Abstract: We present the first unquenched lattice QCD results for the bag parameters controlling the short distance contribution to D meson oscillations in the standard model and beyond. We have used the gauge configurations produced by the European Twisted Mass collaboration with N-f = 2 dynamical quarks, at four lattice spacings and light meson masses in the range 280-500 MeV. Renormalization is carried out nonperturbatively with the regularization-independent momentum subtraction method. The bag-parameter results have been used to constrain new physics effects in D-0 – (D) over bar (0) mixing, to put a lower bound to the generic new physics scale and to constrain off-diagonal squark mass terms for TeV-scale supersymmetry.