U.S. SEC Adopts Swaps Reporting Rules

The U.S. Securities Exchange Commission (SEC) has adopted new rules which will govern the way certain over-the-counter (OTC) derivatives are reported to data warehouses.
By Joe Parsons(2147488729)
The U.S. Securities Exchange Commission (SEC) has adopted new rules which will govern the way certain over-the-counter (OTC) derivatives are reported to data warehouses.

The rules propose a framework for security-based swap data repositories, such as the Depository Trust & Clearing Corporation (DTCC), as regulators look to enhance transparency in the previously opaque OTC derivatives market

“These rules go to the core of derivatives reform by establishing a strong foundation for transparency and efficiency in the market, says Mary Jo White, chair of the SEC. “They provide a powerful framework for trade reporting and the public dissemination of information that addresses blind spots exposed by the financial crisis.”

The rules mark the SEC’s first venture into overseeing the reporting of derivatives, as the lion’s share of oversight has been conducted by the Commodity Futures Trading Commission (CFTC).

According to a statement from the SEC, the rules are similar to that of the CFTC’s, in which swap traders must adopt the global legal entity identifier (LEI) system to allow their trades to be identified within the repository. They also require the data warehouses to register, establish governance standards and designate a chief compliance officer.

The new rules will become effective 60 days after they are published in the Federal Register.

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