The indemnification provision of the Dodd-Frank Act could undermine efforts to enhance transparency and mitigate systemic risk in the over-the-counter derivatives market, according to Larry Thompson, managing director and general counsel at the Depository Trust & Clearing Corp. Testifying before a House Agriculture subcommittee, Thompson said the provision could prevent “the exchange of information between regulators and frustrating efforts to identify and mitigate international financial risk and fragment regulatory oversight on a jurisdiction-by-jurisdiction basis.”
