The Hill News

I recently had the pleasure to speak at a conference hosted by the Financial Markets Law Committee in London on the state of derivatives regulation in the U.S. and Europe. Among the hot topics of discussion were concerns over the unintended consequences of the new Dodd-Frank rules and the extraterritorial reach of the law. I focused my remarks on how the indemnification provision in Dodd-Frank is Exhibit A for both of these concerns.

New rules in the U.S. and European will require cleared and uncleared swaps transactions to be reported to repositories, which are essentially giant databases that hold the underlying data on these trades. This information is essential for market transparency because when the data is consolidated in a central repository, such as DTCC’s Trade Information Warehouse for credit default swaps (CDS), regulators worldwide can see market positions and monitor concentrations of risk.

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