DTCC Connection

Sep 01, 2011 • DTCC Connection

DTCC Extends Outreach to European Officials On Financial Reform

by Craig Donner


As the pace of financial reform gains momentum in the European Union (E.U.), DTCC is extending its government relations outreach to shape the policy debate and educate officials on its global capabilities in bringing greater transparency to the over-the-counter (OTC) derivatives market.


DTCC continues to develop relationships with key leaders in the E.U.’s three legislative bodies – Parliament, Council and Commission – and has also begun to hold briefings with legislative bodies and industry representatives in E.U. member states, including Poland, Belgium, Czech Republic, France, Greece and the U.K.


“These meetings are an important opportunity to introduce DTCC to government and regulatory officials throughout Europe and build awareness of our long history in providing stability and certainty to global financial markets,” said Dan Cohen, DTCC managing director of Government Relations. “As the Parliament, Council and Commission continue debating Europe’s financial reform legislation, we want to share our experience and provide insight into the most effective ways to enhance transparency and mitigate risk in the system.”


Poland assumes E.U. presidency

The Parliament is expected to vote in September on its version of the final draft of the E.U.’s financial reform legislation governing the OTC derivatives market, known as European Market Infrastructure Regulation (EMIR). The final vote was postponed until September to give the Parliament additional time to gain insight into the European Council’s position on key issues.


With Poland having assumed the rotating presidency of the E.U. on July 1, it is expected to try to move aggressively to finalize the Council position by the Economic and Financial Affairs Council meeting of European Union finance ministers scheduled for October 4. This schedule could be complicated by many factors, including the Polish national elections scheduled for October 9.


“Poland has indicated that it is committed to using its presidency to complete all remaining Council work and set the stage for a trialogue of the three legislative bodies in late 2011 to finalize and pass EMIR,” Cohen said. “We have had good conversations with senior leaders in Poland on a wide range of financial reform issues and look forward to continuing this dialogue in the coming months.”


Warsaw meetings

DTCC officials organized a two-day visit to Warsaw for meetings with senior representatives of the Polish Securities Regulator, the Warsaw Stock Exchange and KDPW (the Polish central securities depository) and the recently created Polish central counterparty, the KDPW-CCP. DTCC also helped sponsor a conference and hosted a dinner in London for Polish officials.


The conference was arranged by the Polish Embassy and featured a full day of panel discussions with senior representatives of Poland, including Her Excellency Barbara Tuge-Ereinska, ambassador of the Republic of Poland to the U.K., and Jan Krzysztof Bielecki, former prime minister of Poland and senior financial policy advisor to the current administration.


The panels covered political and governmental issues that will likely be center stage during the Polish presidency and gave Polish representatives an opportunity to explain their views on a host of topics. Following the conference, DTCC hosted a dinner for the conference speakers and other Polish leaders to further build relationships and to have more indepth discussions on a range of topics.@


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