CFTC Finalizes Rules on Swap Data Reporting Requirements in US

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