SEC sets rules to increase transparency in the Swap market

The US Securities and Exchange Commission (SEC) today adopted two new sets of rules that will require security-based swap data repositories (SDRs) to register with the SEC and prescribe reporting and public dissemination requirements for security-based swap transaction data.  The SEC also proposed certain additional rules, rule amendments and guidance related to the reporting and public dissemination of security-based swap transaction data.

The new rules are designed to increase transparency in the security-based swap market and to ensure that SDRs maintain complete records of security-based swap transactions that can be accessed by regulators.

SEC Chair Mary Jo White:

These rules go to the core of derivatives reform by establishing a strong foundation for transparency and efficiency in the market. They provide a powerful framework for trade reporting and the public dissemination of information that addresses blind spots exposed by the financial crisis.

The rules require an SDR to register with the SEC and set forth other requirements with which SDRs must comply.  The rules also provide an exemption from registration for certain non-U.S. SDRs when specific conditions are met.

The new rules will become effective 60 days after they are published in the Federal Register.

To see the SEC announcement click here.

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