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by Roland Kielman

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  • Lawmakers responsible for the oversight of Dodd-Frank face a difficult task and they need the industry’s help,” said Larry Thompson, DTCC Managing Director and General Counsel.“This is the largest financial legislative package in American history and it covers some of the most complex elements of the industry – we want to use our expertise to help lawmakers gain a better understanding of what DTCC does and why our operations are critical to the safety and soundness of global markets.”

    As part of this effort, DTCC recently hosted staff members from the House Agriculture Committee for a full-day briefing on the company’s role in mitigating risk in the global financial system and, in particular, the global derivatives markets. DTCC organized a similar briefing for staff members from the House Financial Services Committee in November, and continues to give regular briefings to members of Congress.

    “Over the past three years, DTCC has been executing a strategy to position the company as a reliable resource on issues related to international financial policy and the financial post-trade infrastructure,” said Thompson. “In the U.S., the result is that we now have a strong network of relationships with the committees and policymakers that play a leading role in the government’s oversight of the financial industry, including oversight of the implemen-tation of Dodd-Frank.”

    On the agenda

    The briefing for House Agriculture Committee staffers, attended by a bipartisan group of 24 staff members, focused primarily on DTCC’s role in the derivatives post-trade space.

    The program featured presentations by executives from DTCC and New York Portfolio Clearing (NYPC), DTCC’s joint venture with NYSE Euronext. The discussions focused on DTCC’s operation of data repositories for the global over-the-counter derivatives community and the innovative “one-pot” margining solution employed by NYPC.

    For the committee staff members, it was an opportunity to learn more about the financial markets that their comm-ittee is responsible for overseeing.

    “Derivatives are a hot topic right now, especially within our committee, which has direct jurisdiction over these financial markets,” said Cachavious English, Legislative Assistant for Congresswoman Terri Sewell (D-AL). “This was a great opportunity to learn first-hand from the people who work with these financial products every day.”

    The agenda also featured Robert Colby, former Deputy Director of the Securities and Exchange Commission’s Division of Trading and Markets, and Michael Dunn, former Commissioner for the Commodity Futures Trading Commission. Their discussion gave guests a glimpse into the rulemaking process of two of the U.S.’s leading regulatory agencies.

    The briefing also gave DTCC an oppor-tunity to update the congressional delegation on the state of global financial reform. Dan Cohen, DTCC Managing Director, Government Relations, who meets regularly with lawmakers and regulators in the U.S., Europe and Asia, provided an update on derivatives reform occurring globally. Cohen also fielded questions from attendees who were eager to learn more about the work of their international counterparts.

    The day concluded with a trip to the New York Stock Exchange, where the delegation received a briefing on NYSE Euronext’s service offerings before viewing the market’s closing bell. @