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Dr. Kay Swinburne, Member of the European Parliament

By Roland Kielman

As a global company, it’s essential for DTCC to continually engage with lawmakers and regulators across the globe,” said Michael Bodson, DTCC President and CEO. “We need to ensure our views and the views of our clients are being heard at all levels of financial policymaking circles, and we also need to listen to policymakers’ concerns and issues so that we can work with them and our clients in formulating solutions when appropriate.”

To achieve this objective, DTCC has a full-fledged Government Relations program that operates globally and includes hosting policy briefings for officials responsible for legislative initiatives that impact DTCC, its customers and the global financial industry at large. “The briefings are an opportunity for DTCC to exchange ideas and information with policymakers about mutually important issues,” said Bodson.

In September, the company hosted separate briefings for Member of the European Parliament Dr. Kay Swinburne, and more than a dozen staff members from the Senate Banking and Agriculture Committees. And with the 2012 U.S. general election right around the corner, DTCC plans to hold a second round of Congressional briefings in 2013 to complement the relationship-building efforts of the Government Relations team in Washington, D.C., as it begins its outreach to incoming Members of Congress.

Driving European financial reform
Dr. Swinburne, a Member of the European Parliament for Wales, is a prominent member of the Parliament’s Economic and Monetary Affairs Committee. She has played a key role in financial reform in Europe as a leading policymaker behind the European Market Infrastructure Regulation (EMIR) and the Markets in Financial Instruments Directive (MiFID), both of which have considerable impact on DTCC’s business portfolio in Europe.

Currently, Dr. Swinburne is responsible for driving a European legislative package known as the Central Securities Depository Regulation (CSDR), which, when implemented, will determine how CSDs are governed across the 27 Member States of the European Union.

During her visit to DTCC, Dr. Swinburne learned more about the company’s clearance and settlement businesses and shared insights on the CSDR. Her agenda included briefings with Susan Cosgrove, DTCC Managing Director and General Manager, Settlement and Asset Services, and Murray Pozmanter, DTCC Managing Director and General Manager, Clearing Services.

“Dr. Swinburne has extensive experience in the financial sector and understands the value of CSDs and the efficiencies they can bring to the industry,” Cosgrove said. “Many of the initiatives being worked on here at DTCC, such as exploring the feasibility of shortening the settlement cycle and the effort to fully dematerialize the securities market, are also being contemplated in the CSDR, so this was a great opportunity to find common ground and share our different perspectives on the future of clearance and settlement globally.”

A Welsh connection
Dr. Swinburne also received briefings on DTCC’s Global Trade Repository, the recent launch of the DTCC/SWIFT Commodity Futures Trading Commission Interim Compliance Indentifer (CICI) Utility and the company’s ongoing involvement in the development of a global legal entity identifier (LEI) solution. The discussion of LEIs held particular relevance to Dr. Swinburne.

“As a financial policymaker, Dr. Swinburne is keenly aware of the value of such a tool in helping to track exposure across financial entities and in monitoring systemic risk,” said Andrew Douglas, DTCC Vice President and Head of European Government Relations. “At the same time, as a Welsh MEP, I think it was also interesting for her to learn that so much of this work is actually being done in her political constituency at Wales-based Avox, the DTCC subsidiary that is playing a key role in the LEI and CICI initiatives.”

Program for U.S. lawmakers
DTCC also hosted a bipartisan group of staff members from the Senate Agriculture and Banking Committees, which are jointly responsible for oversight of the U.S. financial services industry.

The agenda included an overview of DTCC by Larry Thompson, DTCC Managing Director and General Counsel, a demonstration of DTCC’s Trade Information Warehouse and Global Trade Repository services by Marisol Collazo, DTCC Managing Director, Product Management, and a briefing on New York Portfolio Clearing (NYPC) by Alexander Broderick, NYPC CEO, and Joseph Benning, NYPC Chief Risk Officer.

DTCC’s Chief Executive Bodson shared his thoughts on global financial reform and fielded questions related to over-the-counter (OTC) derivatives policy. Dan Cohen, DTCC Managing Director and Head of Government Relations, gave the delegation an update on the regulatory landscape in the U.S., Europe and Asia.

Both sessions proved to be valuable opportunities for DTCC to drawn on its experiences in global financial policymaking to advocate regulatory harmonization.

“One of DTCC’s priorities is to help ensure that new regulatory regimes are harmonized across borders, and the best way to do this is to promote dialogue among policymakers,” Cohen said. “This briefing was an opportunity to share some of the things we are hearing from overseas policymakers, while gaining further insight into the priorities of lawmakers on Capitol Hill.”

Additional speakers included Michael Dunn, Chairman of DTCC Data Repository (U.S.) LLC, and former Commissioner of the Commodity Futures Trading Commission, and Brian Cartwright, Senior Advisor at Patomak Global Partners and former General Counsel of the Securities and Exchange Commission. The session with the former regulators gave Senate staffers a unique, first-hand perspective on the inner workings of the regulatory rulemaking process and the challenges of implementing the Dodd-Frank Act.

The day concluded with a trip to the New York Stock Exchange for a briefing on global market structure and a viewing of the closing bell.@