Like DTCC, the Securities and Exchange Commission (SEC) supports removing the indemnification requirement from the Dodd-Frank Act.
Ethiopis Tafara, Director, the SEC’s Office of International Affairs, made this announcement during the same House Capital Markets Subcommittee hearing at which DTCC President and CEO Donald F. Donahue testified.
This was a positive development because, as Tafara noted, the SEC "would be legally unable to meet any such indemnification requirement and has argued vigorously against similar requirements in other contexts."
Tafara also told the subcommittee the "indemnification requirement interferes with access to essential information, including information about the cross-border OTC derivatives markets. In removing the indemnification requirement, Congress would assist the SEC, as well as other U.S. regulators, in securing the access it needs to data held in global trade repositories. Removing the indemnification requirement would address a significant issue of contention with our foreign counterparts, while leaving intact confidentiality protections for the information provided."
The Commodity Futures Trading Commission (CFTC) has taken no official position on the legislation. Rather it is focusing on a regulatory "workaround" in the form of a draft interpretive guidance the agency is expected to place into the public record.