Jan 31, 2012 the swap data reporting rule requires reporting of swap continuation data on an ongoing basis to the same sdr to which the swap was initially reported. Deutsche bank faces cftc sanctions over swapdata report. Commodity futures trading commission three lafayette. The cftc swaps report is designed to be a valuable public service due to its unique combination of data aggregation, free availability, and weekly publication frequency. For swaps executed prior to the applicable compliance date, see part 46. As for reporting, the cftc requires that one of the two counterparties to a swap must report the data to a swap data repository sdr. The swap transaction data will be available electronically to the cftc, and to the public through the sdrs websites. With this in mind, the cftc and the dmo have made the following decisions as of feb. For parts 43 and 45 swaps executed on a sef or dcm the sef or dcm must report swap creation data to an sdr as soon as technologically practicable. Reconciliations are a key tool for ensuring that swap data reporting is. Cftc approves final rule to amend swap data recordkeeping. Federal register amendments to swap data recordkeeping. Us regulator extends cftc swap data reporting relief.
Yesterdays relief has been announced in a noaction letter. Federal register amendments to swap data recordkeeping and. Existing swap data reporting regulations are concentrated on parts 43, 45 and 49 of the cftcs regulations, which focus respectively on governing realtime public reporting requirements, swap data recordkeeping and reporting requirements, and requirements specific to swap data repositories sdrs. Cftc commissioner brian quintenz recommended various improvements to the swap data reporting regime, including advancing global harmonization efforts, streamlining reporting requirements and enhancing reporting accuracy. Active involvement of a swap dealer oversight body with policies and procedures for monitoring swap risks, including risk tolerance levels, and regular reporting up the chain. Nfa financial requirements section 17 requires swap dealers sd and major swap participants msp to file the financial, operational, risk management and other information required by nfa in the form and manner prescribed by nfa.
There is no question that something needs to be done about swap data reporting. The us commodity futures trading commission cftc is taking steps to clean up terabytes of uninterpretable data being reported to the agency under swap reporting rules but commodities market participants complain that the agencys attempts to standardise certain contracts for reporting purposes are unfeasible. October 10, 2012 cftc staff responds to questions on start of swap data reporting washington, dc today, commodity futures trading commission cftc staff is responding to questions from market participants and other interested parties on the timing of when counterparties will be required to report swap pricing and transaction data as required under part 45 of the commissions regulations. Cftc issues noaction relief on cleared swap data reportingby practical law finance related content published on 05 jan 2017 usa nationalfederalthe cftc has issued two noaction letters extending relief to cftcregistered derivatives clearing organizations and other reporting entities from certain doddfrank title vii swap data reporting obligations for cleared swaps.
Cftc extends swaps valuation data reporting relief news. Dtcc data repository llc will serve as a data repository for the interest rate, credit, equity, foreign exchange and other commodity asset classes. Cftc announces beginning of realtime reporting and swap. Commodity futures trading commission cftc today approved a final rule the final rule that amends existing swaps reporting regulations in order to provide additional clarity to swap counterparties and registered entities regarding their. On november 1, 2011, an application was submitted on behalf of global trade repository for commodities llc gtr. Bloombergs swap data repository bsdr llc is fourth sdr to. Response to the cftcs certain swap data repository and. The commodity futures trading commission the cftc has proposed rules for realtime reporting and public dissemination of swap transaction and pricing data in proposed part 43 part 431 of its regulations and for nonrealtime reporting of swap data, which would not be publicly disseminated, in. Cftc proposes block size rules for swaps march 12, 2012 were a block trade or large notional offfacility swap.
Jul 11, 2014 the commodity futures trading commission s division of market oversight issued a socalled noaction letter extending relief to swap dealers and major swap participants from the obligation to report valuation data for cleared swaps as required under the commissions doddfrank regulations. For part 45 swap continuation data reporting only, if neither party is a u. The changes aim to ensure that the weekly swaps report represents. Commodity futures trading commission cftc unanimously approved two proposed rules to revise its regulations relating to swap data. The definitions set forth in the cftc swaps report data dictionary are provided for the purpose of enhancing the users understanding of the data presented in the report tables. Reporting rules were originally put in place during 2011. Overview of reporting and recordkeeping chatham financial. Whether the cftc can put those words into practice remains to be seen. In short, the cftc relies on organizations to report accurate data. The cftc division of market oversight dmo extended previously granted noaction relief to certain nonu. The ofr and the commodity futures trading commission cftc want to promote the use of data standards in swap data reporting to assure data quality and utility. Congress enacted the doddfrank act in response to the financial crisis of 2008 with the explicit goal of preventing a repeat of those events by making markets safer through greater transparency. On january 1, 20, certain swap market participants began reporting new and historical swap data to sdrs pursuant to 17 cfr part 45, and the commission began the process of analyzing these new data and incorporating them into the cftc swaps report. Swap data repositories are required to comply with data standards set by the cftc, including realtime public reporting of swap transaction data to a disseminator such as a derivatives clearing organization or a swap execution.
The us commodity futures trading commission cftc has 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. Commodity futures trading commission three lafayette centre. Cftc issues noaction relief on cleared swap data reporting. In addition to providing public data on trading volume, open contracts, futures delivery.
Part 45 swap data recordkeeping and reporting requirements. The phased compliance schedule for swap data reporting to sdrs adopted by the. The commission expressed that they anticipate reopening the. Market participant swap data reporting, dissemination. Nfa adopted this requirement to specify nfas general authority to collect. Swap data reporting is a us obligation on swap dealers and endusers to report overthecounter derivatives transactions to swap data repositories. Markitserv response to the cftc regarding 1 proposed rule on swap data repositories.
Commodity futures trading commission cftc approved a final rule that amends existing swaps reporting regulations in order to provide more clarity to swap counterparties and registered entities regarding. Aug 19, 2015 the commodity futures trading commission cftc or commission today proposed amendments to its rules relating to swap data reporting in connection with cleared swaps the proposal. Cftc need not walk the talk on swap data harmonisation. Data from these reports are available for public download and use.
Quintenz asserted that there is still room for improvement in swap data reporting. This page contains forms and other documents related to swap data repositories sdrs. Comments for general cftc comments for dmo swap data. Data reporting for swaps in a swap asset class not accepted by any. Cftc to commence new examination program targeting swap. Among other changes, the proposals would require an sdr to distribute to each reporting counterparty on a regular basis an open swaps report. Certain swap data repository and data reporting requirements. The cftc publishes a variety of reports for reporting on the state and health of the derivatives markets under its jurisdiction. Response to the cftcs certain swap data repository and data. If an sdmsp is the reporting party, the following applies for swap creation and swap continuation data reporting.
Monthly risk data reporting requirements for swap dealers. Reportable derivatives include swaps defined as interest rate swaps, foreign exchange swaps and forwards, indexbased credit default swaps, agricultural and commodity swaps, indexbased total return swaps and all options based on a rate or. Cftc extends effective date for swap regulation and. Cftc regulations that correspond to entitylevel requirements as cftc regulations 1. Together, we announced in march a memorandum of understanding for a joint project to enhance the quality, types, and formats of data collected from registered swap data repositories. Certain recordkeeping and reporting requirements finalized also, the cftc held an open meeting on december 20 at which it unanimously approved the issuance of two final rules pertaining to. In one of the orders, the cftc premised its charges against the swap dealer.
Data quality in swap data repositories office of financial. Washington, dc on monday, september 30, 2019, the cftc filed and settled charges against societe generale international limited, a provisionally registered swap dealer, for failing to comply with its swap data reporting obligations as a swap. The iso 20022 standard is being embraced by supervisors across the world as a preferred format for data swap and related reporting purposes because the data model which lies at the heart of the standard is the ideal reference point to help regulators, market overseers and reporting firms to harvest, aggregate and interpret data which is. Cftc reproposes position limits and aggregation standards. Cftc delays swap package execution as six financial.
These new entities were created by the doddfrank wall street reform and consumer protection act doddfrank act to provide a central facility for swap data reporting and recordkeeping. Comments on the proposal must be submitted to the cftc 60 days after the proposal is published in the federal register. A party to an anonymous trade executed on a sef or designated contract market dcm cannot access information in swap data repositories in order to obtain the identity of its counterparty, officials say. Commodity futures trading commission said the company violated multiple swap data reporting rules because of a system outage and had inadequate. Swap data repository marketswiki, a commonwealth of market. The cftc swaps report represents only those swaps that are reported to the cftcs registered sdrs by swap market participants.
The whistleblower program provides monetary incentives to individuals who. June 14, 2016 cftc approves final rule to amend swap data recordkeeping and reporting requirements for cleared swaps washington, dc the u. Definitions do not state or suggest the views of the commission concerning the legal significance or meaning of any word or term and no definition is intended to. The cftc began reporting swap data in the beginning of 20, and release the weekly figures every wednesday.
The reporting obligations of registered entities and swap. The two chief costdriver categories in this finalrulemaking are recordkeeping and. Sec, cftc to host joint september roundtables on swap and. Cftc sues deutsche bank over swaps reporting failures law360. These include the commitment of traders report, cotton on call and the weekly swaps report. Cftc proposes amendments to part 45 swap data recordkeeping. The relief has stated that the division will not recommend that the cftc take an enforcement action against nonus swap dealers or a nonus msp in australia, the ue, canada, switzerland or japan. All swap data for a given swap are reportable to a single sdr, which is the sdr to which the first report of required swap creation data is made. The relief was originally granted by cftc letter 75 and most recently extended by cftc letter 1679. The commission, in turn, has promulgated the part 49 regulations implementing section 21. The us commodity futures trading commission s cftc acting chairman, mark p. Cftc issues proposed amendments to swap data recordkeeping. Market participants may choose to provide a daily snapshot of the primary economic terms of the swap or, instead, to report upon any life cycle eventany event that would.
With respect to swap counterparties, the compliance dates provided in part 45 of the cftcs regulations call for. The initial relief was set by the cftc back in november 2016. The commodity futures trading commission commission or cftc is adopting final regulations relating to swap data reporting in connection with cleared swaps for swap data repositories sdrs, derivatives clearing organizations dcos, designated contract. Cftc swap data recordkeeping and reporting requirements. Cftc proposes amendments to swap data reporting requirements. December 21, 2010 cftc reporting and public dissemination. Aug 24, 2011 finalized swap data rules, with links to originallyproposed rule cftc final rule. The cftc swaps report complements the data made available to the public. The new director of the cftcs division of swap dealer and intermediary oversight dsio, joshua sterling, recently announced a new examination program set to commence in the first quarter of 2020.
In light of the cftcs recent announcement, swap dealers and cpos subject to examination should consider conducting risk assessments to prepare for the upcoming cftc exams. Cftc commissioner encourages swap data reporting enhancements. Swap data recordkeeping and reporting requirements for cleared swaps, 2016. Aug 18, 2016 deutsche bank ag is facing sanctions after the u. Cftc orders societe generale international limited to pay. Generally, the data in the cot reports is from tuesday and released friday. Sdrs are required to register with the cftc and comply with rules promulgated by the cftc, including realtime public reporting of swap transaction and pricing data. Cftc adopts swap data recordkeeping and reporting requirements. Cftc swap reporting regime rules harvard university.
Although sdr reporting and ltr are classified as entitylevel. Finally, additional swap transaction data reporting. Swap creation data for swaps executed on a sef or dcm, the sef or dcm must report the primary economic terms of a swap and confirmation data swap creation data as soon as technologically practicable after execution of the swap. The reporting obligations of swap counterparties with respect to swaps. The cftc receives the data from the reporting firms on wednesday morning and then corrects and verifies the data for release by friday afternoon. This week, the 65 provisionally registered swap dealers began realtime reporting of interest rate and credit index swap transactions data to swap data repositories sdrs. Cftc staff responds to questions on start of swap data reporting. Cftc swap data recordkeeping and reporting requirements for. A swap data repository sdr is an entity created by the doddfrank act in 2010 in order to provide a central facility for swap data reporting and recordkeeping. Title vii of the doddfrank act, along with the rules promulgated by the commodity futures trading commission cftc or the commission, institute new swap data recordkeeping and reporting requirements for otc derivatives that are regulated as swaps.
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