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Statement Regarding Repeal of Indemnification Requirement

Commissioner Michael S. Piwowar

Dec. 8, 2015

I applaud Congress and President Obama for repealing the Dodd-Frank Act’s security-based swap data repository indemnification requirement[1] as part of the recent transportation infrastructure bill.[2] This bipartisan, common-sense reform is long overdue. SEC staff publicly called for the removal of this provision in testimony before Congress in 2012,[3] and that call was subsequently joined by a number of market participants and regulators, including former SEC Chairman Elisse Walter[4] and at least one liberal advocacy group.[5]

The repeal of the indemnification requirement is one of many much-needed Dodd-Frank Act fixes identified by SEC staff as they have worked diligently to implement the statute. Just like the indemnification provision, these other Dodd-Frank Act requirements impair the SEC’s ability to effectively oversee the securities markets and fulfill our mission. Too often these modifications are rejected out of hand, based on overtly political and grossly misguided rhetoric asserting that any changes to the Dodd-Frank Act represent “weakening” of the statute. The repeal of the indemnification requirement exposes that false narrative and serves as an example of thoughtful legislation and coordination with regulators that should be emulated.

[1] Dodd-Frank Wall Street Reform and Consumer Protection Act § 763 (Pub. L. 111-203, H.R. 4173) (2010).

[2] Fixing America's Surface Transportation Act § 86001 (Pub. L. 114-[], H.R. 22) (2015).

[3] See Ethiopis Tafara, Testimony Concerning Indemnification of Security-Based Swap Data Repositories (Mar. 21, 2012), available at

[4] See Chairman Elisse Walter, Regulation of Cross-Border OTC Derivatives Activities: Finding the Middle Ground (Apr. 6, 2013), available at

[5] See Letter from Americans for Financial Reform (Apr. 29, 2015), available at

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