CFTC to Review Rules Addressing Swaps Trading Data

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By Richard Hill

The CFTC is reviewing its swap data reporting regulations in an attempt to ensure it receives better trading information more efficiently, the agency said July 10.

The Commodity Futures Trading Commission’s Division of Market Oversight issued a “ roadmap” in conjunction with the review that identifies future steps, including working with swap data repositiories (SDRs) to set up processes for rejecting reports with missing or invalid information. The roadmap is essential “because if you don’t know where you’re going, you’re never going to get there,” acting Chairman J. Christopher Giancarlo said in a statement.

The initiative will seek to identify best ways for swaps counterparties to confirm the accuracy of data held by SDRs. The agency also will seek to clarify what data must be reported to an SDR.

SDRs

SDRs were created under the Dodd-Frank Act to act as central facilities for receiving swaps data from market participants and distributing the information to regulators. They include BSDR LLC, which is owned by Bloomberg LP, of which Bloomberg BNA is an affiliate.

Critics, including Giancarlo, have complained that there is no standard way for swap execution facilities, clearinghouses and other third parties to prepare and submit data to SDRs, making the resulting information inconsistent and hard to analyze. Global regulators also have cited “significant challenges” with the quality of swaps data.

Comments on the review are due by Aug. 21.

The CFTC said it plans to complete the project and implement any changes by the end of 2019. It said that timeline will allow it to consult with international peers and give market participants time to build and test new systems.

To contact the reporter on this story: Richard Hill in Washington at rhill@bna.com

To contact the editor responsible for this story: Phyllis Diamond at pdiamond@bna.com

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