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CFTC Releases Request for Comment for Swaps Data Overhaul

To boost comprehensive reporting of swap-market data, the CFTC released a request for comment for improved solutions.

Citing inability to fully understand swaps-market data, the Commodity Futures Trading Commission has requested comments on ways to improve the way information is reported to swap data repositories (SDRs).

The request for comment on swap data recordkeeping and reporting requirements falls under part 45 and related provisions of the Dodd-Frank act. It requires reporting entities to electronically submit swap transaction data to DSRs for the CFTC's risk monitoring and market supervision.

“The data we’ve received frankly hasn’t been clean enough for us to make sense of it as easily and as quickly as we need to be able to do,” said Mark Wetjen, CFTC acting chairman at a U.S. Chamber of Commerce conference in Washington. “We’re prepared to make corrections if we need to.”

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Republican CTFC Commissioner Scott D. O’Malia released a statement supporting the request for comment and adds, "I hope that the data team and the Commission will carefully evaluate market participants’ comments and recommendations and develop workable solutions to improve our data reporting regime."

The request for comments seeks input on approximately 70 questions on ways to change how and what information is reported. The commenting period will be open for 60 days. Comments are to be reviewed by the Interdivisional Working Group (IDWG) members who will then make recommendations to the CFTC by the end of July.

According to Finextra, the questions address topics including: The reporting of primary economic terms, confirmation and continuation data, the manner in which the reporting rules address different transaction types, business models and data flows present in swaps markets, the reporting of cleared swaps; and data harmonization. Becca Lipman is Senior Editor for Wall Street & Technology. She writes in-depth news articles with a focus on big data and compliance in the capital markets. She regularly meets with information technology leaders and innovators and writes about cloud computing, datacenters, ... View Full Bio

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