Mar 14, 2013
• DTCC Connection
Testimony Before The House Committee on Agriculture “Examining Legislative Improvements to Title VII of The Dodd-Frank Act"
Larry Thompson, Managing Director and General Counsel
Thank you for holding today’s hearing to examine legislative improvements to Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). The Depository Trust & Clearing Corporation (DTCC) supports efforts to improve the effectiveness of this landmark legislation, particularly in areas related to regulators’ ability to access and utilize a global data set for systemic risk oversight and mitigation purposes.
DTCC strongly supports the Swap Data Repository and Clearinghouse Indemnification Correction Act of 2013 (H.R. 742), a bipartisan proposal co-sponsored by Congressman Bill Huizenga (R-MI), Congressman Rick Crawford (R-AR), Congressman Sean Patrick Maloney (D-NY), and Congresswoman Gwen Moore (D-WI). H.R. 742 will resolve issues surrounding Dodd-Frank’s indemnification provisions and confidentiality requirements.
My testimony today explains the Dodd-Frank indemnification provision, how it will fragment swap data, and how fragmentation will hinder regulators’ efforts to oversee a global market. I also provide information on how indemnification risks negating the existing global data sharing framework. Finally, I will address the Commodity Futures Trading Commission’s (CFTC) interpretive guidance, what it may mean for U.S. regulators, and explain why legislation is needed in this instance.
Download the Congressional Testimony: Testimony before the House Committee on Agriculture “Examining Legislative Improvements to Title VII of the Dodd-Frank Act"