SEC IMPLEMENTS KEY STEP FOR DERIVATIVES OVERSIGHT 11 YEARS AFTER DODD-FRANK
RICK STEVES, 11 May 2021
The U.S. Securities and Exchange Commission (SEC) has approved the DTCC Data Repository (U.S.) application to operate as a registered security-based swap data repository (SBSDR).
This is a key step in completing the implementation of derivatives oversight in the U.S., which was set out in Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). Dodd-Frank divided the regulatory oversight of derivatives between the SEC for security-based swaps (SBS; those that reference single security or loan or a credit default swap that references a narrow-based index) and the Commodity Futures Trading Commission for all other swaps.
Gary Gensler, SEC Chair, said: “Implementing Regulation SBSR fulfills an important mandate under the Dodd-Frank Act. A centralized database of security-based swap transactions is an essential reform to better understanding these markets, for surveillance, and for enforcement. The data repository also will facilitate public reporting of security-based swap transactions, bringing much-needed transparency to these markets.”
DDR, part of DTCC’s Global Trade Repository (GTR) service, will function as a registered SBSDR for transactions in the equity, credit, and interest rate derivatives asset classes, seamlessly reporting transactions directly to the SEC.
Kate Delp, DTCC Executive Director and General Manager at DDR, added: “We are pleased to receive SEC approval of DDR’s application as an SBSDR, and look forward to offering security-based swap transaction reporting capabilities within our global platform. This marks an important step forward in continuing to provide greater transparency in the OTC derivatives market.
“We are proud to extend our trade reporting capabilities in the U.S. and are committed to working with our clients to help them prepare for the reporting date. Now is the time to begin to implement and test trade reporting solutions as the reporting compliance date draws near.”
