Swap Data Regulation - Comment Letters

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Agricultural Swaps
Key Pages	Summary	Related Documents / Meetings	Key Dates
Agricultural Swaps Regulation Comment Letters White Papers Hearings & Testimony Agricultural Commodities Definition Regulation Swaps Regulation Swaps Definitions Regulation	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 agricultural swaps. Summary of the final rule, which will repeal and replace CEA Part 35, generally permitting the transaction of swaps in an agricultural commodity subject to all rules and regulations applicable to any other swap: New Part 35 will permit the transaction of swaps in an agricultural commodity subject to all provisions of the CEA – and any rule, regulation, or order thereunder – applicable to all other swaps. New Part 35 will also explicitly provide that swaps in an agricultural commodity may transact on a swap execution facility (SEF) and/or Designated Contract Market Regulation\|designated contract market]] (DCM) to the same extent that any other swap may transact on a SEF and/or DCM. At the August 4 meeting, the Commission only finalized the agricultural swaps piece of the proposed rules (repealing and replacing Part 35). The commodity options final rule was approved at a CFTC Open Meeting, April 18, 2012. more>	CFTC Final Rule: Agricultural Swaps CFTC Final Rule: Commodity Options Proposed Rule on Agricultural Swaps and Commodity Options Agricultural Commodities Definition Regulation Agricultural Swaps Regulation - ANPRM CFTC Open Meeting, April 18, 2012 CFTC Open Meeting, August 4, 2011 CFTC Open Meeting, July 7, 2011 CFTC Open Meeting, January 20, 2011 CFTC Open Meeting, October 19, 2010	Key dates vary. Click here to view all timelines.

Algorithmic Descriptions
Key Pages	Summary	Related Documents / Meetings	Key Dates
Algorithmic Descriptions Regulation Comment Letters White Papers Hearings & Testimony	On April 7, 2011, the CFTC and the SEC released a joint study on algorithmic derivatives descriptions. After conducting its analysis, which included meetings with industry leaders, regulators, and academics, as well as comments submitted by the public, the staff offered conclusions. more>	Algorithmic Descriptions Regulation - White Paper - CFTC/SEC: Joint Study on the Feasibility of Mandating Algorithmic Descriptions for Derivatives - April 7, 2011	Proposal Date: December 9, 2010 Comment Deadline: December 31, 2010 Study Issued: April 7, 2011

Asian Swaps
Key Pages	Summary	Related Documents / Meetings	Key Dates
Asian Swaps Regulation Comment Letters White Papers Hearings & Testimony Swaps Regulation	In 2010, Singapore (Singapore Exchange Limited), China (Shanghai Clearing House), and India (Clearing Corporation of India) launched their own central counterparty clearing houses (CCPs) in order to regulate the derivatives market. Japan, Hong Kong, Korea, and Taiwan have created task forces to study setting up CCPs. more>

Asset-Backed Securities
Key Pages	Summary	Related Documents / Meetings	Key Dates
Asset-Backed Securities Regulation Comment Letters White Papers Hearings & Testimony	At an open meeting on January 20, 2011, the SEC finalized rules requiring an issuer of asset-backed securities (ABS) to "perform a review of the assets underlying the ABS and disclose information relating to the review." Rules regarding shelf eligibility conditions for asset-backed securities were re-proposed on July 26, 2011. On October 13, 2010, the SEC adopted an interim final temporary Rule 13Aa-2T concerning the reporting of security-based swap data. Also introduced at this meeting was a new proposed rule to "mitigate conflicts of interest at security-based swap clearing agencies, security-based swap execution facilities, and national security exchanges that post or make available for trading security-based swaps." more>		Key dates vary. Click here to view all timelines.

Commodity Pool Operator
Key Pages	Summary	Related Documents / Meetings	Key Dates
Commodity Pool Operator Regulation Comment Letters White Papers Hearings & Testimony	Among the provisions of the Dodd-Frank Act are several requirements affecting commodity trading advisors (CTAs), commodity pool operators (CPOs) and investment advisors to private funds. The Securities and Exchange Commission submitted a proposed rule on systemic risk reporting requirements for private fund advisers including hedge funds, CPOs and CTAs in February 2011; the rules became finalized in October 2011. The Commodity Futures Trading Commission participated in the joint rulemaking with the SEC on the reporting requirements, and also proposed its own rules on certain compliance aspects for CPOs and CTAs. These rules were finalized in February 2012. more>	CFTC Final Rule: Registration and Compliance Obligations for Commodity Pool Operators and Commodity Trading Advisors SEC Final Rule: Reporting by Investment Advisers to Private Funds and Certain Commodity Pool Operators and Commodity Trading Advisors on Form PF Private Fund Systemic Risk Reporting Regulation Commodity Trading Advisor Regulation Hedge Fund Regulation Form PF	Final Rule Issue: February 9, 2012 Effective Date: July 2, 2012 Compliance Date: December 2012

Commodity Trading Advisor
Key Pages	Summary	Related Documents / Meetings	Key Dates
Commodity Trading Advisor Regulation Comment Letters White Papers Hearings & Testimony	Among the provisions of the Dodd-Frank Act are several requirements affecting commodity trading advisors (CTAs), commodity pool operators (CPOs) and investment advisors to private funds. The Securities and Exchange Commission submitted a proposed rule on systemic risk reporting requirements for private fund advisers including hedge funds, CPOs and CTAs in February 2011; the rules became finalized in October 2011. The Commodity Futures Trading Commission participated in the joint rulemaking with the SEC on the reporting requirements, and also proposed its own rules on certain compliance aspects for CPOs and CTAs. These rules were finalized in February 2012. more>	CFTC Open Meeting, January 26, 2011 SEC Open Meeting, January 25, 2011 Private Fund Systemic Risk Reporting Regulation Commodity Trading Advisor Regulation Hedge Fund Regulation Form PF Futures Commission Merchant Regulation	Final Rule Issue: February 9, 2012 Effective Date: July 2, 2012 Compliance Date: December 2012

Derivatives Clearing Organizations
Key Pages	Summary	Related Documents / Meetings	Key Dates
Derivatives Clearing Organizations Regulation Comment Letters White Papers Hearings & Testimony	The CFTC approved its first set of final DCO rules related to the Dodd-Frank Act at its October 18, 2011 open meeting. The final rules cover these five proposed rules: Requirements for Processing, Clearing, and Transfer of Customer Positions Risk Management Requirements for Derivatives Clearing Organizations General Regulations and Derivatives Clearing Organizations Information Management Requirements for Derivatives Clearing Organizations Financial Resources Requirements for Derivatives Clearing Organizations more>	CFTC Final Rule: Process for Review of Swaps for Mandatory Clearing CFTC Final Rule: Derivatives Clearing Organization General Provisions and Core Principles CFTC Open Meeting, July 19, 2011 CFTC Open Meeting, October 18, 2011 Swap Entities Regulation Swaps Review Regulation Chart: Reporting, Recordkeeping, Public Information and Information Sharing Requirements for DCOs	Key dates vary. Click here to view all timelines.

Designated Contract Market
Key Pages	Summary	Related Documents / Meetings	Key Dates
Designated Contract Market Regulation Comment Letters White Papers Hearings & Testimony Swaps Definitions Regulation Swap Execution Facilities Regulation	At an open meeting on May 10, 2012, the CFTC finalized rules, guidance and acceptable practices under Dodd-Frank Act that, among other things, amend Section 5 of the Commodity Exchange Act ("CEA") concerning designation and operation of contract markets, and add a new CEA Section 2(h)(8) to include the listing, trading and execution of swaps on designated contract markets. The rules were originally proposed on December 1, 2010. more>	CFTC Final Rule: Provisions Common to Registered Entities Federal Register: Core Principles and Other Requirements for Designated Contracts Markets CFTC Open Meeting, May 10, 2012 CFTC Proposed Rule: Process for a Designated Contract Market or Swap Execution Facility to Make a Swap Available to Trade	Key dates vary. Click here to view all timelines.

Disruptive Trading Practices
Key Pages	Summary	Related Documents / Meetings	Key Dates
Disruptive Trading Practices Regulation Comment Letters White Papers Hearings & Testimony	At an open meeting on February 24, 2011, the CFTC proposed an interpretive order regarding disruptive trading practices. The proposal defines as disruptive any practice that: violates bids or offers; demonstrates intentional or reckless disregard for orderly execution; or is of the character of, or is commonly known to the trade as, “spoofing” (bidding or offering with the intent to cancel the bid or offer before execution). more>	CFTC Open Meeting, October 26, 2010 CFTC Open Meeting, February 24, 2011 Federal Register: Proposed Interpretive Order on Disruptive Trading Practices Market Manipulation Regulation	Proposal Date: March 18, 2011 Comment Deadline: May 17, 2011 Final Rule Issue: First Qtr. 2012

Dodd-Frank Act
Key Pages	Summary	Related Documents / Meetings	Key Dates
Dodd-Frank Act Comment Letters White Papers Hearings & Testimony	The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), named after Senate Banking Committee Chairman Chris Dodd and Chairman of the House Financial Services Committee Barney Frank, was signed into law by President Barack Obama on July 21, 2010. more>	Goldman Sachs Global Markets Institute: Effective Regulation, Parts 1-5 SEC: Organizational Study and Reform CFTC Office of the Inspector General - Dodd-Frank Cost-benefit Analyses - April 15, 2011 FSOC - White Papers	Proposal Date: December 2, 2009 Passed U.S. House of Representatives: December 11, 2009 Passed U.S. Senate: May 20, 2010 Final Law: July 21, 2010

End-User Exception to Mandatory Clearing
Key Pages	Summary	Related Documents / Meetings	Key Dates
End-User Exception to Mandatory Clearing Comment Letters White Papers Hearings & Testimony Interpretive Guidance on Product Definitions - Summary Table	The Dodd-Frank Act requires, among other things, that the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC), create and implement rules regarding mandatory clearing of swaps transactions. A major topic of contention has been whether end-users should be granted an exception to the Dodd-Frank requirement for mandatory clearing of swap transactions. more>	Swaps Review Regulation SEC Open Meeting, December 15, 2010 CFTC Open Meeting, December 9, 2010 Federal Register: End-User Exception to Mandatory Clearing of Swaps Federal Register: End-User Exception to Mandatory Clearing of Security-Based Swaps	Key dates vary. Click here to view all timelines.

European Swaps
Key Pages	Summary	Related Documents / Meetings	Key Dates
European Swaps Regulation Comment Letters White Papers Hearings & Testimony Swaps Regulation	The major institutions in charge of designing and implementing swaps regulation in Europe are the Financial Services Authority (FSA), International Organization of Securities Commissions (IOSCO), Futures and Options Association (FOA), the European Commission, and the European Securities and Markets Authority (ESMA). more>	European Credit Default Swap Regulation FSA (UK) European Securities and Markets Authority Swaps Regulation - White Paper - European Central Bank - Credit Default Swaps and Counterparty Risk - August 2009 Corporate Governance Regulation European Securities Regulation - UCITS - July 9, 2009

Executive Compensation
Key Pages	Summary	Related Documents / Meetings	Key Dates
Executive Compensation Regulation Comment Letters White Papers Hearings & Testimony	On March 2, 2011, the Securities and Exchange Commission (SEC) proposed rules regarding incentive-based compensation arrangements under the Dodd-Frank Act. The regulation would require incentive-based compensation annual reports, enforce new compliance procedures and add a threshold of $50 billion for certain institutions. Final rules concerning shareholder approval of executive compensation and golden parachute compensation were adopted on January 25, 2011. more>	SEC Open Meeting, January 25, 2011 SEC Open Meeting, March 2, 2011 SEC Open Meeting, March 30, 2011 Shareholder Approval of Executive Compensation and Golden Parachute Compensation Listing Standards for Compensation Committees Incentive-Based Compensation Arrangements	Key dates vary. Click here to view all timelines.

Futures Commission Merchant
Key Pages	Summary	Related Documents / Meetings	Key Dates
Futures Commission Merchant Regulation Comment Letters White Papers Hearings & Testimony Comparison Chart – Regulation 1.25, Current vs Proposed Changes	In accordance with Title VII of the Dodd-Frank Act, the CFTC has issued several rulemakings and proposed rule changes affecting or involving activities of futures commission merchants (FCMs). A final rule regarding the investment of customer funds was approved at the commission's December 5, 2011 open meeting. Additionally, at its January 11, 2012 open meeting, the CFTC approved its final rules on the protection of cleared swaps customer collateral in the case of a broker bankruptcy. Finally, at its February 23, 2012 open meeting, the CFTC approved its final rules on certain internal business conduct standards for swap dealers, major swap participants and futures commission merchants. These rules include conflicts of interest and compliance responsibilities. more>	CFTC Open Meeting, April 27, 2011 CFTC Open Meeting, December 5, 2011 CFTC Final Rule: Investment of Customer Funds by Futures Commission Merchants and Derivatives Clearing Organizations A Layman's Guide to Regulation 1.25 Federal Register:Required Compliance Policies Federal Register: Protection of Cleared Swaps Customers Before and After Commodity Broker Bankruptcies Protection of Cleared Swaps Customer Contracts and Collateral; Conforming Amendments to the Commodity Broker Bankruptcy Provisions	Key dates vary. Click here to view all timelines

FX Swaps
Key Pages	Summary	Related Documents / Meetings	Key Dates
FX Swaps Regulation Comment Letters White Papers Hearings & Testimony	The Dodd-Frank Act requires most swaps to be traded on an exchange or on a similar system and then guaranteed by a clearinghouse, where the parties would be required to post collateral. However, the act allows the Secretary of the Treasury to make a final determination as to whether foreign exchange transactions should be granted an exemption from the Dodd-Frank definition of swaps. more>	Off-Exchange Forex Regulation	Proposal Date: October 28, 2010 Comment Deadline: November 29, 2010 Proposed Determination: April 29, 2011 Final Rule Issue: July 2011

Hedge Funds
Key Pages	Summary	Related Documents / Meetings	Key Dates
Hedge Fund Regulation Comment Letters White Papers Hearings & Testimony Investment Advisers Regulation Private Fund Systemic Risk Reporting Regulation Commodity Pool Operator Regulation Family Office Definition	As mandated by Title IV of the Dodd-Frank Act, the SEC and CFTC have been tasked with creating a framework for the registration and systemic risk mitigation of hedge funds and other private funds. Additionally, the SEC is charged with rulemaking authority for Investment Advisers, and exemption thresholds for family offices, accredited investors, and venture capital funds. Information from systemically significant private funds will be shared with regulators, and the Financial Stability Oversight Council (FSOC). As of December 2011, five rulemakings have been finalized, including: Implementing Amendments to the Investment Advisers Act - Hedge Fund Registration, Registration and Reporting Exemptions, SEC final rule on private fund systemic risk reporting, and Family Offices Net Worth Standard for Accredited Investors more>	SEC Final Rule: Exemptions for Advisers to Venture Capital Funds, Private Fund Advisers With Less Than $150 Million in Assets Under Management, and Foreign Private Advisers SEC Final Rule: Rules Implementing Amendments to the Investment Advisers Act of 1940 SEC Final Rule: Family Offices SEC Final Rule: Net Worth Standard for Accredited Investors SEC Final Rule: Reporting by Investment Advisers to Private Funds and Certain Commodity Pool Operators and Commodity Trading Advisors on Form PF SEC Open Meeting, June 22, 2011 SEC Open Meeting, October 26, 2011 Form PF	Key dates vary. Click here to view all timelines.

High Frequency Trading
Key Pages	Summary	Related Documents / Meetings	Key Dates
High Frequency Trading Regulation Comment Letters White Papers Hearings & Testimony	In the wake of the "Flash Crash" of May 6, 2010, the SEC and CFTC formed a joint committee to study emerging regulatory issues. Its conclusions and recommendations, which were released on February 18, 2011, included several areas addressing HFT, including: the implementation of minimum quoting requirements by market makers; restrictions on co-location and direct access; liquidity rules such as penalties for rapid order cancellation; and a request for further study and potential regulatory changes. more>	CFTC Open Meeting, October 26, 2010 CFTC Open Meeting, February 24, 2011 Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues - White Paper - Recommendations Regarding Regulatory Response to the Market Events of May 6, 2010 - February 18, 2011 Disruptive Trading Practices Regulation	Proposal Date: March 18, 2011 Comment Deadline: May 17, 2011 Final Rule Issue: First Qtr. 2012

Investment Advisers
Key Pages	Summary	Related Documents / Meetings	Key Dates
Investment Advisers Regulation Comment Letters White Papers Hearings & Testimony	The SEC meeting on June 22, 2011 finalized rules concerning amendments to the Investment Advisers Act of 1940, as well as registration exemptions for reporting by certain investment advisers. An SEC notice concerning investment adviser performance compensation regulation was published on May 10, 2011. The comment deadline for this proposal is July 11, 2011. more>		Key dates vary. Click here to view all timelines.

Margin and Capital Requirements
Key Pages	Summary	Related Documents / Meetings	Key Dates
Covered Swap Entities Regulation - Margin and Capital Requirements Covered Swap Entities Regulation - Comment Letters Swap Dealers and Major Swap Participants Regulation Swap Dealers and Major Swap Participants Regulation - Capital Requirements - Comment Letters Swap Dealers and Major Swap Participants Regulation - Margin Requirements for Uncleared Swaps - Comment Letters	One of the mandates of Title I of the Dodd-Frank Act is that the appropriate regulators develop a framework for swap dealers and major swap participants, which would include the setting of margin and capital requirements. Entities under the jurisdiction of a prudential regulator such as the FDIC would follow its rules. All other swaps would be under the jurisdiction of the CFTC and SEC. For more information, see the summary table of swaps definitions. more>	CFTC Open Meeting, April 12, 2011 CFTC Open Meeting, April 27, 2011 Federal Register: Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants Capital Requirements of Swap Dealers and Major Swap Participants Prudential Regulators	Proposal Date: April 12, 2011 Comment Deadline: July 11, 2011 Final Rule Issue: First Qtr. 2012

Market Manipulation
Key Pages	Summary	Related Documents / Meetings	Key Dates
Market Manipulation Regulation Comment Letters White Papers Hearings & Testimony Disruptive Trading Practices Regulation	Section 753 of the Dodd-Frank Act gives the Commodity Futures Trading Commission (CFTC) and U.S. Securities and Exchange Commission (SEC) the authority to monitor and enforce "manipulative and deceptive" practices in the swaps, security-based swaps, and commodities markets. The rules are intended to mirror the SEC's Rule 10b-5, a powerful regulation used to combat fraud and manipulation in securities markets. more>	CFTC Final Rule: Anti-Manipulation and Anti-Fraud High Frequency Trading Regulation CFTC Open Meeting, October 26, 2010 CFTC Open Meeting, July 7, 2011 SEC Open Meeting, November 3, 2010	Proposal Date: March 18, 2011 Final Rule Issued: July 14, 2011 Effective Date August 15, 2011

Off-Exchange Forex
Key Pages	Summary	Related Documents / Meetings	Key Dates
Off-Exchange Forex Regulation Comment Letters White Papers Hearings & Testimony Futures Commission Merchant Regulation	On September 10, 2010, the CFTC approved its final rules regarding off-exchange retail foreign exchange transactions. Although the rulemaking pre-dated the Dodd-Frank Act, once the Act was signed in July, 2010, the commission's forex rules, along with the forex rules of other regulatory authorities, became a part of Dodd-Frank. Under Dodd-Frank, the CFTC will have jurisdiction over retail foreign exchange transactions, except in the case of entities which fall under the authority of one of the following regulatory agencies ("Prudential Regulators"): Office of the Comptroller of the Currency, Treasury (OCC); Board of Governors of the Federal Reserve System (Fed); Federal Deposit Insurance Corporation (FDIC); Farm Credit Administration (FCA); and Federal Housing Finance Agency (FHFA) The Act requires that such rules include appropriate requirements with respect to disclosure, record keeping, capital and margin, reporting, business conduct, documentation, and any other standards or requirements as Federal regulatory agencies shall determine to be necessary. more>	FX Swaps Regulation	Key dates vary. Click here to view all timelines.

Orderly Liquidation Authority
Key Pages	Summary	Related Documents / Meetings	Key Dates
Orderly Liquidation Authority Regulation Comment Letters White Papers Hearings & Testimony	In accordance with Title II of the Dodd-Frank Act, the FDIC is required to establish rules regarding the orderly liquidation in case of a default of a "covered financial company," which is defined as financial company that poses significant risk to the financial stability of the United States. The Act outlines the process for the orderly liquidation of such a covered financial company following the FDIC’s appointment as receiver and provides for additional implementation of the orderly liquidation authority (OLA) by rulemaking. more>	CFTC Open Meeting, January 13, 2011 CFTC Open Meeting, January 20, 2011 FSOC Proposed Rule: Assessment of Fees on Large Bank Holding Companies and Nonbank Financial Companies Supervised by the Federal Reserve Board to Cover the Expenses of the Financial Research Fund Federal Register: Orderly Liquidation Termination Provision in Swap Trading Relationship Documentation for Swap Dealers and Major Swap Participants FDIC Final Rule: Certain Orderly Liquidation Authority Provisions under Dodd-Frank Act FDIC Proposed Rule: Calculation of Maximum Obligation Limitation	Key Dates vary. Click here to view all timelines

Position Limits
Key Pages	Summary	Related Documents / Meetings	Key Dates
Position Limits Regulation Comment Letters White Papers Hearings & Testimony	Position limits are intended to protect futures markets from excessive speculation that could cause unreasonable or unwarranted price fluctuations and are sometimes referred to as "speculative position limits", or "speculative limits". The Commodity Exchange Act (CEA) authorized the CFTC to impose limits on the size of speculative positions in futures markets. more>	CFTC Final Rule: Position Limits for Futures and Swaps CFTC Open Meeting, December 16, 2010 CFTC Open Meeting, January 13, 2011 CFTC Open Meeting, October 18, 2011 Federal Register: Position Limits for Derivatives CFTC Final Rule: Large Trader Reporting Federal Register: Position Reports for Physical Commodity Swaps	Interim and Final Rule: November 18, 2011 Comment Deadline: January 17, 2012 Effective Date: January 17, 2012

Swap Data
Key Pages	Summary	Related Documents / Meetings	Key Dates
Swap Data Regulation Comment Letters White Papers Hearings & Testimony	Among the mandates of the Dodd-Frank Act are requirements that regulatory agencies such as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) create a framework for the transmission, submission, and storage of swap data. As of December 20, 2011, the CFTC had finalized three swap data rulemakings - Registration and Regulation of Swap Data Repositories, Swap Data Recordkeeping and Reporting Requirements and Real-Time Public Reporting of Swap Transaction Data. The SEC has issued two rule proposals regarding the security-based swap data repositories (SDRs) and the reporting and dissemination of swap data through Regulation SBSR. Neither rulemaking has been finalized. more>	CFTC Final Rule: Registration and Regulation of Swap Data Repositories CFTC Open Meeting, December 20, 2011 CFTC Open Meeting, August 4, 2011 Swap Execution Facilities Regulation CFTC Final Rule: Real-Time Public Reporting of Swap Transaction Data CFTC Final Rule: Swap Data Recordkeeping and Reporting Requirements CFTC Proposed Interpretive Statement: Swap Data Repository Confidentiality and Indemnification	Key dates vary. Click here to view all timelines.

Swap Dealers and Major Swap Participants
Key Pages	Summary	Related Documents / Meetings	Key Dates
Swap Dealers and Major Swap Participants Regulation Comment Letters White Papers Hearings & Testimony	The CFTC has issued rule proposals under Dodd-Frank regarding swap dealers (SDs) and major swap participants (MSPs) at six different meetings in 2010 and 2011. The issues discussed were: duties; registration; conflicts of interest; required compliance policies; reporting and recordkeeping; further defining “swap dealer,” “major swap participant” and “eligible contract participant”; business conduct standards, confirmation; confirmation, reconciliation and compression; swap trading relationship documentation; orderly liquidation termination; and margin requirements for uncleared swaps. In late 2011, the commission began issuing final rules pertaining to SD/MSPs. Topics for which a final rulemaking has been issued can be found in the alert box at the top of the page. Summaries and links can also be found below. more>	CFTC Open Meeting, November 10, 2010 CFTC Open Meeting, December 1, 2010 CFTC Open Meeting, December 9, 2010 CFTC Open Meeting, December 16, 2010 CFTC Open Meeting, January 13, 2011 CFTC Open Meeting, January 20, 2011 CFTC Office of the Inspector General - Dodd-Frank Cost-benefit Analyses - April 15, 2011 Definitions of Swap-Related Terms Registered Swap Entities	Key dates vary. Click here to view all timelines.

Swap Entities
Key Pages	Summary	Related Documents / Meetings	Key Dates
Swap Entities Regulation Comment Letters White Papers Hearings & Testimony Swap Execution Facilities Regulation Derivatives Clearing Organizations Regulation Designated Contract Market Regulation Covered Swap Entities Regulation - Margin and Capital Requirements	Swaps regulation is part of the Dodd-Frank Act and has fallen under the jurisdiction of various regulatory agencies such as the CFTC and the SEC. Other agencies are also addressing swap execution facilities such as the Financial Services Authority (FSA) and European Commission. Among the proposed rules and rule changes, many are written to specifically address a certain type of swap entity, such as a swap execution facility (SEF), designated contract market (DCM), derivatives clearing organization (DCO) or swap data repository (SDR). more>	SEC Open Meeting, October 13, 2010 CFTC Open Meeting, December 9, 2010 CFTC Open Meeting, April 27, 2011 CFTC Open Meeting, July 19, 2011 CFTC Final Rule: Provisions Common to Registered Entities Governance Requirements Federal Register: Clearing Agency Standards for Operation and Governance	Key dates vary. Click here to view all timelines.

Swap Execution Facilities
Key Pages	Summary	Related Documents / Meetings	Key Dates
Swap Execution Facilities Regulation Comment Letters White Papers Hearings & Testimony	Swap execution facilities (SEFs) were given life by the Dodd-Frank Act, which requires over-the counter (OTC) swaps to be cleared and traded on this new type of regulated platform. Any swap that clears must trade on an exchange or an SEF. This regulation has fallen under the jurisdiction of various regulatory agencies such as the CFTC and the SEC. Other agencies are also addressing swaps execution facilities such as the Financial Services Authority (FSA) and European Commission. more>	Federal Register: Core Principles and Other Requirements for Swap Execution Facilities CFTC Open Meeting, December 9, 2010 CFTC Open Meeting, December 16, 2010 CFTC Open Meeting, December 5, 2011 CFTC Proposed Rule: Process for a Designated Contract Market or Swap Execution Facility to Make a Swap Available to Trade Swap Execution Facilities - A Comparison of CFTC and SEC Rule Proposals Registered Swap Entities	Key dates vary. Click here to view all timelines.

Swaps Definitions
Key Pages	Summary	Related Documents / Meetings	Key Dates
Swaps Definitions Regulation Comment Letters White Papers Hearings & Testimony	In accordance with the Dodd-Frank Act, the CFTC and the SEC, in consultation with the Board of Governors of the Federal Reserve System, have proposed rules and interpretative guidance under the Commodity Exchange Act (CEA) and the Securities Exchange Act of 1934 to further define the terms "swap dealer," "security-based swap dealer," "major swap participant," "major security-based swap participant," and "eligible contract participant." Under Dodd-Frank, the SEC will have jurisdiction over "security-based" swaps, and the CFTC will have jurisdiction over all other swaps, except for a category known as "mixed swaps" which may have both security-based and non-security-based components. For mixed swaps, the two agencies will have joint oversight responsibilities. Swaps definitions fall into two categories. "Entity definitions" detail which firms and individuals fall are considered to be subject to dealer and swap participant rules. "Product definitions" detail the types of transactions that are considered to be swaps, security-based swaps, and mixed swaps, and also which products may be exempt from agency oversight. more>	CFTC/SEC Joint Final Rule on Swap Entity Definitions CFTC Open Meeting, April 18, 2012 SEC Open Meeting, April 18, 2012 Swaps Definitions Regulation - Interpretive Guidance on Product Definitions - Summary Table [[Federal Register: Further Definition of “Swap Dealer,” “Security-Based Dealer,” “Major Swap Participant,” “Major Security-Based Swap Participant” and “Eligible Contract Participant.” Swaps Definitions Regulation - Stable Value Contracts	Proposal Date: December 22, 2010 Comment Deadline: February 22, 2011 Final Rule Issue: April 2012

Swaps Review
Key Pages	Summary	Related Documents / Meetings	Key Dates
Swaps Review Regulation Comment Letters White Papers Hearings & Testimony Swaps Regulation - End-User Exception to Mandatory Clearing	One of the provisions of the Dodd-Frank Act is an amendment to the Commodity Exchange Act that would prohibit swap transactions unless it were submitted to a Derivatives Clearing Organization (DCO) for clearing, or if the swap met one of the requirements for exemption. In separate meetings, the SEC and CFTC issued proposed rules regarding the process for review of swaps for mandatory clearing. more>	SEC Open Meeting, December 15, 2010 CFTC Open Meeting, July 19, 2011 CFTC Final Rule: Process for Review of Swaps for Mandatory Clearing Swaps Definitions Regulation - Interpretive Guidance on Product Definitions - Summary Table	Proposal Date: November 2, 2010 Final Rule Issue: July 26, 2011 Effective Date: September 26, 2011

Volcker Rule
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Volcker Rule Comment Letters Financial Stability Oversight Council	On October 12, 2011, the U.S. Securities and Exchange Commission (SEC), the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, and the Office of the Comptroller of the Currency issued its proposed regulation to implement Section 619 of the Dodd-Frank Act, the so-called "Volcker Rule," which would prohibit banking entities from engaging in proprietary trading of derivatives and limit the ownership or sponsorship of hedge funds and other private funds to three percent of Tier 1 capital. The document proposes which entities will be subject to the prohibitions, and explains the types of financial transactions that will be exempt from the bans. The proposal seeks comment from the public and market participants on 394 questions on such topics as definitions of banking entities, exemptions, types of activities covered under the rule, and compliance considerations. The deadline for public comment was originally set for January 13, 2012, but on December 23, 2011, the House Financial Services Committee requested a 30-day extension to February 13, 2012. The Dodd-Frank Act mandates that the rule become effective on July 21, 2012, followed by a two-year compliance transition. more>	SEC Open Meeting, October 12, 2011 Commentary: Mining the Volcker Rule Hearing for Nuggets, January 18, 2012 CFTC Proposed Rule: Regarding Prohibitions and Restrictions on Proprietary Trading (Volcker Rule) FSOC - White Paper - Study & Recommendations Regarding Concentration Limits on Large Financial Companies - January 2011 Dodd-Frank Act - White Paper - J.P.Morgan Cazenove: Regulatory Arbitrage series: OW European over US IBs	Proposal Date: October 12, 2011 Comment Deadline: February 13, 2012 Final Rule Issue: July 2012

Whistleblower Provisions
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Whistleblower Provisions Regulation Comment Letters White Papers Hearings & Testimony	At an open meeting on August 4, 2011, the CFTC approved its final rule on its whistleblower program. The rule maintains the “discretionary power” of the Commission with regard to the amount awarded to informants. At an open meeting on May 25, 2011, the SEC issued its final rule under which the whistleblower, in order to be eligible, must "voluntarily provide the SEC with original information that leads to the successful enforcement by the SEC of a federal court or administrative action in which the SEC obtains monetary sanctions totaling more than $1 million.” more>	CFTC Open Meeting, August 4, 2011 SEC Open Meeting, May 25, 2011 CFTC Final Rule: Whistleblower Incentives and Protection SEC Final Rule: Securities Whistleblower Incentives and Protections Whistleblower Provisions Regulation Proposed Rules - CFTC and SEC Shareholder Approval of Executive Compensation and Golden Parachute Compensation	Key dates vary. Click here to view all timelines.

Organizations

European Securities and Markets Authority (ESMA)
Key Pages	Summary	Related Documents	Meetings
ESMA	The European Securities and Markets Authority (ESMA) is an independent European Union regulatory agency that oversees European securities trading across all of the EU member states. ESMA was established on January 1, 2011, and replaces the Committee of European Securities Regulators (CESR). Steven Maijoor is currently the chairman of the European Securities and Markets Authority (ESMA); he was named to the position on January 13, 2011. more>	Regulation Establishing ESMA

Federal Deposit Insurance Corporation (FDIC)
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FDIC Orderly Liquidation Authority Regulation	The Federal Deposit Insurance Corporation (FDIC) was created by Congress though the Glass-Steagall Act in 1933 in response the frequent bank failures of the 1920s and early 1930s. As an independent agency, the FDIC is charged with maintaining stability in the U.S. financial system by insuring deposits, supervising financial institutions and managing receiverships. Additionally, one of the provisions of the Dodd-Frank Act required the FDIC to establish rules regarding the orderly liquidation of any systemically important financial company encountering a default. more>	Orderly Liquidation Authority Regulation - Comment Letters Federal Register: Orderly Liquidation Termination Provision in Swap Trading Relationship Documentation for Swap Dealers and Major Swap Participants Off-Exchange Forex Regulation Off-Exchange Forex Regulation - Comment Letters Swap Dealers and Major Swap Participants Regulation - Swap Trading Relationship Documentation Requirements - Comment Letters

Financial Stability Oversight Council (FSOC)
Key Pages	Summary	Related Documents	Meetings
FSOC FSOC White Papers	As established under Title I of the Dodd-Frank Act, the Financial Stability Oversight Council (FSOC) provides, for the first time, comprehensive monitoring to ensure the stability of our nation's financial system. It was passed by the House Financial Services Committee on December 2, 2009 to put an end to “too big to fail” financial firms. It was created as a nine-member council, led by the Treasury secretary, to look out for systemic risks. The FSOC will subject to Fed oversight any nonbank financial companies whose financial distress would pose risks to the financial stability of the United States.more>	Macroeconomic Effects of Risk Retention Requirements Study & Recommendations Regarding Concentration Limits on Large Financial Companies Study & Recommendations on Prohibitions on Proprietary Trading & Certain Relationships with Hedge Funds & Private Equity Funds	October 1, 2010 November 23, 2010 January 18, 2011 March 17, 2011

Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues
Key Pages	Summary	Related Documents	Meetings
Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues SEC CFTC	The Advisory Committee on Emerging Regulatory Issues was created on May 11, 2010, five days after the so-called "flash crash" on May 6, 2010, when a single trader mistakenly entered a "sell" order of CME Group's e-Mini S&P 500 futures worth $4.1 billion. The order triggered a frenzy of high frequency trading activity that briefly saw the Dow Jones Industrial Average break 700 points in a matter of minutes. While the market stabilized quickly once the error was discovered, the incident highlighted the potential liquidity problems associated with high speed trading. more>	White Papers Recommendations Regarding Regulatory Response to the Market Events of May 6, 2010	May 24, 2010 June 22, 2010 August 11, 2010 November 5, 2010 February 18, 2011

U.K. Financial Services Authority (FSA)
Key Pages	Summary	Related Documents	Meetings
FSA	The Financial Services Authority (FSA) is an independent non-governmental body that regulates the financial services industry in the UK. Established by Gordon Brown in 1997 when the Labour party came into power, the FSA was granted statutory powers by the Financial Services and Markets Act of 2000. The FSA is accountable to Treasury Ministers and, by extension, Parliament. The FSA receives no government funding and is financed by the firms it regulates. more>

U.S. Consumer Financial Protection Bureau (CFPB)
Key Pages	Summary	Related Documents	Meetings
CFPB Dodd-Frank Act	Established by Title X of the Dodd-Frank Act, the Consumer Financial Protection Bureau (CFPB) will conduct rule-making and enforcement of consumer financial protection laws, promote financial education and monitor financial markets that affect consumers. Many parts of the Dodd-Frank Act relating to the CFPB are planned to go into effect on July 21, 2011. Treasury Secretary Timothy Geithner is charged with creating the CFPB. On September 17, 2010, Elizabeth Warren was named Assistant to the President and Special Advisor to the Secretary of the Treasury on the CFPB. On July 17, 2011, Richard Cordray was nominated as Director of the CFPB, having formerly served as head of the enforcement division at the agency. more>	Video Overview Proposed Organizational Structure

U.S. Commodity Futures Trading Commission (CFTC)
Key Pages	Summary	Related Documents	Meetings
CFTC Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues	The mission of the Commodity Futures Trading Commission (CFTC) is to protect market users and the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to foster open, competitive, and financially sound futures and options markets. more>		October 1, 2010 October 1, 2010 October 19, 2010 October 26, 2010 November 10, 2010 November 19, 2010 December 1, 2010 December 9, 2010 December 16, 2010 January 13, 2011 January 20, 2011 January 26, 2011 February 24, 2011 April 12, 2011 April 27, 2011 June 14, 2011 July 7, 2011 July 19, 2011

U.S. Securities and Exchange Commission (SEC)
Key Pages	Summary	Related Documents	Meetings
SEC Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues	The U.S. Securities and Exchange Commission (SEC) is the U.S. regulatory agency charged with the oversight of securities markets and market participants in the U.S. Its mission is to protect investors, to maintain fair, orderly, and efficient markets, and to facilitate capital formation. Mary L. Schapiro is the current chairman of the SEC. more>	Organizational Study and Reform	October 13, 2010 November 3, 2010 November 19, 2010 December 3, 2010 December 15, 2010 January 20, 2011 January 25, 2011 February 2, 2011 February 9, 2011 March 2, 2011 March 30, 2011 April 27, 2011 May 18, 2011 May 25, 2011 June 15, 2011 June 22, 2011 June 29, 2011

CFTC Comment Letters

Procedures To Establish Appropriate Minimum Block Sizes for Large Notional Off-Facility Swaps and Block Trades

Wholesale Markets Brokers Association - May 2, 2012

Procedures To Establish Appropriate Minimum Block Sizes for Large Notional Off-Facility Swaps and Block Trades
May 2, 2012

From the comment letter: “The potential implementation of the CFTC’s Proposed Rules, when combined with certain provisions of the SEF Proposal, almost certainly will produce an outcome that is arbitrary, capricious, or manifestly contrary to the statute. The CFTC should strongly reconsider implementation of this regime, as it is inconsistent with statutory authority and would cause irreparable harm to OTC markets… In addition to being inconsistent with the plain statutory language adopted by Congress, the WMBAA believes that imposition of such a restrictive regime will severely impair and fragment the liquidity in OTC swaps markets that rely on anything other than a fully electronic central limit order book or request for quote systems, such as voice-based systems or hybrid systems, which contain a voice component to create liquidity.”

Morgan Stanley - May 11, 2012

Procedures To Establish Appropriate Minimum Block Sizes for Large Notional Off-Facility Swaps and Block Trades
May 11, 2012

In their letter, Morgan Stanley focuses primarily on the “macro-economic issues involving Block Size Rules and their interaction with certain other proposed and final rules. In particular, [they] are concerned that the Block Size Rules will result in reduced liquidity in the swaps market for all market participants.” Morgan Stanley believes that the Block Size Rule is “critical to the future success of OTC swap markets. It is the ‘final check’ that ensures an appropriate balance between transparency and liquidity. Unfortunately, [they] believe that the rule as proposed will not get the job done.”

Investment Company Institute - May 14, 2012

Procedures To Establish Appropriate Minimum Block Sizes for Large Notional Off-Facility Swaps and Block Trades
May 14, 2012

The ICI appreciates that the ‘CFTC intended the re-proposal to provide a more tailored approach, one that would increase the transparency of swap transactions without damaging liquidity in the swap markets. We remain concerned, however, that the proposed swap categories are too broad – grouping swaps with vastly different liquidity profiles together – and that the proposed 67-percent notional amount calculation would result in too high a threshold for block trades. We recommend that the CFTC analyze the swap data that it will receive from repositories to refine further the swap categories that will pool swaps with similar liquidities. Moreover, we respectfully urge the CFTC to adopt the 50-percent notional amount calculation that was suggested by the Commission as an alternative approach and to phase-in this standard over a period of time for very illiquid categories of swaps. We also recommend some modifications to the frequency of the calculation as well as the data used in the calculation. We provide our comments in more detail below.”

Freddie Mac - May 14, 2012

Procedures To Establish Appropriate Minimum Block Sizes for Large Notional Off-Facility Swaps and Block Trades
May 14, 2012

From the comment letter: “Freddie Mac supports the goal of increasing transparency in the swaps markets. We are concerned, however, that the Proposal’s relevant minimum block sizes will materially reduce market liquidity. Therefore, Freddie Mac urges the Commission to consider reducing these minimum block sizes. Specifically, we recommend that the Commission adopt a 50-percent notional amount calculation methodology for determining the appropriate minimum block sizes for interest rate swaps. Thereafter, as the Commission obtains more comprehensive data about the liquidity of the swaps markets over time, it might consider raising the minimum block sizes.”

ISDA/SIFMA - May 14, 2012

Procedures To Establish Appropriate Minimum Block Sizes for Large Notional Off-Facility Swaps and Block Trades
May 14, 2012

In their comment letter, ISDA and SIFMA comment that:

The appropriate minimum block size framework set forth in proposed section 43.6(b) at the asset class, category, and currency grouping levels is not sufficiently granular to consider vast differences in the trading frequency and volume of different swap products within those categories.
In product categories or currencies that trade below a certain frequency threshold, all transactions should be treated as block transactions.
The Commission should revise its proposed methodology for determining appropriate minimum block sizes from a 67% notional amount calculation to a 50% notional amount calculation in order to align the ratio of block size to daily volume in the swaps market to a level more similar to that of futures markets.
The Commission should revise its trimmed data set mechanism, which is currently calibrated such that it would fail to exclude even the largest transactions done in swaps markets, thus failing to preclude a very large transaction from substantially skewing the block threshold.
The Commission should set the initial cap size as the lower of the relevant block size or interim cap size, and set the cap size equivalent to the relevant block size during the post-initial phase.

Barclays - May 14, 2012

Procedures To Establish Appropriate Minimum Block Sizes for Large Notional Off-Facility Swaps and Block Trades
May 14, 2012

Barclays believes that:

all product/transaction types that are not ‘made available to trade’ and mandated to transact on SEFs (or DCMs) should be reported as blocks for the purpose of post-trade reporting with appropriately calibrated delays
for all swap categories, when there are no more than three transactions per business trading day in the instrument these swap categories be treated as blocks for the purpose of post trade reporting
a multi-dimensional treatment of block sizes for options is needed in order to provide the scalars necessary to set block sizes that reflect the fundamentals of option contracts and products

Managed Funds Association - May 14, 2012

Procedures To Establish Appropriate Minimum Block Sizes for Large Notional Off-Facility Swaps and Block Trades
May 14, 2012

MFA recognizes that the “Commission has a difficult task in balancing the twin statutory goals of enhancing pre- and post-trade transparency in the swaps market on the one hand, while also ensuring that market liquidity is not adversely impacted on the other hand. If minimum block sizes are set too low, we believe inadequate market transparency could harm price competition and lead to wider bid/ask spreads. Conversely, if minimum block sizes are set too high, market liquidity could be adversely affected if market-makers (i) become reluctant to transact in size for fear of being unable to hedge their risks before public disclosure causes adverse price movement in the market; or (ii) quote wider bid/ask spreads to offset this incremental risk. MFA’s overarching concern is that the cost of erring in either direction will likely be borne by the end user.”

Vanguard - May 14, 2012

Procedures To Establish Appropriate Minimum Block Sizes for Large Notional Off-Facility Swaps and Block Trades
May 14, 2012

For the reasons outlined below, “Vanguard supports a phased implementation allowing time for data assessment, swap categorization and block size determinations to preserve liquid swap trading that is fundamental to financial markets and risk management:

While critical risk issues presented by the market events of 2008 are appropriately targeted by reforms addressing non-public reporting, margining, and central clearing; the more aspirational goal of enhanced competitiveness through price transparency must be tempered by the fundamental objective of preserving market liquidity.
Given the extremely short time delay proposed for the public reporting of market-moving block trades, it is imperative to focus on the size and volume of trades in each swaps category that can be immediately publically reported without market-moving impact.
Notwithstanding the CFTC’s expanded list of swaps categories, a much more granularized approach is needed to recognize distinct liquidity pools in assessing appropriate block trade sizes for each category.
The CFTC’s uniform, and seemingly arbitrary block size formula must be rejected in favor of a much more nuanced approach focused on minimizing market impact, where the block size is tailored for each swaps category with the possibility for all trades in a particularly illiquid category to achieve block treatment.”

Pre-enactment and Transition Swap Data Recordkeeping and Reporting Requirements

ISDA - June 9, 2011

Pre-enactment and Transition Swap Data Recordkeeping and Reporting Requirements
June 9, 2011

In the comment letter, ISDA suggests:

a compliance period that is at least 12 months in length;
that "the Commission should consider that market participants only provide the data elements set forth in the NPR that are currently available and provide those data elements in the form available, thereby avoiding recreation, reformatting and reorganization of past data";
that institutions with existing electronic records be allowed to resubmit that report and should not be faced with additional reporting requirements;
a master agreement identifier should not be included in a required report by an institution;
that a test to determine a reporting party be required only as of the compliance date;
that "if a non-U.S. person trades with a non-U.S. SD those trades should not be reportable to the U.S. regulators even if the non-U.S. person or SD is a subsidiary of a U.S. person [and that] if non-U.S. entities (including non-U.S. affiliates or branches of a U.S. bank) become subject to reporting requirements in relation to transactions with non-U.S. counterparties they will be at a competitive disadvantage as compared to local competitors";
that institutions should be required only to maintain data relating to swaps expired prior to April 25, 2011 and be provided to the CFTC only upon request; and
the issue of historical swap data reporting for mixed swaps should be treated with exceptional care and be significantly influenced by comments from the marketplace.

Global Foreign Exchange Division - June 9, 2011

Pre-enactment and Transition Swap Data Recordkeeping and Reporting Requirements
June 9, 2011

The Global Foreign Exchange Division represents members of the FX market in cooperation with the Association for Financial Markets in Europe (AFME), the Securities Industry and Financial Markets Association (SIFMA) and the Asia Securities Industry and Financial Markets Association (ASIFMA).

From the comment letter:

"We believe that at the very least, the industry would require a minimum period of 12 months from the publication of all final rules before the start of regulatory reporting, and in the case of the foreign exchange industry potentially longer given the specific challenges faced by the market, being:

the scale issues that are involved in building reporting capability for a market with as many transactions and participants as FX; and
the absence of any existing trade or swap data repository infrastructure (unlike in rates, equity and, of course, credit)."

"We believe that there should be no mandatory reporting requirements for historic swaps that have expired prior to the Compliance Date. We propose that banks should be required to keep records of such swaps, which would be available on request."

The comment letters also provides recommendations regarding the recordkeeping time burden, data to be reported and inter-affiliate transactions. It is also suggested that an appropriate phase-in period for the reporting of high volumes of data would be three months.

Financial Services Roundtable - June 7, 2011

Pre-enactment and Transition Swap Data Recordkeeping and Reporting Requirements
June 7, 2011

From the comment letter:

"We request the CFTC to further consider the reasoning for collecting historical swap data, as these swaps will terminate prior to the compliance date... In the alternative, we request the CFTC to create a safe harbor from the recordkeeping requirements for institutions that have complied with the previously issued interim-final rules by preserving all information on file, yet do not have full records for pre-enactment swaps."
"We believe that the CFTC should continue to limit the regulatory requirements it imposes on internal transactions between affiliates of a parent company."
"The final rule should expressly designate swap data and swap data reports as trade secrets and confidential commercial or financial information, and as information contained in examination or operating reports prepared for the CFTC's use. The final rule should include express treatment of swap data and swap data reports as confidential supervisory information."

The Financial Services Roundtable also recommends phase-in timeline for implementation of the proposed rules to provide institutions with adequate time to prepare reports related to history swap data.

Coalition for Derivatives End-Users - June 9, 2011

Pre-enactment and Transition Swap Data Recordkeeping and Reporting Requirements
June 9, 2011

The following organizations are members of the Coalition for Derivatives End-Users:

Business Roundtable
Commodity Markets Council
National Association of Corporate Treasurers
National Association of Real Estate Investment Trusts
The Real Estate Roundtable
U.S. Chamber of Commerce

The coalition recommends that end-users be provided a minimum of nine months to comply with the proposed rules, that the CFTC clarify its specific provisions concerning U.S.-based non-SD/MSPs facing foreign SD/MSPs, that end-users be provided a minimum of 18 months to comply with the unique counterparty identifier provision, that further comment from the marketplace be allowed in regard to the master agreement identifier provision and that the SEC should not overreach in creating historical swap data regulation under Dodd-Frank as the "logistical burden and tremendous cost of extracting this information" would not benefit the affected institutions.

Coalition of Physical Energy Companies - June 9, 2011

Pre-enactment and Transition Swap Data Recordkeeping and Reporting Requirements
June 9, 2011

"As physical energy companies whose focus is on their energy businesses, COPE members' concern regarding the Reporting NOPR is geared towards ensuring that the complexity and compliance burden on non-financial entities is limited to the degree possible."

Specifically, COPE suggests in the letter that the CFTC should:

require institutions to only retain historical swap data and submit a one-time report of proposed terms;
use the compliance deadline as a guideline for reporting and avoid compliance action after this date;
be more specific as to the data that is required to be retained by institutions;
be more specific as to the meaning of the phrase "information relating to the terms of the transaction;
"defer reporting for 180 days after the compliance date for swaps between non-SD/MSPs or permit the initial report to be amended in 180 days to place all non-SD/MSPs on the same compliance schedule, whether or not they are required to report a given swap"; and
ensure that the swap data repository have one simplified reporting system, accessible by all end-users no matter their access to sophisticated technology.

Working Group of Commercial Energy Firms - June 9, 2011

Pre-enactment and Transition Swap Data Recordkeeping and Reporting Requirements
June 9, 2011

A summary of the comment letter:

"Issuance of the proposed rule in advance of regulations further defining the term 'swap' creates legal and regulatory uncertainty and increases compliance risk--

The existing provisions of the CEA and CFTC regulatory requirements should apply for purposes of identifying historical swaps subject to the proposed rule; and
Existing CFTC guidance interpreting the forward contract exclusion should continue to apply;

Recordkeeping and reporting requirements--

Minimum primary economic terms;
Confirmation, master agreement, and credit support agreement data;
Reporting of images of documentation; and
Data retention and retrieval requirements;

The CFTC should clarify that under the proposed reporting hierarchy, an entity's status as a swap dealer or major swap participant should take precedence over its jurisdictional status;
Implementation--

Reporting requirements should not be implemented until SDRs, the Commission, and Other Entities have the tested capacity to effect reporting;
Unique counterparty identifiers;
Reporting of transaction data;
Compliance date; and
Cost-benefit considerations; and

The CFTC should issue guidance for the proposed rule or create a safe harbor for good faith compliance efforts."

Federal Home Loan Banks - June 9, 2011

Pre-enactment and Transition Swap Data Recordkeeping and Reporting Requirements
June 9, 2011

From the comment letter, written by Sutherland Asbill & Brennan LLP on behalf of the Federal Home Loan Banks:

"Under 2(i) of the Commodity Exchange Act (the 'CEA'), as amended by 722 of the Dodd-Frank Act, the provisions of the Dodd-Frank Act apply to activities outside the United States if such activities have a direct and significant connection with activities in, or effect on, commerce in the United States. Accordingly, the FHLBanks presume that a number of foreign swap dealers who regularly enter into swap transactions with counterparties in the United States will have to register with the CFTC and will be subject to full regulation as swap dealers. The FHLBanks do not believe that the CFTC should apply its reporting rules to these swap dealers any differently than it applies the other requirements applicable to all swap dealers under the Dodd-Frank Act and the CFTC's rules promulgated in connection therewith.

If the CFTC has regulatory jurisdiction over a swap dealer, such swap dealer should be the Reporting Counterparty under the Proposed Rules and the General Recordkeeping and Reporting Proposed Rules, regardless of whether such swap dealer is a U.S. person."

Real Time Public Reporting of Swap Transaction and Pricing Data

Goldman Sachs - January 18, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information
January 18, 2011

Regarding the real-time reporting requirements from the comment letter:

"...we respectfully recommend that the Commissions modify the proposal in the following ways:"

"Define specific categories to reflect market differences within an asset class."
"Refine block thresholds to more accurately capture trades that would have a market impact."
"Establish a tiered approach to the treatment for block trades."

"Further, we would suggest that the SEC reconsider the exclusion of certain equity swaps from the block trade regime."

JP Morgan - January 12, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information
January 12, 2011
From the comment letter:

"JPM has two principal concerns with the Rules as proposed. The first is that corporate end users are likely to see a significant increase in costs for large, customized hedging transactions, particularly in Commodity, Interest Rate, Foreign Exchange and Equity markets. The second concern is a likely reduction in market depth in all derivatives markets. Both of these potential effects (increase in transaction costs and decrease in market depth) are aspects of liquidity."

Securities Industry and Financial Markets Association (SIFMA) - January 12, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
January 18, 2011 Summary points from the comment letter:

The reporting party should always be the SBS Dealer or MSP, whether or not it is a U.S. Person.
The delay in public dissemination of block trade information should be uniform and should apply to all trade data, not just notional size.
The threshold for “control” for purposes of reporting under Regulation SBSR should be raised from 25% ownership to no less than majority ownership.

Investment Company Institute (ICI) - February 7, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
Swap Data Recordkeeping and Reporting Requirements
February 7, 2011

According to the ICI, market transparency is "a key element" to achieving the goals of ensuring integrity and quality of the market. As such, the institute recommends that the commission:

"define a block trade by evaluating the market for a particular swap category to determine what might be an illiquid size, and
change the reporting time frame to the later of 24 hours after trade execution or the opening of trading the following day."

In the letter, the ICI also recommended several modifications to the proposal, regarding coordination of rulemaking among regulatory agencies.

IntercontinentalExchange - February 7, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
Swap Data Recordkeeping and Reporting Requirements
February 7, 2011

Summary of recommendations from the comment letter:

Simplify the selection of a swap data repository (SDR) by allowing the reporting party to select the SDR as opposed to having such decision made by a SEF;
Adopt reporting by lifecycle rather than snapshot for the “Other Commodity” asset class;
In the event of equal parties to a trade, simplify the selection of the reporting party by requiring the selling party to be the reporting party;
Eliminate redundant valuation reporting by only requiring a dervatives clearing organization (DCO) to report valuation data for cleared transactions; and
Allow SDRs to charge commercially reasonable fees to distribute public swap data.

Markit - February 7, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
Swap Data Repositories
February 7, 2011

Summary of key points from the comment letter:

Markit believes that:

the Real-Time Reporting Regulation should clarify that the data intended for real-time reporting purposes belongs to the applicable market participants and can only be used for other commercial purposes with the express permission of participants;
standardization of pricing methodologies should be phased in over time and the CFTC should promote industry solutions to pricing normalization rather than implementation through a mandate on the participant level;
the CFTC and the SEC should reconcile their reporting rules and regulations to ensure consistency of approach to similar products (e.g., a single name CDS contract should be reported consistently with the same set of standards as a broad index CDS); and
as part of its adoption of unique product identifiers, the Commission should first establish uniform taxonomy.

Coalition for Derivatives End-Users - February 7, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
Swap Data Recordkeeping and Reporting Requirements
February 7, 2011

From the comment letter:

"The Coalition recommends that the Commission consider...a more nuanced, robust, and granular categorization of swap instruments to account for the liquidity impact of various economic terms and non-economic factors."
"If large market-moving trades are misclassified as normal size trades and, therefore, do not qualify for the time delay afforded to block trades, end-user counterparties could face increased hedging costs as dealer counterparties would pass the higher cost of managing their increased trading risks onto end-users."
In developing a block trade system, the commission "must keep in mind the fundamental difference between the bond market (with a finite set of immutable instruments) and the OTC derivatives market (with a near infinite set of mutable instruments)".
The coalition understands the balance that must be struck between the "two opposing objectives" of price reproducibility and anonymity.
"Because most end-users will be engaged in non-cleared trades, the price discovery benefits of reporting these transactions in real-time is questionable."

For each point, the coalition makes recommendations as to how the final rules would alleviate its concerns.

Global Foreign Exchange Division (SIFMA, AFME, ASIFMA) - February 7, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
Swap Data Recordkeeping and Reporting Requirements
February 7, 2011

In the comment letter, the Global Foreign Exchange Division offers several recommendations and observations, including:

No real time reporting obligation should be required for FX forwards and swaps.
The industry should be granted the requisite amount of time to build the appropriate infrastructure to avoid the risk that the initial data repository proves inadequate and further resources and expense must be dedicated by the industry to achieve the desired repository structure."
Additional criteria are needed to classify a swap within a certain asset class.
"For FX, there are significant implementation issues in determining which counterparty should report if they are of the same hierarchy," as opposed to other asset classes where "there is usually a distinct buyer and seller of the swap".

LCH.Clearnet Group - February 7, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
February 7, 2011

From the comment letter:

"LCH.Clearnet is concerned that the real time reporting and public dissemination of information with respect to swap transactions effected in connection with the default management processes of a Derivatives Clearing Organization (“DCO”) upon the default of a clearing member will undermine the default management process and have a negative effect on market stability. This is especially true as such a default is likely to happen against the backdrop of stressed market conditions."

CME Group - February 7, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
Swap Data Recordkeeping and Reporting Requirements
February 7, 2011

From the comment letter:

"The Commission should clarify in its final rules that each initial regulatory report for a cleared swap must be directly reported to the applicable DCO or SDR chosen by such DCO (“DCO-SDR”). This approach is the lowest cost and least burdensome method for implementing the regulatory reporting requirements."

"DCOs will necessarily have already established connections with relevant execution venues and other market participants for cleared trades. These existing connections can be used for reporting purposes as well. Requiring entirely redundant reporting channels to non-DCO SDRs for cleared trades is at best unnecessary and costly and at worst could create unnecessary ambiguity about the true state of a trade or position."

Managed Funds Association - February 7, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
Swap Data Recordkeeping and Reporting Requirements
February 7, 2011

From the comment letter:

"Protecting counterparty identification information is of paramount importance to our members. Each of our members employs a customized and proprietary trading strategy, so disclosure of identifying information of swap participants could result in disclosure of the trading positions and strategy of our members."
"The Proposed Reporting Rule does not address whether the public dissemination of such swap transaction detail is to be completed pre- or post-allocation. We believe the real-time disseminator should publicly disseminate such swap transaction data pre-allocation..."
If the Commission elects to set block trade levels prior to obtaining appropriate data, it should set the initial levels for all swap asset classes sufficiently low such that they will not reduce market liquidity.
"We are concerned, however, that the proposed 15 minute delay for dissemination of block transaction data could have a negative impact on pricing and therefore liquidity."
"Congress did not intend for the public dissemination of comprehensive data for non-standardized (bespoke) swaps. Such disclosure, even anonymously, could reveal proprietary trading strategy information."
"We are concerned that the timing requirements for reporting of swap data to an SDR are impracticable and burdensome."

ISDA/SIFMA - February 7, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
Swap Data Recordkeeping and Reporting Requirements
Reporting, Recordkeeping, and Daily Trading Records Requirements for Swap Dealers and Major Swap Participants
February 7, 2011

From the comment letter:

"Drawing on the lessons from three trade reporting regimes and market data on interest rate and credit derivatives, we propose several considerations that an effective trade reporting regime for OTC derivatives should reflect:

Block trade thresholds should be set so that liquidity is not impaired, in order to preserve the ability of investors and companies to hedge their risks in a cost-effective way.
Rules should be tailored to products and markets. Rules for less liquid products should be different from rules for more liquid products. One size does not fit all.
New rules for trade reporting should be phased in and refined over time. Rules should be re-calibrated and methodologies re-assessed in light of experience and market changes.
Block trades may constitute a significant amount of trading volume for certain products.
For highly customized products, price transparency may be uninformative and misleading.
Volume dissemination caps such as those found in TRACE are important means of mitigating the effects on liquidity of real time reporting for all OTC derivatives products.

The proposed rules by the CFTC and SEC should be modified with these considerations in mind. Most importantly, rules should calibrate block trade thresholds to reflect trade volume and liquidity for specific instruments and limit disclosure for certain large block trades."

Barclays Capital - February 7, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
February 7, 2011 Recommendations from the comment letter:

Post trade reporting requirements to be based on objective observations of market data;
A more flexible and tailored approach to transparency requirements;
Dynamic thresholds for block trade sizing;
A reporting accommodation for illiquid markets based on average daily volume;
Special accommodations for bespoke markets; and
Consider transparency requirements consider the needs of end-users.

BlackRock - February 7, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
February 7, 2011 The comment letter explains BlackRock's perspective on transparency, block trades, risk reporting, and trade reporting, and includes four graphic tables and flow charts explaining:

Risk Reporting and Trade Reporting for SEFs, DCOs and bilateral uncleared trades;
Timeline of data availability; and
Block trade and large notional swap liquidity for interest rate products and credit default swaps.

Depository Trust & Clearing Corporation - February 7, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
February 7, 2011

Summary points from the comment letter:

"DTCC urges the Commission and the Securities and Exchange Commission (“SEC”) to harmonize their respective regulatory regimes establishing reporting processes for credit and equity derivatives."
"The Commission should set and apply consistent thresholds for block trades in public dissemination by both SDRs and any market operators who directly disseminate information."
"DTCC questions whether an unregulated entity should be fulfilling the Commission’s dissemination requirements, when SDRs are created by the statute to collect the very same data for regulatory and reporting purposes."
"After the final rules are adopted, market participants must be given adequate time to develop and implement appropriate reporting and compliance systems and procedures."

FINRA - February 17, 2011

Real Time Public Reporting of Swap Transaction and Pricing Data
February 17, 2011

FINRA comments reflect its experience with the Trade Reporting and Compliance Engine ("TRACE"), in which rules already require real-time reporting of corporate and agency debt securities transactions and "provide for the immediate dissemination of such information to the market." TRACE has "significantly increased transparency in these sectors of the bond markets and improved pricing in such markets." FINRA "applauds the commission's efforts" and adds that "there has been no observed loss of liquidity since the launch of TRACE or after the dissemination of last-sale information was adopted as the general policy..."

Swap Data Recordkeeping & Recording

Comment letters for this rule proposal can be found under the heading Swap Dealers and Major Swap Participants Regulation.

Registration and Regulation of Swap Data Repositories

European Securities and Markets Authority - January 17, 2011

Swap Data Repositories
January 17, 2011

From the comment letter:

"In the case of foreign SDRs, our concerns stem from the fact that in the proposed rulemakings on SDRs we have not identified any reference to equivalency of regulatory regimes or cooperation with the authorities of the country of establishment of the foreign SDRs."
"We believe that it would be preferable to aim at cooperating with foreign authorities to ensure the application and enforcement of equivalent rules and to guarantee access to the information needed for regulatory purposes and not necessarily to all data and records held by a foreign SDR."
"...we strongly encourage you to consider a different regime than the one described in your proposed rulemakings. Accordingly, you may want to contemplate a regime where foreign SDRs can register with the CFTC if the laws and regulations in a foreign jurisdiction are equivalent to the US ones and if a Memorandum of Understanding (MoU) between the CFTC and the relevant foreign authorities has been signed."
"We believe that ensuring confidentiality is essential for exchanging information among regulators and [the Dodd-Frank Act's] indemnification agreement undermines the key principle of trust according to which exchange of information should occur."

Securities Industry and Financial Markets Authority - February 7, 2011

Swap Data Repositories
Real Time Public Reporting of Swap Transaction and Pricing Data
February 7, 2011

Regarding swap data repositories:

The “reporting counterparty” should always be the swap dealer or MSP, whether or not it is a U.S. person.
“Unique Counterparty Identifiers” should be assigned at the fund or account level as opposed to the trust level.
The regulatory community should seek to adopt a single, cohesive LEI system that would apply to all regulators.
Reporting of “corporate affiliations” should only be required in situations of majority ownership.
The terms of a swap should never be changed as a result of confirming or reporting the swap.

MarkitSERV - February 7, 2011

Swap Data Repositories
Real Time Public Reporting of Swap Transaction and Pricing Data
February 7, 2011

"MarkitSERV believes that:

SDRs and their affiliates should be permitted to offer a range of Ancillary Services in addition to their core services of data acceptance and data storage;
the Commission should allow for various acceptable fee models for SDRs, including the broadly established "sell-side pays" approach as one of them;
SDRs should not be restricted in how the SDRs price their non-core, optional Ancillary Services that can be provided by unregulated Third–Party Service Providers;
commercial use of participants’ data should be governed by agreements executed between participants and the SDRs;
SDRs should be required to accept all formats and types of data from participants provided that SDRs are able to recoup their additional reasonable costs in processing the non-standard data;
SDRs should be deemed to have fulfilled their statutory duty to confirm the accuracy of the swap data if the submitted transaction is legally confirmed by the counterparties;
SDRs should be able to set minimum standards for accessing SDRs;
only registered SDRs, or their affiliates, should be allowed to serve as real-time trade reporting disseminators;
life-cycle events should be reported to the same SDR that received original swap transaction data (both for regulatory reporting purposes and for real-time reporting purposes as well);
SDRs must be able to accept all swap instruments in a given swap asset class;
the CFTC and the SEC should harmonize their rules on what parties should be required to report swap transactions;
SDRs should have greater flexibility in determining on a going forward basis what swap data fields should be reported to the Commission and in real time to the public; and
implementation of real-time reporting rules should be phased in over time in coordination between the CFTC and the SEC."

Managed Funds Association - February 21, 2011

Swap Data Repositories
February 21, 2011

From the comment letter:

"MFA supports regulators having appropriate access to swap data maintained by SDRs, as well as the Commission’s proposal to limit such access only to a regulator that is acting clearly within the scope of the regulator’s authority. We are concerned, however, that in practice foreign regulators will have unlimited access to data maintained by an SDR because the Proposed Rule, as drafted, only requires an SDR to notify the Commission that a foreign regulator seeks access to the swaps data it maintains, but does not require the Commission to play an active role in verifying the validity of such request."

CME Group - February 22, 2011

Swap Data Repositories
February 22, 2011

Summary of key points from the comment letter:

"The rules should feature explicit exemptions for DCOs complying with applicable core principles."
"The rules should provide for notice registration for DCOs."
"The term “market participant” in the current formulation of the rule is confusing. It should not be read to apply to only swap counterparties."
"Market-wide surveillance duties are best placed with a regulator or self-regulatory organization empowered with disciplinary powers and subject to concomitant responsibilities."
"The CFTC’s approach to receiving access to SDRs should be carefully considered."
"Allowing DCOs or DCO-SDRs to limit their acceptance of data to the transactions for which such DCO (or affiliated SDR) accepts for clearing is the quickest path to implementing reporting requirements for the majority of swap trades, that is, for reporting of standardized, cleared transactions."

Depository Trust & Clearing Corporation - February 22, 2011

Swap Data Repositories
February 22, 2011

From the comment letter:

"The mandatory reporting regime creates an unintended opportunity for the SDR toimproperly commercialize the information received. As an aggregator and collector of swap data supporting regulatory oversight and supervisory functions, as well as regulator-mandated public reporting, it is critical that an SDR’s public utility function is separated from potential commercial uses of the received data. The principle of user control over the data for non-regulatory purposes must also be scrupulously honored, and care should be taken to assure that SDRs maintain an arms-length and nondiscriminatory relationship with other parts of the market infrastructure (i.e., clearing, confirmation, and execution facilities) and that these other parts of the infrastructure maintain similar relationships with SDRs."
"In order to assure that non-regulatory uses of mandatorily reported data remain in the hands of the counterparties, SDRs should be “user-governed.”
"SDR fee structures should reflect an at-cost operating budget."
"DTCC recommends that appropriate transitional arrangements be made to avoid market disruption by the implementation of the Proposed Rule.

American Benefits Council/Committee on the Investment of Employee Benefit Assets - February 22, 2011

Swap Data Repositories
February 22, 2011

Summary of key points from the comment letter:

Any centralized recordkeeping facility for swaps should be a registered swap data repository.
A swap data repository should not alter the terms of any swap reported to it.
A swap data repository should provide open access to all market participants.
Both counterparties to a swap should be able to access data reported to an SDR on that swap.
Multiple SDRs should be allowed to accept the data for any particular swap for reporting.

SEC Comment Letters

Security-Based Swap Data Repository Registration, Duties, and Core Principles

MarkitSERV - January 24, 2011

Security-Based Swap Data Repository Registration, Duties, and Core Principles
Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information
January 24, 2011

In the letter, MarkitSERV offers the following comments:

"SDRs and their affiliates should be permitted to offer a range of ancillary services in addition to their core services of data acceptance and data storage.
The SEC should allow for various fee models for SDRs, including the broadly established 'sell-side pays' approach.
The initial data submitted to the SDR belongs to the market participants and can only be used for commercial purposes if allowed by those owners.
The submission of bilaterally-confirmed or verified data to the SDRs ensures accuracy and consistency, and should be strongly encouraged.
Data consolidation should be promoted by:

mandating that all life-cycle events of a swap be reported to the same SDR;
mandating that SDRs accept all swaps in the asset class in which they are active; and
the Commission designating a single 'consolidator/aggregator' SDR per asset class or for all SBSs.

Only registered SDRs, or their affiliates, should be allowed to serve as real-time data disseminators.
The SEC’s approach of assigning reporting obligations to one of the counterparties, while allowing delegation to Third-Party Service Providers is preferable to the approach proposed by the CFTC.
The SEC’s imposition of the 15-minute outer boundary for reporting real-time swap transaction data may be overly prescriptive in some cases, while the CFTC’s 'as soon as technologically practicable' approach seems to afford appropriate flexibility.
SDRs themselves should be tasked with determining the set of specific reportable fields, although the Commission should establish a minimum set of reportable fields and appropriate data standards.
SDRs should be able to set reasonable standards for reportable SBS data and to recoup their reasonable costs in verifying and accepting highly-customized and non-standard data.
The implementation of the SDR Regulation and other rules should be phased in over time and in coordination with the G-20 international commitments and the timelines adopted in other jurisdictions, such as the E.U."

BNY Mellon - December 7, 2010

Security-Based Swap Data Repository Registration, Duties, and Core Principles
December 7, 2010

In the comment letter, BNY Mellon requests that the SEC clarify its interpretation of "processing of Swaps" in its proposed rules, as this clarification is needed in order for market participants to remain compliant with Dodd-Frank.

Managed Funds Association - March 24, 2011

Security-Based Swap Data Repository Registration, Duties, and Core Principles
Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information
March 24, 2011

MFA believes that the first two priorities of the OTC derivatives market should be:

"expanding the use of central clearing for liquid ("clearable") contracts; and
having trade repositories receive data on both cleared and bilateral swaps."

The following two documents are attached to the comment letter in support of MFA's arguments:

"Framework for the Open Items List from Buy-Side Participants of Actions Required for Buy-Side Access to Clearing;" and
MFA's recommended timeline for adoption and implementation of reform rules, as well as milestones timeline.

Depository Trust & Clearing Corporation - January 24, 2011

Security-Based Swap Data Repository Registration, Duties, and Core Principles
January 24, 2011

Summary of the comment letter:

SDRs should be "user-governed;"
SDRs should not commercialize received data while maintaining a strict unbias when exchanging data from any source, including providers associated with any SDR; and
SDR fee structures should be revised to include only "at-cost operating budgets."

Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information

CME Group - January 18, 2011

Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information
January 18, 2011

In the comment letter, CME Group suggests that the SEC closely coordinate its reporting and dissemination rules with the CFTC's regulation and also provide an extended timeline to allow affected market participants with sufficient time to comply with Regulation SBSR.

Cleary Gottlieb Steen & Hamilton LLP - February 14, 2011

Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information
February 14, 2011

Cleary Gottlieb Steen & Hamilton LLP sent the following comment letter on behalf of Bank of America Merrill Lynch, BNP Paribas, Citi, Credit Agricole, Corporate and Investment Bank, Credit Suisse Securities (USA), Deutsche Bank AG, Morgan Stanley, Nomura Securities International Inc., PNC Bank, National Association, Societe Generale, UBS Securities LLC and Wells Fargo & Co.

The letter indicates that the SEC proposal will cause "confusion and speculation" with regard to block transactions. The firms also believe that the SEC's exclusion of equity total-return swaps (TRS) from the block transaction exception would "impair market liquidity significantly" and lend to inefficiencies within swaps markets.

Barclays Capital - February 11, 2011

Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information
February 11, 2011

In the comment letter, Barclays Capital provides comments with regard to the following issues under Regulation SBSR of the Dodd-Frank Act:

issues inherent to specific markets, overly broad requirements and these issues and requirements' impact on liquidity;
block trade size calculation and allowing for "different thresholds per entity based on transaction maturity;"
a delay for reporting block trades; and
swap execution facility (SEF) trading protocols to create greater execution efficiency.

UBS Securities - February 7, 2011

Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information
February 7, 2011

UBS Securities suggests that the timeline for implementing Regulation SBSR should be extended, and that the SEC should consider the following changes (from the letter's executive summary):

calibrating reporting requirements to liquidity; and
reporting the actual notional amount of a transaction for trades.

LCH.Clearnet - January 18, 2011

Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information
January 18, 2011

LCH.Clearnet suggests the following in the comment letter:

An exception from Regulation SBSR would be appropriate for some SBS-related information that "will not be in the best interests of market participants and the public generally;"
Some reporting and dissemination of SBS information "will undermine the default management process and have a negative effect on market stability;" and
The details of a portfolio being liquidated should not be publicly disseminated until individual prices and net positions are available as these conditions outside of the "normal" market will lead to increased market volatility. These details should be reported immediately to the SEC only.

Vanguard - January 18, 2011

Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information
January 18, 2011

From the comment letter:

"Block trades should be defined to appropriately address the relative liquidity of specific trades and maturities."
"Public dissemination of all information about block trades should occur no earlier than 24 hours after execution."
"Equity total return swaps should not be excepted from the definition of block trade."
"Non-U.S. swap dealers should be required to report swaps to a swap data repository when transacting with U.S.-based swap end-users."

Investment Company Institute - January 18, 2011

Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information
January 18, 2011

From the comment letter:

"We support the concept of requiring reporting and public dissemination of certain swap transaction data. We are concerned, however, that Regulation SBSR does not adequately protect information regarding block trades. We recommend that the Commission, for those trades, delay reporting of all trade information, establish granular and current thresholds to identify block trades, change the reporting time frame to 24 hours, and eliminate the proposed exclusion for equity total return swaps ... we also recommend a number of modifications to the proposed reporting obligations to reflect swaps market practices and the status of technological developments in the swaps market."

FINRA - January 27, 2011

Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information
January 27, 2011

In the letter, the Financial Industry Regulatory Authority (FINRA) commends the SEC for recognizing the success of the Trade Reporting and Compliance Engine (TRACE) used by FINRA, but also recommends using TRACE for the reporting of SBS information in order to have one centralized location for accessible transaction data.

FINRA also makes suggestions that fall under the following named categories:

Proposed Reporting Requirements and Regulatory Oversight;
Transparency;
Implementation and Disseminated Data;
Consolidation of Data; and
Aggregate View of Marketplace.

SIFMA - January 18, 2011

Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information
January 18, 2011

In the comment letter, the Securities Industry and Financial Markets Association (SIFMA):

"identifies issues and presents our suggestions for future action relating to block trade exemption rules, which we regard as a critically important element of the reforms contained in Title VII of the Dodd-Frank Act;"
"sets out some general considerations that apply to all areas of the Proposed Regulation;"
"addresses specific points relating to the reporting of trade information under Proposed Rule 901(c);"
"deals with considerations relating to the reporting of collateral and valuation information under Proposed Rule 901(d);"
"responds to the Commission’s questions relating to responsibility for reporting, including consideration of issues relating to extraterritorial application of the Proposed Regulation."

The following two documents are also attached to the letter in support of SIFMA's arguments:

a table charting the letter's specific comments; and
"Block Trading Study."

Depository Trust & Clearing Corporation - January 18, 2011

Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information
January 18, 2011

The Depository Trust and Clearing Corporation recommends that:

the SEC and CFTC coordinate efforts for reporting and dissemination regulation;
the SEC use "existing market practices" when possible for reporting;
reporting and transaction confirmation processes should be consolidated;
Regulation SBSR phase its implementation;
the aggregation of data be automated; and
affected market participants be allowed the use of third parties for compliance purposes.

References

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Swap Data Regulation - Comment Letters

From MarketsReformWiki

Contents

CFTC Comment Letters

Procedures To Establish Appropriate Minimum Block Sizes for Large Notional Off-Facility Swaps and Block Trades

Pre-enactment and Transition Swap Data Recordkeeping and Reporting Requirements

Real Time Public Reporting of Swap Transaction and Pricing Data

Registration and Regulation of Swap Data Repositories

SEC Comment Letters

Security-Based Swap Data Repository Registration, Duties, and Core Principles

Regulation SBSR - Reporting and Dissemination of Security-Based Swap Information

References

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