CFTC Final Rule: Swap Data Recordkeeping and Reporting Requirements

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Gavel.png FINAL RULE: CFTC Final Rule on swap data reporting and recordkeeping approved at December 20, 2011 open meeting.
Dodd-Frank Timeline, Swap Data Recordkeeping and Reporting Requirements
Final Rule Issue Effective Date No-Action Relief, Part 43/45 No-Action Relief, Part 23
January 13, 2012 March 13, 2012 July 1, 2013 (IRS, CDS); Aug. 19 for other swaps June 30, 2013

On December 20, 2011, the Commodity Futures Trading Commission (CFTC) approved a final rulemaking on swap data recordkeeping and reporting requirements for swap dealers, major swap participants and other swap entities.[1]


At its November 19, 2010 open meeting, the commission issued its proposed statutory framework for swap entities, as mandated by Title VII of the Dodd-Frank Act. The proposed rules included:

  • Establishment of reporting and recordkeeping requirements and daily trading records requirements for swap dealers and major swap participants.
  • Swap dealers and major swap participants to ‘‘make such reports as are required by the Commission by rule or regulation regarding the transactions and positions and financial condition of the registered swap dealer or major swap participant.’’
  • Prescription of the books and records requirements of ‘‘all activities related to the business of swap dealers or major swap participants,’’
  • Daily maintenance of daily trading records of the swaps of the registered swap dealer and major swap participant and all related records, as well as a ‘‘complete audit trail for conducting comprehensive and accurate trade reconstructions.’’

"Swap Entites" include:

Final Rule, December 20, 2011

Summary of the rule:[2]

  • Swap entities must keep records throughout the existence of a swap and for five years following termination of the swap. SDRs must keep records throughout the existence of the swap and for fifteen years following termination of the swap.
  • For all swaps executed on a SEF or DCM, all required creation data is reported by the SEF or DCM.
  • For off-facility swaps accepted for clearing within the applicable deadline for reporting PET data, all required swap creation data is reported by the DCO.
  • For off facility swaps not cleared or not accepted for clearing within the applicable deadline, required swap creation data is reported by the reporting counterparty.
  • The final rulemaking calls for the use of three unique identifiers in connection with swap data reporting, including a Unique Swap Identifier (USI), a Legal Entity Identifier (LEI), and a Unique Product Identifier (UPI).
  • To prevent data fragmentation, all data for a swap must be reported to a single SDR, which is the SDR receiving the first data report.

No-Action Relief until 2013

The final rules initially called for a phase-in of reporting requirements. For credit and interest rate swaps, SEFs, DCMs, DCOs, SD/MSPs, and SDRs must comply on the later of July 16, 2012, or 60 days after the completion of swap entity definitions. Equity, foreign exchange, and commodity swaps would begin compliance within 90 days of the effective date for interest rate swaps. Non-SD/MSP counterparties will have an additional 90 days to comply. In October 2012, the CFTC Division of Swap Dealer and Intermediary Oversight (DSIO) issued no-action relief until April 1, 2013 for SD/MSPs from the Part 23 recordkeeping requirements set out in the internal business conduct standards. The areas covered under the relief include:

  • the requirement to record all oral communications relating to pre-execution swap trade information, including communications that ultimately lead to a related cash or forward transaction;
  • the requirement to maintain such record in a manner that is searchable by transaction and counterparty;
  • the requirement to timestamp pre-execution and execution trade information; and
  • the requirement to maintain swap records at the SD’s or MSP’s principal place of business or other designated principal office. [3]

On April 1, 2013, the no-action relief was extended until June 30, 2013, with the exception of the recording of oral transaction information. Such information is only subject to no-action relief if the landline is not located in one of the following geographic jurisdictions: United States, United Kingdom, Singapore, Hong Kong, Japan, Australia, Switzerland, and Canada.[4]

Additionally, on December 5, 2012, the CFTC issued no-action relief from the reporting requirements under Parts 43, 45 and 46, for equity, foreign exchange and other commodity swaps, in order to account for certain disruptions to the testing of swap data reporting systems caused by Hurricane Sandy. The relief expired on February 28, 2013 for Parts 43 and 45, and on March 30, 2013 for Part 46.

Related Documents: Fact Sheet, Q&A, and Rule Proposal as it Appeared in the Federal Register


  1. CFTC to Hold Open Meeting to Consider Two Final Rules. CFTC. Retrieved on December 20, 2011.
  2. Final Rule on Swap Data Recordkeeping and Reporting Requirements. CFTC. Retrieved on December 21, 2011.
  3. Corporate&Financial Weekly Digest. Katten Muchin Rosenman LLP. Retrieved on November 2, 2012.
  4. CFTC’s Division of Swap Dealer and Intermediary Oversight Issues Time-Limited No-Action Relief to Swap Dealers and Major Swap Participants Regarding Certain Recordkeeping Obligations. Katten Muchin Rosenman LLP. Retrieved on November 2, 2012.

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