SEC Division Of Trading And Markets Issues FAQ On SBS Reporting – Finance and Banking

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SEC Division Of Trading And Markets Issues FAQ On SBS Reporting

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In a newly issued FAQ, the SEC Division of Trading and Markets
addressed implementation questions on Regulation SBSR (“Regulatory
Reporting and Public Dissemination of Security-Based Swap

The Division stated, among other things, that:

  • security-based swap (“SBS”) market participants that
    rely on the SEC’s no-action statement permitting reporting
    in accordance with CFTC Rules may not also rely on delaying
    reporting under the 24-hour requirement of SEC Rule
     (“Interim timeframe for reporting”);

  • a registered clearing organization is a self-regulatory
    organization, and, therefore, must enforce compliance by its
    members with its rules pursuant to SEC Rule
     (“Policies and procedures to support reporting
    compliance”), including obtaining all required trade
    information (such as data to be reported as to an SBS later

  • swap data repositories (“SDRs”) may offer
    functionality to report historical SBSs before the compliance date
    of April 14, 2022 (which could be used, e.g., in the
    case of a “historical” SBS that has a life-cycle event
    after the November 8, 2021, compliance date for reporting new SBSs
    to an SDR);

  • firms may not “double report” an SBS (i.e.,
    firms must agree who will report, including for historical

  • even as to historical SBSs, firms must attempt to ascertain
    whether U.S. personnel were involved in “arranging,
    negotiating, or executing” the transaction in order to
    determine whether reporting is required or who must report;

  • firms relying on the no-action statement to determine whether
    reporting is required, may, in certain circumstances, look to
    whether the transaction would need to be reported based on relevant
    CFTC rules; and

  • the SEC will follow the CFTC interpretive guidance on CFTC
    Rules Parts 43 (“Real-Time Public
    Reporting”) and 45 (“Swap Data Recordkeeping and
    Reporting Requirements”) as to persons who are complying with
    the CFTC’s trade reporting rules rather than those of the


Given the deadlines for reporting coming up in roughly two
weeks, firms should closely review the guidance. Certain aspects of
this FAQ suggests diligence obligations as to SBSs that may be
surprising to some.

Primary Sources

  1. Frequently Asked Questions on Regulation SBSR

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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