CFTC approved three final rules to revise its regulations for swap data reporting, dissemination, and public reporting requirements for market participants. These three final rules will be effective 60 days after their publication in the Federal Register. CFTC also approved a final rule that will permit derivatives clearing organizations organized outside the U.S. to be registered with CFTC. This rule shall be effective 30 days after its publication in the Federal Register.
Amendments to the Real-Time Public Reporting Requirements. CFTC approved a final rule that revises its regulations for real-time public reporting and dissemination requirements for swap data repositories, derivatives clearing organizations, swap execution facilities, designated contract markets, swap dealers, major swap participants, and swap counterparties that are neither swap dealers nor major swap participants. CFTC also made revisions that, among other things, will change the “block trade” definition and the block swap categories; update the block thresholds and cap sizes; and address issues that market participants have had in publicly reporting certain types of swaps.
Amendments to the Swap Data Recordkeeping and Reporting Requirements. CFTC approved a final rule that revises the regulations that establish swap data recordkeeping and reporting requirements for swap data repositories, derivatives clearing organizations, swap execution facilities, designated contract markets, swap dealers, major swap participants, and swap counterparties that are neither swap dealers nor major swap participants. This will, for the first time, give CFTC access to uncleared margin data, thus significantly improving its ability to monitor systemic risk. CFTC also finalized revisions that, among other things, streamline the requirements for reporting new swaps, define and adopt swap data elements that harmonize with international technical guidance, and reduce reporting burdens for reporting counterparties that are not swap dealers or major swap participants.
Amendments to Regulations on Certain Swap Data Repository and Data Reporting Requirements. CFTC approved amendments to parts 43, 45, and 49 of its regulations to improve the accuracy of data reported to, and maintained by, swap data repositories, and to provide enhanced and streamlined oversight of SDRs and data reporting generally. Among other changes, the amendments modify existing requirements for swap data repositories to establish policies and procedures to confirm the accuracy of swap data with both counterparties to a swap and require reporting counterparties to verify the accuracy of swap data pursuant to those swap data repository procedures. The amendments also update existing requirements related to corrections for data errors and certain provisions related to swap data repository governance.
Registration with Alternative Compliance for Non-U.S. Derivatives Clearing Organizations. CFTC approved the adoption of a rule that will permit derivatives clearing organizations organized outside the U.S. to be registered with CFTC, yet comply with the core principles applicable to derivatives clearing organizations as in the Commodity Exchange Act through compliance with their home country regulatory regimes, subject to certain conditions and limitations. CFTC also approved amendments to certain related delegation provisions in its regulations.
Effective Date: FR+60 Days/FR+30 Days
Keywords: Americas, US, Banking, Securities, Reporting, Dodd-Frank Act, Swap Data, Swaps, Swap Participants, Systemic Risk, Resolution, CFTC
Previous ArticleAPRA Consults on Alignment of Daily Liquidity Report for Banks
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.
FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.
EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.
ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.