Rules Increase Transparency in the Securities-Based Swap Market
The Securities and Exchange Commission today announced that it has adopted amendments and guidance related to rules regarding the regulatory reporting and public dissemination of security-based swap transactions, known as Regulation SBSR. The new rules and guidance are designed to increase transparency in the security-based swap market.
The rules and guidance implement mandates under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
“This action ensures the public’s accessibility to transaction information, extends the scope of Regulation SBSR to additional entities and transactions and completes an important mandate under Title VII of the Dodd-Frank Act,” said SEC Chair Mary Jo White. “By providing for the regulatory reporting and public dissemination of security-based swap transactions, Regulation SBSR will bring much-needed transparency to the security-based swap market.”
Among other things, the final rules:
Assign the reporting duties for platform-executed security-based swaps that will be submitted to clearing and for security-based swaps resulting from the clearing process
Establish regulatory reporting and public dissemination requirements for certain cross-border security-based swaps
Prohibit registered swap data repositories (SDRs) from imposing fees or usage restrictions on the security-based swap transaction data that Regulation SBSR requires them to publicly disseminate.
The Commission also is issuing guidance with respect to the application of Regulation SBSR to security-based swaps resulting from prime broker arrangements and from the allocation of cleared security-based swaps.
The rules also establish a new compliance schedule for the portions of Regulation SBSR for which the Commission has not previously specified compliance dates. Compliance for these portions of Regulation SBSR will be phased in over a period of months, beginning on the first Monday that is the later of: six months after the date on which the first SDR that can accept transaction reports in an asset class registers with the Commission; or one month after security-based swap dealers and major security-based swap participants are required to register with the Commission.