In a new study by the advisory firm Chatham Financial, 60?percent of derivatives end-users who are readying for Dodd-Frank regulatory requirements, are unprepared.

From the 156 respondents consisting of treasury and risk management officials of U.S. and Europe-based firms that use derivatives in their risk management actions, they disclosed that along?with?Dodd Frank, 74 percent of these end-users are also not ready for EMIR requirements, reported Advanced Trading.?

Luke Zubrod, director at Chatham Financial, said in a press release, “Right now, as many firms are working toward complying with their home country regulations, they?re just beginning to scratch the surface of additional regulations stemming from the jurisdictions of their counterparties. This means additional cost, confusion and uncertainty ? the very factors end users enter into derivatives to avoid.?

Additional survey results included the following in response to how greater?OTC derivatives pricing would affect hedging behavior:

? 13 percent expect to either hedge less or stop hedging altogether

? 47 percent will pay higher prices

? 40 percent will look for alternatives to manage risk

? 22 percent may consider either voluntarily clearing their derivatives or utilizing exchange-traded products including futures?