On December 31, 2012, registered swap dealers (SDs) and designated contract markets (DCMs) began reporting swap transaction and pricing data to registered swap data repositories (SDRs). The reporting deadline has been divided between different asset classes. Effective December 31, 2012, all swap transactions in the interest rate and credit asset classes, executed on or pursuant to the rules of a DCM as well as swaps executed ‘‘off-facility” in which at least one party to the swap is a registered SD, are being reported to registered SDRs pursuant to Parts 43 and 45 of the Commodity Futures Trading Commission’s (“CFTC”) regulations. Further, SDRs for the interest rate and credit asset classes are also publicly disseminating real-time swap transaction and pricing data for these swap transactions pursuant to Part 43.
On February 28, 2013, reporting begins for swap transactions in the remaining three asset classes (equity, foreign exchange, and other commodities) executed on or pursuant to the rules of a DCM, as well as swaps executed ‘‘off-facility” in which at least one party to the swap is a registered SD. Major swap participants (MSPs), to the extent any register, will also begin reporting swaps in all five asset classes. Swap counterparties that are non-SDs/MSPs, but are required to report a swap with another Non-SD/MSP, do not have to comply with the reporting requirements until April 10, 2013.
As of Monday, December 31, 2012, there were 65 entities that filed their applications as swap dealers and became provisionally registered. This group consists of the largest financial institutions both domestically and internationally that deal in swaps with U.S. persons (a list of filers is included in the CFTC release linked above). This group exceeded the de minimis level of swap dealing activity in October, the first month in which the registration requirement applied to these entities. Going forward, other entities are expected to register once they exceed the de minimis threshold.
For help in determining reporting or registration requirements or any other compliance topic, please contact us at (619) 278-0020 to schedule a consultation.