US regulators seek input on harmonising swap market data reporting

The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have issued a joint request for public comment regarding the harmonisation, modernisation, and streamlining of data reporting requirements for security-based swap and swap markets. The agencies aim to reduce operational complexity and costs for market participants while preserving market transparency and oversight.

SEC Chairman Paul S. Atkins stated that extensive data collection, if not appropriately calibrated, can hinder rather than enhance understanding and accountability. He emphasised the need to lower costs while protecting information integrity, noting that working closely with the CFTC allows regulators to collect data necessary to meet statutory objectives under a harmonised reporting regime.

CFTC Chairman Michael S. Selig highlighted ongoing efforts to foster interagency cooperation and cut red tape for registrants. He expressed pride in collaborating with Chairman Atkins to streamline swap data reporting, stating that the agencies look forward to hearing from market participants on ways to reduce costs while continuing to collect the data required for market oversight responsibilities.

The request for comment is intended to assist the agencies in evaluating whether changes to the design, scope, and structure of data reporting requirements would lead to greater alignment between their respective frameworks. The SEC and CFTC seek input to enhance market transparency, reduce unnecessary operational complexity, promote data quality, and improve regulatory oversight.

This initiative operates within the regulatory framework established by the Dodd-Frank Act, which mandates distinct statutory responsibilities for each agency. The regulators are seeking to preserve these distinct mandates while achieving harmonised reporting regimes. The agencies are currently seeking public input on operational, technological, and policy implications, as specific changes to the reporting requirements are not yet defined.

The public comment period will remain open for 60 days following publication of the request in the Federal Register. The agencies have not specified an exact timeline for any resulting regulatory updates, focusing instead on gathering feedback to inform potential future changes.