CFTC unanimously approves four final regulations and one proposed rule supplement - 24 September 2020

The CFTC voted 5-0 to finalize a number of rules which aim to improve swap data reporting, as well as a supplemental measure that furthers the modernization of the agency’s bankruptcy regulations.

CFTC Chairman Heath Tarbert led off a virtual open meeting that lasted over five hours, without interruption, observing that "data is the lifeblood of our markets". Those comments were a prelude to an agenda-packed meeting where the Commission unanimously approved three final rules to revise CFTC regulations for swap data reporting, dissemination, and public reporting requirements calculated to improve the quality, accuracy, and completeness of the data reported to the agency. The Commission also unanimously approved a final rule which permits derivatives clearing organizations (DCOs) organized outside of the U.S. to be registered with the CFTC. Finally, the Commission unanimously approved a supplemental notice of proposed rulemaking regarding amendments to the CFTC’s regulations that govern bankruptcy proceedings for commodity brokers.

Amendments to real-time public reporting requirements (Part 43). This final rule revises CFTC regulations for real-time public reporting and dissemination requirements for swap data repositories (SDRs), DCOs. swap execution facilities (SEFs), designated contract markets (DCMs), swap dealers (SDs), major swap participants (MSPs), and swap counterparties that are neither SDs nor MSPs.

Amendments to swap data recordkeeping and reporting requirements (Part 45). This final rule revises CFTC regulations that establish swap data recordkeeping and reporting requirements for SDRs, DCOs, SEFs, DCMs, SDs, MSPs, and swap counterparties that are neither SDs nor MSPs. This rule will give the CFTC access to uncleared margin data for the first time thereby significantly improving the agency’s ability to monitor for systemic risk.

Amendments to regulations relating to certain swap data repository and data reporting requirements (43, 45, and 49 verification). This final rule seeks to improve the accuracy of data reported to, and maintained by SDRs, and provides enhanced and streamlined oversight of SDRs and data reporting generally. Among other changes, the amendments modify existing requirements for SDRs to establish policies and procedures to confirm the accuracy of swap data for both counterparties to a swap. Additionally, the amendments update existing requirements related to corrections for data errors and certain provisions related to SDR governance.

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