Commodity Futures Trading Commission proposes new rules for swap data

The Commodity Futures Trading Commission (CFTC) approved a proposal to improve the quality of swap data and update regulations related to swap data repository (SDR) operations and governance.

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It is part of the CFTC’s Roadmap to Achieve High Quality Swaps Data, a comprehensive review of swap reporting regulations that the CFTC’s Division of Market Oversight announced in July 2017.

“I am pleased to see the first part of the Roadmap issued today. Completion of these proposed changes and the other changes described in the Roadmap will result in more complete, more accurate, and higher-quality data available to the CFTC and to the public; streamline data reporting; and help the CFTC perform its regulatory responsibilities,” CFTC Chairman J. Christopher Giancarlo said.

Specifically, the proposed rule would update requirements for SDRs to verify swap data with reporting counterparties; correct swap data errors and omissions for SDRs, reporting counterparties, and other market participants; and clarify SDR operational requirements to ensure that data is available to the CFTC and the public as required by the Commodity Exchange Act. Further, it would update governance regulations to streamline the requirements for SDRs.

The CFTC is now seeking comments on the proposal. The comment period ends 75 days after the proposal’s publication in the Federal Register. All comments will be posted on CFTC’s website.