by Roland Kielman
More than 250 prominent members of the European and U.S. financial industry, along with key regulators from around the globe, gathered recently in Paris for a seminar hosted by European think-tank Eurofi. Organized in collaboration with the French Presidency of the G20, the annual Eurofi High-Level Seminar provided a forum for discussing issues critical to financial regulatory reform on both sides of the Atlantic.
Donald F. Donahue, DTCC's chairman and CEO, was a featured speaker at the conference and also participated on a panel discussion.
Central vantage point
Donahue spoke on the transparency of the commodities and over-the-counter (OTC) derivatives markets and focused on the need for central repositories, or registries, of OTC derivatives contracts to help ensure regulators globally have access to timely and accurate information related to these financial instruments.
"It's absolutely critical that regulators have access to financial data that can help them identify the totality of an institution's risk exposures, including its derivatives exposures," Donahue said. "They need to see all exposures - domestic, international and cross-border - that may endanger financial stability or cause systemic problems."
According to Donahue, a global repository per asset class - such as DTCC's Trade Information Warehouse (TIW) - gives regulators "a central vantage point that permits them to gauge the totality of a firm's risk exposure across multiple markets worldwide."
Michael Sherwood of Goldman Sachs, was also a featured speaker in this panel session.
Forum for debate
The event, held on February 17-18, included a dozen panel discussions addressing issues related to the sustainability, efficiency, transparency and regulation of the global financial marketplace. Most sessions functioned as active debates, moderated by a chairman and introduced by several short speeches. Donahue also participated on a panel that included six other members of the financial industry, as well as a number of international regulators, which covered the stability of cash markets.
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Eurofi is a non-profit think tank dedicated to facilitating dialogue between industry leaders and global financial regulators and lawmakers to address ongoing regulatory and industry-driven issues and projects. @