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by Roland Kielman

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  • As our financial infrastructure plays such a significant role in achieving the transparency and risk reduction goals of Dodd-Frank, it is important for policymakers to be aware of how that infrastructure works.” These are the words of Sen. Robert Menendez (D-NJ), who wrote a letter to fellow senators about two DTCC publications that were subsequently distributed in the Senate.

    Reps. Carolyn Maloney (D-NY) and Leonard Lance (R-NJ) distributed the same publications with a cover letter to their colleagues in the House of Representatives. “DTCC plays a critical role in reducing risk, protecting the integrity of our financial system and helping attract capital to grow our economy,” the representatives wrote. “We believe DTCC’s knowledge and expertise will be extremely valuable to Members of Congress, especially new Members.”

    The publications, “A Guide to Clearance and Settlement” and “Lifecycle of a Security,” provide a high-level view of DTCC and its services, as well as the role of market infrastructure in ensuring safety, soundness and risk mitigation in the financial marketplace. They also address some of the key issues related to the implementation of Dodd-Frank, including clearing, trade repositories and central counterparties.

    “These short books explain in ‘plain English’ the post-trade process and provide insight into the critical role the infrastructure plays in making our financial markets work,” Menendez said.

    On the Hill

    The publications are one component of DTCC’s Government Relations program aimed at reinforcing under-standing of DTCC with lawmakers and educating them on the company’s role in protecting the stability of the global capital markets. “These publications are part of our ongoing effort to serve as the key resource of reliable and accurate information about our sector of the financial services industry for members of Congress and their staffs,” said Dan Cohen, DTCC managing director and head of Government Relations.

    DTCC executives have also given testimony on Capitol Hill. Donald F. Donahue, DTCC CEO, testified before the House Financial Services Committee in February and Larry Thompson, DTCC managing director and general counsel, before the Senate Committee on Agriculture, Nutrition and Forestry in March. Both addressed issues related to enhancing transparency in the over-the-counter derivatives markets. @