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Congressional Testimony

Larry E. Thompson, Managing Director and General Counsel | October 7, 2009

Chairman Frank, Ranking Member Bacchus and Members of the Committee, my name is Larry E. Thompson, General Counsel for The Depository Trust & Clearing Corporation (DTCC) and I’d like to thank you and the members of the Committee for the opportunity to share with you today our views as you consider legislation concerning the regulation of over-the-counter derivatives markets in light of the lessons learned during the past year’s financial crisis.

We applaud the work of the Administration and this Committee under your leadership to advance the cause of providing sensible and effective regulation for the over-the -counter (OTC) derivatives markets. We share your desire to ensure more transparent markets for regulators, who must oversee market stability and mitigate systemic risk, and the public, who require more precise information, while ensuring that innovation and risk mitigation that are trademarks of the OTC business continue to exist. Our testimony will focus principally on one aspect that we strongly believe undermines the goals of re-regulation and represents a step backward by reducing the level of transparency that now exists. As you will note, we believe strongly that regulators and the public need a consolidated source of market information. However, the various proposals under consideration will result in fragmentation of that information. We present a specific proposal to remedy that situation.

Download the Congressional Testimony: Testimony Before U.S. House Committee on Financial Services