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DTCC Files Motion to Support CFTC Rules

  DTCC Files Motion to Support CFTC Rules

Business Wire

NEW YORK -- November 13, 2012

The Depository Trust & Clearing Corporation’s (DTCC) subsidiary, DTCC Data
Repository (U.S.) LLC (DDR), today announced it has filed a motion for leave
to intervene in the case brought by the Chicago Mercantile Exchange Inc. (CME)
against the Commodity Futures Trading Commission (CFTC). The documents were
filed on Nov. 12, 2012, in the U.S. District Court in Washington, D.C.

The motion is a formal request to the court asking that DDR, a U.S.-registered
swap data repository, be allowed to participate on the side of the CFTC in
defense of the CFTC's swap data reporting rules. The CME filed a lawsuit on
Nov. 8 seeking judicial review of and a permanent injunction against complying
with various rules designed to implement the Dodd-Frank Act’s swap data
reporting regulatory regime. CME officially objected to DDR’s request to enter
the lawsuit as an intervener. DDR seeks to intervene on the side of the CFTC,
named as a Defendant in the suit.

“We support the CFTC against the CME’s challenge, and will work to defend the
regulatory reporting regime that has been in place for over ten months,” said
Larry Thompson, General Counsel, DTCC. “The best way to ensure transparency in
the marketplace is to have all trades, cleared and uncleared, reported to a
swap data repository (SDR) and to ensure these SDRs provide open access to all
market participants. Counterparties need to make the decision regarding which
SDR they report to, and registered entities offering SDR services cannot
bundle those services together with non-SDR services.”

The timing of the CME’s lawsuit suggests that the exchange is motivated not by
concerns with the costs of reporting data on cleared swaps to SDRs, but rather
in response to swap counterparties choosing to report to SDRs other than CME’s
captive SDR. In response to CME’s suit, DTCC submitted a letter on Nov. 11 to
the CFTC, highlighting significant concerns with the potential negative
consequences of a judicial challenge or Commission action to remove the
necessity for a legal dispute.

The documents filed last night also include a memorandum in support of the
motion to intervene, outlining why DDR should be admitted to the case as a
party. In addition, a proposed Answer to the Complaint filed by CME is
included and responds to contentions made by CME in its complaint.

About DTCC

Through multiple operating facilities and data centers around the world, DTCC
and its subsidiary companies automate, centralize, and standardize the
processing of financial transactions for thousands of institutions worldwide.
With 40 years of experience, DTCC is the premier post-trade market
infrastructure for the global financial services industry, simplifying the
complexities of clearance, settlement, asset servicing, global data management
and information services for equities, corporate and municipal bonds,
government and mortgage-backed securities, derivatives, money market
instruments, syndicated loans, mutual funds, alternative investment products,
and insurance transactions. In 2011, DTCC’s subsidiaries processed securities
transactions valued at approximately US$1.7 quadrillion. Its depository
provides custody and asset servicing for securities issues from 122 countries
and territories valued at US$39.5 trillion. DTCC’s global OTC derivatives
trade repositories record more than US$500 trillion in gross notional value of
transactions made worldwide across multiple asset classes.

For more information, visit dtcc.com, and follow us on Twitter: @The_DTCC

Contact:

The Depository Trust & Clearing Corporation
Judy Inosanto, 646-477-2988
jinosanto@dtcc.com
or
Theresa Pagliocca, 202-286-2613
tpagliocca@dtcc.com