Kroll and Coglianese on auditing prediction markets

Why this session

Registration was the hard part right up until it was finished. What follows it is a certified annual financial report due 60 days after fiscal year end under Regulation 1.10(b)(1)(ii), a first examination from the National Futures Association, and a set of segregation and capital rules that were written for margined futures and land awkwardly on a fully collateralized product.

Chris Copley of Kroll and Michael Coglianese spend thirty minutes on what that means in practice. No slides, and no introduction to what a prediction market is. The audience already knows.

What we are asking

1. What a first examination covers for a firm registered under two years, and what examiners open first.
2. How to compute the 8 percent risk margin requirement in Regulation 1.17 when contracts are fully collateralized and nobody posts variation margin.
3. What happens to segregation and account classification if a court decides event contracts are not swaps.
4. Which certified public accounting firms are actually permitted to sign the audit report, and why most are not.
5. What Regulation 1.44 changed for firms that are not clearing members, and where that landed mid fiscal year.
6. What to have ready 60 days before fiscal year end, in the order it gets asked for.

Send your own question with your registration and we will work it into the run of show.

Who should be on it

Chief financial officers, controllers, chief compliance officers and general counsel at registered futures commission merchants, and at firms with an application pending. It is also useful if you sit at a designated contract market or a clearing organization and want to hear how the intermediary side of this is being handled.

If you are earlier than that, still deciding how to structure the entity, the session will be more useful than a search result but it is not a primer.

Who is talking