Swap Data Regulation - Comment Letters

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Dodd-Frank Timeline, Interim Final Rule Regarding Reporting of Pre-enactment Swap Transactions
Proposal Date Comment Deadline Final Rule Issue
October 14, 2010 November 15, 2010 June 12, 2012
Dodd-Frank Timeline, Real Time Public Reporting of Swap Transaction and Pricing Data
Final Rule Issue Effective Date Compliance Date
December 20, 2011 March 9, 2012 December 31, 2012
Dodd-Frank Timeline, Registration and Regulation of Swap Data Repositories
Proposal Date Final Rule Issue Effective Date*
December 23, 2010 September 1, 2011 October 31, 2011
Dodd-Frank Timeline, Swap Data Recordkeeping and Reporting Requirements
Final Rule Issue Effective Date No-Action Relief, Part 43/45 No-Action Relief, Part 23
January 13, 2012 March 13, 2012 July 1, 2013 (IRS, CDS); Aug. 19 for other swaps June 30, 2013
Dodd-Frank Timeline, Swap Data Recordkeeping and Reporting Requirements for Pre-Enactment and Transition Swaps
Final Rule Issue Effective Date Compliance Date
June 12, 2012 August 13, 2012 April 10, 2013
Dodd-Frank Timeline, Swap Data Repository Registration, Duties and Core Principles Regulation, SEC
Proposal Date Comment Deadline Reopened Comment Period Deadline
December 10, 2010 January 24, 2011 July 22, 2013
Dodd-Frank Timeline, Real Time Public Reporting of Swap Transaction and Pricing Data, SEC
Proposal Date Comment Deadline Reopened Comment Period Deadline
December 2, 2010 January 18, 2011 July 22, 2013

Comment letters addressing swap data regulation rulemakings.

Comment letters addressing regulations common to all swap entities - Derivative Clearing Organizations (DCOs), Designated Contract Markets (DCMs), Swap Execution Facilities (SEFs), and Swap Data Repositories (SDRs) can be found under "Swap Entities Regulation - Comment Letters."

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

At its February 23, 2012 open meeting, the CFTC approved a proposed rulemaking that would group swaps into separate categories, establish minimum sizes for block trades and large notional off-facility swaps in each category, and protect the identities of swap counterparties in connection with the real-time public reporting of swap transaction and pricing data.[1]

This rule was originally proposed in conjunction with the final real-time reporting rules at its December 20, 2011 open meeting. The block trade rules were not part of the final rule, but rather have been re-proposed in this rulemaking.

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Pre-enactment and Transition Swap Data Recordkeeping and Reporting Requirements

On May 18, 2012, the CFTC approved a final rulemaking on swaps executed prior to passage of the Dodd-Frank Act ("pre-enactment swaps"), and swaps executed prior to passage of the Dodd-Frank Act, and transition swaps, those entered into between the law’s enactment date and the applicable compliance date for swap data recordkeeping and reporting ("transition swaps"). The goal of the final rule for these swaps, collectively called "historical swaps," is to specify what records must be kept and what data must be reported. The rule is also designed to ensure that historical swap data is available to regulators through swap data repositories (SDRs).

When final rules are issued, some or all of this data on existing swaps may be required to be submitted to either to the commission, or to a swap data repository.

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Real Time Public Reporting of Swap Transaction and Pricing Data

The requires the parties to a swap report the data to a "real-time disseminator" such as a swap data repository, or to a third party such as a designated contract market (DCM) or swap execution facility (SEF). The data shall be made public "as soon as technologically practicable." Block trades and "large notional swaps" transactions are allowed a time delay of up to 15 additional minutes before dissemination by the third party disseminator. The rule also specifies tests to be conducted to determine the appropriate minimum block size for block trades and large notional transactions.

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Swap Dealers and Major Swap Participants Regulation - Reporting and Recordkeeping - Comment Letters

The CFTC proposed rules on reporting, recordkeeping, public information and daily trading records requirements for swap dealers and major swap participants, at the December 1, 2010 Open Meeting. Specifically, swap dealers and major swap participants will be required to retain and submit certain records.[2] The final rule was approved at CFTC Open Meeting, February 23, 2012

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Registration and Regulation of Swap Data Repositories

In August 2011, the CFTC finalized rules rule to establish registration and regulation requirements for a newly created entity, the "swap data repository" (SDR). In the rule:

  • registration requirements will include the adoption of a new registration form—Form SDR;
  • SDR duties will include data acceptance; confirmation recordkeeping; real-time reporting, monitoring, screening and analyzing of data; maintenance of data privacy; regulator access; and adoption of emergency procedure requirements; and
  • SDR core principles will include considerations for antitrust, governance, and conflicts of interest.
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Interim Final Rule Regarding Reporting of Pre-enactment Swap Transactions

On October 1, 2010, the Commodity Futures Trading Commission (CFTC) held the first of a series of open meetings to consider the issuance of proposed rulemakings under the Dodd-Frank Act. One of the agenda items was an interim final rule for reporting requirements for swap transactions.[3] According to the rule, parties to a swap transaction will be required to report information on transactions that were entered into prior to Dodd-Frank but remain unexpired after rules are finalized. The rule also details the types of information that must be retained by swap participants.

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SEC Comment Letters

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

The SEC issued its proposed rules regarding security-based swap data repositories at theSEC Open Meeting, November 19, 2010. The proposal centers on Regulation SBSR which will "provide for the reporting of security-based swap information to registered security-based swap data repositories or the Commission and the public dissemination of security-based swap transaction, volume, and pricing information."

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

On November 19, 2010, the SEC held an open meeting concerning rules entailing how security-based swap transactions should be reported and publicly disseminated under the Dodd-Frank Act. Among the topics at this meeting were the parties responsible for reporting security-based swap information, the specific information to be reported, and the destination of the reported information.[4] Proposed rules were added to the Federal Register on December 2, 2010.

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References

  1. CFTC Open Meeting on One Final Rule and One Proposed Rule. CFTC. Retrieved on February 24, 2012.
  2. Open Meeting on Sixth Series of Proposed Rules under the Dodd-Frank Act. CFTC. Retrieved on February 16, 2011.
  3. Open Meeting on First Series of Proposed Rules under the Dodd-Frank Act. CFTC. Retrieved on March 3, 2011.
  4. Press Release - SEC Proposes Rules on Security-Based Swap Reporting. SEC. Retrieved on November 19, 2010.

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