CFTC Final Rule: Registration and Regulation of Swap Data Repositories

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Gavel.png FINAL RULE: On August 4, 2011, the CFTC held an open meeting to discuss three final rulemakings under the Dodd-Frank Act. Among the rules approved at the meeting was a final rule regarding Part 49 of the Commodity Exchange Act - Swap Data Repositories.
Dodd-Frank Timeline, Registration and Regulation of Swap Data Repositories
Proposal Date Final Rule Issue Effective Date*
December 23, 2010 September 1, 2011 October 31, 2011

Summary of the final rule: The final rules adopt those of the proposed rulemaking on SDRs, with a few revisions to reflect public comments:

  • Provisional registration may continue "as warranted" and not be subject to sunset provisions.
  • SDR user agreements must be reasonably designed to prevent the invalidation of swap terms.
  • SDRs may not be required to confirm the accuracy of swap data received by a SEF, DCO, or certain other third-party providers. Data received directly from a swap dealer or major swap participant must be "affirmatively communicated."
  • Real-time reporting rules will be implemented subsequent to finalization of such rulemakings.
  • Regarding access to swap data, a regulator may only access data if acting within its jurisdiction and must execute a confidentiality agreement. Either party to a swap may access the data. SDRs may not make commercial use of real-time data prior to public dissemination.
  • Regarding governance and compliance, disclosure of Section 8 information is prohibited. The SDR must notify the commission within two days upon the removal of it chief compliance officer ("CCO").

[1]

Effective Date

The effective date for the final rule is October 31, 2011, although entities wishing apply for registration as SDRs will not yet be required to do so. Mandatory registration and compliance will not occur until the commission completes its rulemaking on swaps definitions and sets an implementation timetable.

For an overview of the duties and core principles of SDRs, please refer to the related documents below.

Related Documents: Fact Sheet, Q&A, and Federal Register Entry

References

  1. Final Rules Regarding Registration and Regulation of Swap Data Repositories. CFTC. Retrieved on August 4, 2011.

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