d) the Margin and Capital Requirements for cleared and uncleared swaps; (ii) updating a Swap Data Recordkeeping and Reporting memo, which summarizes several different final and proposed rules that impose recordkeeping and reporting obligations on all participants in both current and future swaps markets; (iii) following judicial appeals of the CFTC's final rule on Position Limits; and (iv) compiling a list of issues under the various final rules that the IECA or individual members may seek clarification from the CFTC by requesting reconsideration of specific rulemakings or by seeking interpretive letters or no-action letters from the CFTC.

 

Participation in the IECA's DFWG is open to all IECA members, so if you are interested in participating in the DFWG weekly conference calls and its other activities, please send an e-mail to any of the following: plookadoo@reedsmith.com, andres.aquila@bmo.com, zack.starbird@bp.com, or TBrown@tnsk.com.

IECA Has Another Successful Year, Looking Forward to More Member Value in 2012

The IECA continued to expand its presence internationally during 2011, reaching about 1,440 members across the United States, Canada, Europe and Asia. During 2011 the IECA offered educational events on three continents and also conducted several successful educational webinars, such as "The Implications of the Credit Downgrade of the U.S. Debt and the Future Outlook," presented by Mark Zandi, Chief Economist of Moody's Analytics. The educational events IECA provided were rated by the membership as first class, with valuable networking and brainstorming opportunities.

 

In 2011 IECA launched an electronic publication, IECA Insights, to deliver the latest association news along with information on upcoming events. Another six issues of Insights are planned for 2012. 

 

The IECA is also now registered with the Global Association of Risk Professionals (GARP) as a provider of continuing professional education (CPE). GARP joins the other certification programs (CPE, CLE, and CFA) already offered to IECA membership.

 

IECA's goal is to always maximize the "value" of your IECA membership. Here is what to expect in 2012:

 

New IECA Website

The IECA is working to develop a more dynamic, robust and user friendly website. The new interactive platform will feature enhanced member profiles, expanded resources, networking access to 1,440 industry professionals, along with access to upcoming events, seminars and continuing education.

 

More Webinars

IECA is proud to offer educational webinars to the membership on a regular basis. Please be on the lookout for e-mail blasts and announcements on the IECA website.

 

Top-Notch Conference & Events

We continue to enhance the educational programming and networking for conferences, seminars and events. Please mark your calendars for the events listed in the sidebar!

Jerry Burt

IECA Executive Vice President, Jerry Burt, plans to retire in 2012. As EVP since 2007, Mr. Burt has been instrumental in developing and delivering a high-quality education platform for the IECA. In addition, Mr. Burt has expanded the sponsorship program for North America. Some of Mr. Burt's accomplishments include the establishment of the credit risk management certification program (hosted by Moody's Analytics), expanding online educational opportunities and fostering partnerships with a multitude of continuing education providers including NASBA and GARP. "Jerry has brought a tremendous amount of leadership and energy to the IECA education programs," said Paul Krebs, IECA President. "The association will be losing an invaluable member of the IECA family." Further communication about Mr. Burt's retirement will be provided in the spring 2012.

IECA Spring Conference to Provide Valuable Educational Opportunities

 

The 2012 IECA Spring Education Conference at the Newport Beach Marriott Hotel & Spa in Newport Beach, Calif., will feature the same great educational and networking opportunities IECA members have come to expect. Highlights include a lunch with speaker Dominick Chirichella and a keynote presentation from Chris Kuehl, Managing Director, at Armada Corporate Intelligence. 

 

The Changing Landscape of Geopolitics of Energy

Dominick Chirichella, Senior Partner, Energy Management Institute

The massive volatility in oil prices is dominating today's news, along with actions by the evolving debt issues in the EU as well as the Arab Spring and Iran. Geopolitical events, the ups and downs of the U.S. dollar, the activity of the speculative and investment community as well as the normal traditional market fundamentals are all working together to create an oil price environment that is unprecedented. How one interprets and integrates all of the dynamic price drivers will be crucial for any company with energy exposure. Join Dominick Chirichella for a comprehensive discussion on the current state of the international energy markets. 

 

2012 - Year of the Dragon or the Year We're Still Dragging

Chris Kuehl, Managing Director, Armada Corporate Intelligence

This is the year when politics and economics intersect in the U.S. and globally. What does that mean for the energy industry? Is this the year the recession is finally left behind? Is it the year inflation finally rears its ugly head? The hangover issues from past years are still with us - everything from Europe to the deficit/debt fight. There will be new ones emerging as well, just as there were unforeseen events that affected energy last year-the tsunami in Japan, Arab Spring and others.

 

In addition to these two great presentations, education sessions include the following: 

• Corporate Credit Rating Analysis (IECA Certification Program)
• Refining Trends: An Overview of the Industry
• New Tools in Valuation - How to Implement Earnings-Based Valuation Approaches
• Tackling Challenges of Analyzing Private Companies
• Cross-Border Bankruptcy and Insolvency Proceedings in the United States and Canada - How Does it Work and What is the Current Landscape?
• Embedding Counterparty Risk and Collateral Costs in Commodities Markets Contracts
• Understanding the ISDA Credit Support Annex
• Retail Energy - A Shifting Environment Calls for Creative Measures
• Credit Requirements Under Energy Master Agreements - Enhancing Your Protection and Recovery
• Energy Trading for the Non-Trader
• Dodd-Frank OTC Derivatives Reform - Compliance Enforcement
• The Dynamics of Collateral under Dodd-Frank
• Development of Risk Management Standards for ISO/RTO Market Participants
• Exchanges and FCMs in the Wake of MF Global

Review the Spring Conference Registration Brochure for more information and to register by mail or fax. To register online, visit www.ieca.net. 

 

Hotel Reservations

The special IECA room rate is not guaranteed after Monday, February 20, 2012, so be sure to make your reservation. To make hotel reservations, call 1-800-266-9432 and mention you're attending the IECA Spring Education Conference to receive the discounted rate of $229 plus tax. You may also reserve your room online here.

European Committee Restructured for 2012

 

As a result of several departures, the European Committee is entering 2012 with a restructured leadership. 

 

Ivan Melamud has stepped down as Chair of the European Committee but remains an active member of the committee and a member of the IECA Board. Ivan's contribution and commitment to the IECA has been immense and he has implemented changes to the structure of the committee to provide additional educational seminars and events for existing members, expand European membership across Europe and increase the European Committee membership.  

 

Vince Oliver has also stepped down as IECA Executive VP, Europe. IECA wishes Vince the very best for the future and warmly thanks him for his dedication through the many years that he has worked for the organization. To help fill the void left by Vince, David Stone has agreed to take on administration of the European Committee and has become a consultant to the IECA in Europe. We wish David all the best in his new role.

 

The European Committee has also established four new subcommittees:

• Sponsorship - led by Kyri Evagora
• Membership - led by John Treasure
• Education - led by John Turnbull 
• Events - led James Blount

Time to Renew Your Membership

 

You should have already received your 2012 membership dues invoice, but why wait to return it? Take a moment and renew your dues today! Your 2012 dues must be paid in order to register for the Spring Conference at the discounted member rate. 

 

Regular Members

Renew your regular membership ($325) online today at www.ieca.net. 

 

Three Easy Steps:

• Log into www.ieca.net
• Sign in using your e-mail address and password
• Click on "Pay dues for 2012" 

Corporate Members

If you qualify for corporate membership (it requires five or more employees from one company), you must contact Ryan Harkins, IECA Membership Coordinator, and submit a corporate dues renewal form. Corporate membership is $275 per member.

If you would like to submit member news for a future issue of IECA Insights send your information to Laura Brown at Laura_Brown@murphyoilcorp.com.