Difference between revisions of "CFTC Final Rule: Swap Data Recordkeeping and Reporting Requirements for Cleared Swaps"

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| align="center" style="background: #FFBFBF; color: black"| June 14, 2016
 
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[[Category:Timelines]]
 
  
 
On June 14, 2016 the [[CFTC|U.S. Commodity Futures Trading Commission]] (CFTC) approved a final rule that amends existing swaps reporting regulations in order to provide more clarity to swap counterparties and registered entities regarding their reporting obligations for cleared swap transactions; and to improve the efficiency of data collection and maintenance associated with the reporting of the swaps involved in a cleared swap transaction. <ref name="CFTC">{{cite  web| url=http://www.cftc.gov/PressRoom/PressReleases/pr7389-16| name=Amendments to Swap Data Recordkeeping and Reporting Requirements for Cleared Swaps| org=CFTC| date=July 11, 2016}}</ref>
 
On June 14, 2016 the [[CFTC|U.S. Commodity Futures Trading Commission]] (CFTC) approved a final rule that amends existing swaps reporting regulations in order to provide more clarity to swap counterparties and registered entities regarding their reporting obligations for cleared swap transactions; and to improve the efficiency of data collection and maintenance associated with the reporting of the swaps involved in a cleared swap transaction. <ref name="CFTC">{{cite  web| url=http://www.cftc.gov/PressRoom/PressReleases/pr7389-16| name=Amendments to Swap Data Recordkeeping and Reporting Requirements for Cleared Swaps| org=CFTC| date=July 11, 2016}}</ref>

Revision as of 16:11, 25 July 2016

Gavel.png FINAL RULE: The CFTC approved the final rule on June 14, 2016.
Dodd-Frank Timeline, Swap Data Recordkeeping and Reporting Amendments
Proposed Rule Final Rule Approved Compliance Date
August 31, 2015 June 14, 2016 December 27, 2016

On June 14, 2016 the U.S. Commodity Futures Trading Commission (CFTC) approved a final rule that amends existing swaps reporting regulations in order to provide more clarity to swap counterparties and registered entities regarding their reporting obligations for cleared swap transactions; and to improve the efficiency of data collection and maintenance associated with the reporting of the swaps involved in a cleared swap transaction. <ref name="CFTC">Amendments to Swap Data Recordkeeping and Reporting Requirements for Cleared Swaps. CFTC. Retrieved on July 11, 2016.</ref>

Background[edit]

The Dodd-Frank Act requires that all swaps are reported to swap data repositories (SDRs). <ref>Federal Register / Vol. 81, No. 123 /CFTC Amendments to Swap Data Recordkeeping and Reporting Requirements for Cleared Swaps. National Archives and Records Administration. Retrieved on July 12, 2016.</ref>

On December 20, 2011, the CFTC adopted Part 45 of the Commission’s regulations. Part 45 deals with the manner and contents of reporting to SDRs. <ref name=CFTCFact>CFTC Approves Final Rule to Amend Swap Data Recordkeeping and Reporting Requirements for Cleared Swaps. CFTC. Retrieved on July 11, 2016.</ref>

The Final Rule adopts as proposed changes to Part 45 proposed in the Federal Register on August 31, 2015. <ref name="CFTC"/>

Summary of the Rule[edit]

The Final Rule aims to remove uncertainty as to which counterparty to a swap is responsible for reporting creation and continuation data for each of the various components of a cleared swap transaction, including to further clarify whose obligation it is to report the extinguishment of a swap upon its acceptance by a derivatives clearing organization (DCO) for clearing <ref name="CFTC"/>.

The Final Rule:<ref name="CFTC"/>

  • Clarifies DCO creation data reporting obligations for swaps created pursuant to the rules of a DCO that have a DCO as a counterparty;
  • Clarifies which entity has the obligation to choose the SDR to which creation data is reported;
  • Eliminates confirmation data reporting obligations for swaps that are intended to be submitted to a DCO for clearing at the time of execution;
  • Clarifies DCO continuation data reporting obligations for swaps that are accepted for clearing, including the obligation to report terminations to the SDR to which the swap was originally reported;
  • Clarifies DCO obligations to report data providing for the linking of swaps involved in a cleared swap transaction;
  • Codifies no-action letters by proposing the elimination of the requirement for swap dealer/major swap participant reporting counterparties to report daily valuation data for cleared swaps (which is effective immediately upon publication in the Federal Register);
  • Clarifies DCO obligations to create, transmit, and use unique swap identifiers for swaps created pursuant to the rules of a DCO that have a DCO as a counterparty;
  • Clarifies that the DCO will be the reporting counterparty for swaps created pursuant to the rules of a DCO that have a DCO as a counterparty;
  • Clarifies that all swap data for a given swap created pursuant to the rules of a DCO that has a DCO as a counterparty, and that all swap data for each such swap that replaces a particular swap that is accepted for clearing, must be reported to a single SDR;
  • Modifies and adds data elements to be reported as primary economic terms data fields in Appendix 1 to Part 45 to account for clarifications described above

Related Documents: Final Rule and Fact Sheet[edit]

References[edit]

<references/>

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