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Monday, October 24th, 2011 GEM Speaker Series with Vaagn Zakarian and Dr. Jay Lindgren

October 17, 2011

“Dodd-Frank’s Impact on Energy Companies”

Vaagn Zakarian and Dr. Jay Lindgren

Presented by: 

Vaagn Zakarian
PA Consulting GroupDr. Jay Lindgren
PA Energy Risk Expert

 Monday, October 24th, 2011
11:30 am – 1:00 pm
GEM Conference Room, 5th Floor
1600 Broadway, Denver, CO 80202
Click Here to RSVP

About the Presentation:

The CFTC has completed the process of drafting the critical rules governing the OTC derivatives market. These rules impact all energy companies, regardless of exception status. For instance, companies wanting to receive the end-user exception must provide evidence that all their derivative instruments hedge underlying business risks. Those companies seeking exception but not accustomed to the documentation requirements of hedge accounting will discover that proving qualification for the end-user exception requires a significant investment in time and resources. On the other hand, companies that do not qualify for the end-user exception must make even more difficult decisions, including whether to remain in their current line of business or to integrate vertically to take advantage of natural hedges. Dodd-Frank derivatives rules will require all swap market participants, regardless of exception status, to report swaps for market transparency purposes.

Learning Outcomes:

  • Review the methods available for energy companies to obtain end-user exceptions to mandatory clearing of swaps
  • Detail the investments necessary to prove status as an end-user on an ongoing basis
  • Review the time frame to implement procedures for position swap reporting
  • Understand the details of regulatory reporting requirements, including products covered, communication process, data format, and timing
  • Prepare for IT system changes needed to comply with reporting requirements
  • Determine the analytics required to manage the collateral risks associated with cleared trading
  • Review strategic alternatives to cleared trading for non-exempt energy companies

About Our Speakers:

Vaagn Zakarian, PA Consulting Group, is an energy market modeling expert with 15 years of experience. He helps clients solve today’s complex challenges and plan ahead by quantifying risks and uncertainties of the energy markets. He supports clients in finding optimal strategies under certain regulatory, contract and market conditions. This ranges from managing credit, cash flow and collateral requirements to applying market fundamentals and price volatility projections to asset valuation. He is a co-author of PA’s several proprietary models such as energy supply portfolio optimization to maximize benefits and conform to environmental regulations. Vaagn has a Ph.D. in Computational Modeling of Neural Networks and B.S. and M.S. in Electrical Engineering.

Dr. Jay Lindgren is a PA energy risk expert with 18 years of experience. He is responsible for developing and implementing advanced quantitative methods for client organizations like SemGroup and Calpine. He has worked on projects related to asset/contract valuation, risk measurement and portfolio optimization. He also supports client engagements involving risk management program development and development of marketing and trading strategies. Jay has published numerous publications and is a frequent speaker on the conference circuit. He has worked with water utility clients regarding the water market and trading exercises. Dr. Lindgren holds a Ph.D. in Space Plasma Physics for which he wrote a Magneto hydrodynamic model of Halley’s Comet and Titan a moon of Saturn.

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