On May 7, 2021, the SEC announced that it has approved the registration of its initial security-based swap data repository (SDR). With recent registration of DTCC Data Repository (US), LLC (DDR), the security-based swap market now has the first SDR (pursuant to Section 13(n)(1) of the Securities Exchange Act of 1934) capable of accepting transaction reports. DDR will operate as a registered SDR for security-based swap transactions in the interest rate, equity, and credit derivatives asset classes.
Implementing Regulation SBSR fulfills important requirements set forth in the Dodd-Frank Act, in as much as it:
- establishes a centralized database of security-based swap transactions, which is an important reform that facilitates understanding these markets (for surveillance and enforcement)
- facilitates public reporting of security-based swap transactions, which brings much-needed transparency to these markets
The recent measures taken by the SEC set November 8, 2021 as the first compliance date for Regulation SBSR, which: 1) oversees regulatory reporting and publication of security-based swap transactions; 2) is an important part of the security-based swap regulatory regime established by Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and 3) provides for the reporting of security-based swap data to registered SDRs and for public distribution of transaction, volume, and pricing information.
Pursuant to Regulation SBSR, this November 8 compliance date represents the first Monday that is the later of the following:
- six months after the May 7, 2021 registration date for the first SDR that can accept transaction reports in a particular asset class
- one month after the October 6, 2021, compliance date for registration of security-based swap entities
Sources:
SEC Approves Registration of First Security-Based Swap Data Repository; Sets the First Compliance Date for Regulation SBSR (sec.gov)
Security-Based Swap Data Repositories; DTCC Data Repository (U.S.), LLC; Order Approving Application for Registration as a Security-Based Swap Data Repository (sec.gov)
