Thank you for holding today’s hearing to discuss legislative proposals to amend or repeal provisions in Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). The Depository Trust & Clearing Corporation (DTCC) and its subsidiary, DTCC Data Repository (U.S.) support efforts to improve the effectiveness of this landmark legislation, particularly in areas related to regulators’ ability to access and utilize a global data set for systemic risk oversight and mitigation purposes.
DTCC strongly supports the Swap Data Repository and Clearinghouse Indemnification Correction Act of 2013 (H.R. 742), a bipartisan proposal co-sponsored by Congressman Bill Huizenga (R-MI), Congresswoman Gwen Moore (D-WI), Congressman Rick Crawford (R-AR), and Congressman Sean Patrick Maloney (D-NY). The legislation was reported out of the House Agriculture Committee on March 20, 2013 with bipartisan support. H.R. 742 will resolve issues surrounding Dodd-Frank’s indemnification provisions and confidentiality requirements.
My testimony today explains the Dodd-Frank indemnification provision, how it will fragment swap data, and how fragmentation will hinder regulators’ efforts to oversee a global market. I also provide information on how indemnification risks negating the existing global data sharing framework. Finally, I will address the Commodity Futures Trading Commission’s (CFTC) Interpretative Statement, what it may mean for U.S. regulators, and explain why legislation is needed in this instance.
Download the Congressional Testimony: Testimony before the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises “Legislative Proposals Regarding Derivatives and SEC Economic Analysis"