August 19, 2015
Washington, DC — The U.S. Commodity Futures Trading Commission (Commission) today voted to propose amendments to existing regulations in order to provide additional 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. The comment period ends 60 days after the publication in the Federal Register.
The proposed amendments (Proposed Rules) would modify Part 45 of the Commission’s regulations, which the Commission adopted on December 20, 2011. Part 45 implements the requirements of Section 21 of the Commodity Exchange Act by establishing the manner and contents of reporting to swap data repositories (SDRs). As part of the Commission’s ongoing efforts to improve swap data quality, Commission staff has continued to evaluate the operation of Part 45, including reporting issues involving cleared swaps.
Among other goals, the Proposed Rules are intended 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. The Commission anticipates the Proposed Rules will have a number of other benefits, including a reduced likelihood of double counting notional exposures and an improved ability to trace the history of a cleared swap transaction from execution between the original counterparties to clearing novation.
Specifically, the Proposed Rules would:
For more information, see the Fact Sheet under Related Links.
Last Updated: August 19, 2015