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by Roland Kielman

Related Information

Call for Open Access

DTCC recently hosted Rep. Randy Neugebauer (R-TX) for a briefing and live demonstration of its Trade Information Warehouse and new online regulatory portal.

The visit, a component of DTCC’s ongoing outreach to lawmakers on Capitol Hill, concluded with Neugebauer recording a video podcast for DTCC’s government relations podcast series, entitled Financial Reform In-Focus.

Neugebauer is a prominent member of both the House Financial Services and Agriculture Committees. He also chairs the Financial Services Oversight and Investigations Subcommittee, which is responsible for oversight of the agencies and departments under the Committee’s jurisdiction, including the Federal Reserve, Treasury and the Federal Deposit Insurance Corporation, among others. He is serving his fifth term in office.

On the record

DTCC created its Financial Reform In-Focus podcast series to help build awareness of key issues related to the implementation of Dodd-Frank in the U.S. and the drafting of European Market Infrastructure Regulation (EMIR) in the E.U. It consists of both audio and video segments.

Previous podcasts include DTCC senior executives talking about global harmonization of regulations and interviews with high-profile lawmakers, including Congressman Michael Grimm (R-NY) of the House Financial Services Committee.

The podcasts, which will continue to feature prominent members of the financial community, are distributed to lawmakers, regulators, market participants and members of the media in the both the U.S. and E.U.

Conversation with Rep. Neugebauer

Dan Cohen, DTCC managing director of Government Relations, interviewed Rep. Neugebauer for his video segment on Financial Reform In-Focus. Below are excerpts. To view the podcast in its entirety, visit, iTunes or YouTube.

DTCC: We talk about harmonization between the U.S. and our global allies, but at the same time, we need to harmonize regulations between the SEC [Securities and Exchange Commission] and the CFTC [Commodity Futures Trading Commission]. How do you see the regulatory process moving and how do you see the congressional committees playing a role in overseeing the coordination and harmonization of the new rules?

RN: We have been having hearings in both committees, making sure that we listen to the testimony of both regulators. In Financial Services, we have actually had hearings with both regulators in the room at the same time – asking them, “are they talking” and bringing up some of the issues we hear people in the industry talking about. But I think that is an important point. Harmonization not only with other markets around the world is important but harmonization between these agencies so that we don’t create any arbitrage opportunities and make the markets more onerous, because some entities are covered by both of these regulators....We need to be extremely careful that we have consistent regulation.

One of the things we have asked them to do is slow down that process because they’re putting out all of these regulations without a clear map of what the world looks like when we get finished. What we are seeing are pieces of a puzzle, but we don’t even know what the puzzle actually looks like.

DTCC: Is there a possibility of a technical corrections bill moving through this Congress to try and fix some of the issues that the regulators are dealing with?

RN: I’m hopeful we can do that because I think it is important to get this right. When you pass a massive piece of legislation, you know you’re going to miss some things and I think for Congress not to seriously consider going back and making some corrections... I don’t think we would be doing our job... I think there is interest in Congress in doing that, but obviously it takes the House and Senate, and certainly we’d have to have the cooperation of the White House.

Hopefully the agencies, in some cases, would help us with that agenda by coming forward and saying these are areas where we need Congress to work with us. I think that opens up the opportunity for some bipartisan support.

DTCC: Unquestionably, this is a global industry. What is the Congress doing to communicate with our European allies... to make sure that the two sides of the Atlantic are harmonizing regulations in an appropriate fashion?

RN: We know that discussions are going on from a regulator-to-regulator standpoint, but I think more discussion needs to go on with elected officials in those countries because everybody realizes there is a lot at stake.

One of the concerns I have is that in many cases our regulators are moving at a much faster rate than the regulators in some of the other countries. To me that is going to be problematic because if, in fact, our regulations are put in place, and it is several years before regulations are put in place in some of these other countries, obviously it creates an opportunity for arbitrage or moving markets to areas where it is less onerous for those participants to play or more efficient for those participants to play because of the regulations that are in place.@