DOJ Seeks DTCC Info In Credit Default Swap Probe

DOJ Seeks DTCC Info In Credit Default Swap Probe - 7/21/2009

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DOJ Seeks DTCC Info In Credit Default Swap Probe
Julie Zeveloff

Securities Law 360. July 21, 2009
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EXCERPT: The Depository Trust & Clearing Corp. has reportedly received a request for information from the U.S. Department of Justice's Antitrust Division as part of an investigation into the credit default swap market. DTCC general counsel Larry Thompson told Dow Jones on Tuesday that the company was one of 15 to 20 firms that had received requests for information from the Justice Department in recent weeks. "Yes, we have, like a number of other firms, ... received subpoenas that are of a general nature," Thompson told Dow Jones. "Most of the information that is being requested is not information we have." Thompson said the company would fully cooperate with the DOJ, according to the news agency. The DTCC provides clearing, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. A representative for the company did not immediately respond to a request for comment Tuesday, and the Justice Department declined to comment. The department and London-based financial information services company Markit Group Ltd. both confirmed earlier in July the existence of an antitrust investigation into the CDS market, although neither offered details on the probe. According to various media reports, regulators want to know if the major banks that own Markit got special access to the firm's information or data, giving them an unfair advantage in the multitrillion-dollar CDS market. The DTCC, which operates the only repository for CDS, is currently working on a joint venture with Markit, Thompson told Dow Jones on Tuesday. He said that the Antitrust Division had signed off on those plans last week. Markit told the New York Times earlier in July that it intended to cooperate with authorities in the probe.

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