Former Commodity Futures Trading Commissioner Michael V. Dunn joined DTCC on May 12 to serve as the non-executive Chairman of its U.S. Swap Data Repository (SDR).
Dunn will play an instrumental role in the development of DTCC’s U.S. SDR, ensuring open lines of communication with clients, regulators and industry partners. In addition to his direct role in developing procedures and policies to ensure that the U.S. SDR is fully and effectively compliant with both the spirit and the letter of existing regulation, Dunn will work with global regulators to harmonize the various international reporting constituencies.
Dunn will report to DTCC President and CEO-elect Michael Bodson, who will succeed Donald F. Donahue in July.
“This appointment is a key part of DTCC’s long-term strategy to effectively and seamlessly build our U.S. SDR capability,” said Bodson. “Commissioner Dunn is a seasoned regulator who has demonstrated a significant understanding of how our business works to reduce risk and increase transparency, especially during the last few years of market volatility and industry change.”
DTCC’s Executive Chairman Robert Druskin added, “Commissioner Dunn’s deep experience in Washington, D.C. – in Congress, at the Department of Agriculture and at the CFTC – has given him a strong understanding of the legislative and regulatory needs for comprehensive data and tools to evaluate and mitigate risk in the global financial markets. We have great confidence that he will be able to fully align our SDR development with the needs of both our regulators and our clients for the benefit of all.”
DTCC: ‘the critical link’
“I would like to express my sincere gratitude to Mike Bodson and the DTCC leadership team for offering me this opportunity,” said Commissioner Dunn.
“During my tenure at the Commission, DTCC consistently demonstrated why it is trusted by both the market and regulators as the critical link to accurate, detailed, transparent and aggregated data from the global financial markets,” he added. “With the pending new requirements of the Dodd-Frank Act [DFA] – which are designed to provide effective transparency into the credit, interest, equity, foreign exchange and commodities derivative markets – my role is to add both a deeper regulatory insight into DTCC’s SDR development and its operational capabilities, so that the intent of the DFA and the needs of the financial markets are effectively met while retaining the use and availability of these critical financial tools.
First OTC derivatives repository
DTCC developed the world’s first trade repository for OTC credit derivatives, initially called the Trade Information Warehouse.
The Warehouse now houses trade information on more than 98% of all the OTC credit derivatives globally. DTCC subsequently received industry approval, following competitive processes, to develop global trade repository services for equity, interest rate, commodity (with the European Federation of Energy Traders) and foreign exchange (with SWIFT) OTC markets.
Michael V. Dunn, DTCC non-executive Chairman, U.S. Swap Data Repository
First regulatory portal
As part of its support for the markets, DTCC also developed a separate, web-based regulatory portal that permits regulatory agencies from around the world, based on voluntary reporting agreements and supervisory authority entitlements, to obtain near real-time information on credit derivatives trading.
That portal was later expanded to include OTC equity derivatives and interest rate derivatives, and will also be used for commodities and foreign exchange trading reporting beginning in the fourth quarter. Some 40 regulatory agencies globally currently use the portal for derivatives monitoring.
More on Dunn
Commissioner Dunn, who remains a Senior Policy Advisor at Patton Boggs LLP on a part-time basis, was confirmed by the U.S. Senate on November 21, 2004, as a Commissioner of the Commodity Futures Trading Commission (CFTC). He was sworn in on December 6, 2004, to a term expiring June 19, 2006. On June 16, 2006, Commissioner Dunn was nominated by President George W. Bush to a second term as Commissioner of the CFTC and confirmed by the Senate on August 3, 2006. In addition, Dunn served as Acting Chairman of the CFTC from January 20 to May 19, 2009.
During his tenure at the CFTC, Commissioner Dunn also served as Chairman and Designated Federal Official of the CFTC’s Agricultural Advisory Committee. He has had numerous appointments at the Department of Agriculture and on Capitol Hill.
In total, he has held seven presidentially appointed positions involving federal regulations and policy. In 2011, the Futures Industry Association inducted Commissioner Dunn into its Futures Hall of Fame. @