Michael C. Bodson, DTCC President and CEO, recently published two articles exploring the role of trade repositories in over-the-counter (OTC) derivatives reforms, and Christopher LaFleur, Representative Director of DTCC Data Repository (Japan) KK, published an article on this topic in a Japanese magazine.
These efforts are part of a larger initiative on the part of DTCC to provide industry thought leadership and drive positive change on key challenges facing market participants.
‘Sounder financial system’
One of Bodson’s articles, titled “New infrastructures for a sounder financial system” was published in the Banque de France’s Financial Stability Review (FSR). This bi-annual publication reviews developments affecting financial institutions, markets and their infrastructures from a cyclical and structural perspective. The theme of the 247-page issue is “OTC derivatives: new rules, new actors, new risks.” It includes contributions from many of the world’s leading authorities on this topic.
Bodson’s article demonstrates that “trade repositories (TRs), which provide transparency into the over‑the‑counter (OTC) derivatives markets, are a critical component of these efforts and arguably the most significant risk management innovation to emerge from the financial crisis of 2008.”
To coincide with the publication of the FSR, Banque de France organized a panel discussion in New York on April 22. In addition to Bodson, panelists were Senator Christopher Dodd; Paul Tucker, Deputy Governor of the Bank of England; Manmohan Singh, Senior Economist at the International Monetary Fund; and Craig Overlander, CEO of Société Générale Americas. The panel was moderated by Christian Noyer, Governor of the Banque de France.
Christopher LaFleur, Representative Director, DTCC Data Repository (Japan) KK
Leveraging the GTR
Bodson also wrote an article titled “The many sides of trade repositories,” in the 2013 edition of “How to Run a Bank,” an annual thought leadership publication by The Banker that serves as a reference guide for senior-level executives in financial services and central banks in more than 180 countries. The publication contains articles from top leaders in the financial industry.
Bodson’s article focuses on DTCC’s Global Trade Repository and how it can be leveraged in the future to reduce costs and risks for the industry while giving regulators a critical tool to enhance data analysis.
To read the articles, go to www.dtcc.com and click Thought Leadership.
An Asian perspective
LaFleur’s article, published in the Japanese-language Kinzai magazine, discusses how Japan is taking a leadership role in the management of systemic risk associated with OTC derivatives.
The article talks about the origins and benefits of trade repositories, Japan’s new repository and DTCC’s role in the OTC derivatives markets. It also provides an update on the status of reporting requirements globally and reviews some of the challenges to global transparency in this market.