CFTC Proposed Rule: Swap Data Recordkeeping and Reporting Requirements: Pre- Enactment and Transition Swaps

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Gavel.png FINAL RULE: This page refers to the proposed rule on historical swaps. The final rule was approved on May 18, 2012.
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

On April 12, 2011, the Commodity Futures Trading Commission (CFTC) held its thirteenth in the series of open meetings to consider the issuance of proposed rulemakings under the Dodd-Frank Act. One of the agenda items was a proposed rule regarding pre-enactment and transition swap data reporting and recordkeeping requirements.<ref>Open Meeting on Thirteenth Series of Proposed Rules under the Dodd-Frank Act. CFTC. Retrieved on April 15, 2011.</ref>


At its first open meeting related to the Dodd-Frank Act in October 2010, the CFTC issued an interim final rule on the reporting requirements of swaps that existed prior to Dodd-Frank and remain unexpired through the transition to the new regulatory regime. The interim final rule will require all such swaps to be reported to the Commission or to a swap data repository by an effective date to be determined. Additionally, the interim final rule contained a note recommending which information should be retained by all parties to a swap agreement, in anticipation of the final rules.

At its November 19, 2010 open meeting, the commission approved a rule proposal covering recordkeeping and reporting requirements for swaps entered into after final rules are issued. Since, as final rules are issued, the commission will require the submission of aggregated position reports, including portfolio compression and position offsets, an additional rule was needed. This rule proposal outlines certain types of data from existing swap agreements that must be retained by swap entities. 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.

The Proposal[edit]

The purpose of the proposal is to provide clarity as to which records must be retained, in order to ensure that any data that may be needed by regulators concerning historical swaps is available to regulators through swap data repositories (SDRs) beginning on the effective date.

Under the proposal, the initial data report must include certain information regarding the terms of the swap. The criteria differ depending upon the category of swap (e.g.;interest rate, equity, currency, etc.). A table highlighting the minimum economic terms required for each category of swaps can be found here.

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


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