19 August 2015

CFTC issues proposed amendments to swap data recordkeeping and reporting requirements for cleared swaps

The CFTC 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.

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.

Specifically, the Proposed Rules would:

·         Clarify DCO creation data reporting obligations for swaps created pursuant to the rules of a DCO that have a DCO as a counterparty;

·         Clarify which entity has the obligation to choose the SDR to which creation data is reported;

·         Eliminate confirmation data reporting obligations for swaps that are intended to be submitted to a DCO for clearing at the time of execution;

·         Clarify 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;

·         Clarify DCO obligations to report data providing for the linking of swaps involved in a cleared swap transaction;

·         Codify 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;

·         Clarify 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;

·         Clarify 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;

·         Clarify 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;

·         Modify and supplement primary economic terms data fields in Appendix 1 to part 45 to account for clarifications described above.

Full press release

Fact sheet

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