03.20.2014
By Terry Flanagan

CFTC Seeks Swap Data Comments

The Commodity Futures Trading Commission has approved for publication in the Federal Register a request for public comment on the Commission’s swap data recordkeeping and reporting requirements under part 45 and related provisions.

Part 45 requires reporting counterparties and reporting entities to submit swap transaction data to swap data repositories via electronic reporting to enable the Commission to perform a range of market integrity, risk monitoring and other supervisory functions. The request for comment was developed by the Interdivisional Working Group (IDWG) formed by the Commission on January 21, 2014, to review the swap data reporting rules and make recommendations for resolving reporting challenges.

“To do its job the Commission must have accurate data and a clear picture of swaps market activity,” said Acting Chairman Mark Wetjen. “I thank the staff for their hard work in developing this request for public comment on ways to improve the Commission’s data collection and quality standards. I am confident that the responses to this release will inform the Commission as it considers how best to ensure that it receives the information necessary to effectively oversee the derivatives marketplace.”

Part 45 requires reporting counterparties and reporting entities to submit swap transaction data to swap data repositories via electronic reporting to enable the Commission to perform a range of market integrity, risk monitoring and other supervisory functions. The request for comment was developed by the Interdivisional Working Group (IDWG) formed by the Commission on January 21, 2014, to review the swap data reporting rules and make recommendations for resolving reporting challenges.

In order for the Commission to enforce the significant Dodd-Frank reforms, the agency must have accurate data and a clear picture of activity in the marketplace. We’ve seen an incredible shift to a transparent, regulated swaps marketplace, and this is an appropriate review to ensure the data we are receiving is of the best possible quality so the Commission can effectively oversee the marketplace.

“I commend the cross-divisional data team’s effort to fix our reporting rules and enhance the Commission’s ability to use its data,” said commissioner Scott O’Malia. I hope that the data team and the Commission will carefully evaluate market participants’ comments and recommendations and develop workable solutions to improve our data reporting regime.”

O’Malia urged market participants to carefully review the Commission’s questions, submit comments, and alert the Commission to other data reporting issues that have not been included in this request for comment. “This comment period is a critical step in the Commission’s effort to improve its data utilization,” he said. “I encourage all market participants to help the Commission improve its data reporting regime.”

The request for comment seeks public input on approximately 70 questions addressing such topics as the reporting of primary economic terms, confirmation and continuation data; the manner in which the reporting rules address different transaction types, business models and data flows present in swaps markets; the reporting of cleared swaps; and data harmonization. Comments received will inform the Commission’s ongoing efforts to improve swap transaction data quality and determine whether and how the swap data reporting rules should be enhanced to ensure effective reporting.

The comment period will be open for 60 days from the date of publication of the request for comment in the Federal Register.

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