CME Group, the world's leading and most diverse derivatives marketplace, announced that Executive Chairman Terry Duffy will appear before the U.S. Senate Banking, Housing and Urban Affairs Subcommittee on Securities, Insurance, and Investment Wednesday, May 25, to discuss implementing the Dodd-Frank clearing mandate.
"The critical role of clearing houses in guarding against systemic risk was appropriately a major focus of the Dodd-Frank Act," said Terry Duffy, CME Group Executive Chairman. "It is important to note that during and after the 2008 financial crisis the regulated futures markets and futures clearing houses operated flawlessly. Futures markets performed all of their essential functions without interruption and, despite failures of significant financial firms, our clearing house experienced no default and no customers on the futures side lost their collateral or were unable to immediately transfer positions and continue managing risk. Dodd-Frank was adopted to impose a new regulatory structure on a previously opaque and unregulated market — the OTC swaps market. The rules implementing the statute should be carefully crafted to preserve the flexibility that has enabled the regulated futures markets to operate as intended throughout the most challenging of economic times."
The hearing is scheduled for 9:30 a.m. Eastern time in the Dirksen Senate Office Building. Duffy's written testimony also will be available on www.cmegroup.com at that time.