Dunn to Lead U.S. SDR Development Effort
New York, May 9, 2012 – The Depository Trust & Clearing Corporation (DTCC) today announced that former Commodity Futures Trading Commissioner (CFTC) Michael V. Dunn will join the company, effective May 12, to serve as the non-executive Chairman of its U.S. Swap Data Repository (SDR). Dunn will report to DTCC President and CEO-elect Michael Bodson, recently named to succeed Donald F. Donahue in July.
Dunn will play an instrumental role in DTCC’s development of its U.S. SDR, ensuring open lines of communication with its clients, regulators and industry partners. In addition to his direct role in developing procedures and policies to ensure that the U.S. SDR is fully and effectively compliant with both the spirit and the letter of existing regulation, Dunn will work with global regulators to harmonize the various international reporting constituencies.
“This appointment is a key part of DTCC’s long-term strategy to effectively and seamlessly build our U.S. SDR capability,” said Bodson. "Commissioner Dunn is a seasoned regulator who has demonstrated a significant understanding of how our business works to reduce risk and increase transparency, especially during the last few years of market volatility and industry change.”
DTCC’s Executive Chairman of the Board, Robert Druskin, added: “Commissioner Dunn’s deep experience in Washington, D.C. – in Congress, at the Department of Agriculture and at the CFTC – has given him a strong understanding of the legislative and regulatory needs for comprehensive data and tools to evaluate and mitigate risk in the global financial markets. We have great confidence that he will be able to fully align our SDR development with the needs of both our regulators and our clients for the benefit of all.”
"I would like to express my sincere gratitude to Mike Bodson and the DTCC leadership team for offering me this opportunity,” added Commissioner Dunn. “During my tenure at the Commission, DTCC consistently demonstrated why it is entrusted by both the market and regulators as the critical link to accurate, detailed, transparent and aggregated data from the global financial markets. With the pending new requirements of the Dodd-Frank Act (DFA) – which are designed to provide effective transparency into the credit, interest, equity, foreign exchange and commodities derivative markets – my role is to add both a deeper regulatory insight into DTCC’s SDR development and its operational capabilities, so that the intent of the DFA and the needs of the financial markets are effectively met while retaining the use and availability of these critical financial tools.”
DTCC developed the first trade repository in the world for OTC credit derivatives, initially called the Trade Information Warehouse (TIW). TIW now houses trade information on more than 98% of all the OTC credit derivatives globally. DTCC then subsequently received industry approval, following a competitive process, to develop global trade repository services for equity, interest rate, commodity (with the European Federation of Energy Traders) and foreign exchange (with SWIFT) OTC markets.
As part of its support for the markets, DTCC also developed a separate, web-based regulatory portal that permits regulatory agencies from around the world, based on voluntary reporting agreements and supervisory authority entitlements, to obtain near real-time information on credit derivatives trading. That portal was later expanded to include OTC equity derivatives and interest rate derivatives, and will also be used for commodities and foreign exchange trading reporting beginning in the fourth quarter. Some 40 regulatory agencies globally currently use the portal for derivatives monitoring.
Michael V. Dunn, who also remains a Senior Policy Advisor at Patton Boggs LLP on a part-time basis, was confirmed by the U.S. Senate on November 21, 2004, as a Commissioner of the Commodity Futures Trading Commission. He was sworn in on December 6, 2004, to a term expiring June 19, 2006. On June 16, 2006 Commissioner Dunn was nominated by President Bush to a second term as Commissioner of the CFTC and confirmed by the Senate on August 3, 2006. In addition, Dunn served as acting chairman of the CFTC from Jan. 20, 2009 to May 19, 2009. During his tenure at the CFTC, Commissioner Dunn also served as Chairman and Designated Federal Official of the CFTC’s Agricultural Advisory Committee (AAC). He has had numerous appointments at the Department of Agriculture and on Capitol Hill. In total, he has held seven presidentially appointed positions involving federal regulations and policy. In 2011, the Futures Industry Association inducted Commissioner Dunn into its Futures Hall of Fame.
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC’s depository provides custody and asset servicing for almost 3.7 million securities issues from the United States and 121 other countries and territories, valued at US$39.5 trillion. In 2011, DTCC settled nearly US$1.7 quadrillion in securities transactions. DTCC has operating facilities and data centers in multiple locations in the United States and overseas. For more information, please visit www.dtcc.com.