In apparent response to an Inspector General's report calling existing swaps data "essentially unsuable", the CFTC has announced a process to change and improve those rules, and opened a comment period about new proposed rules that will close in September.
The U.S.’s top derivatives regulator on Monday said it plans to rewrite rules governing the reporting of swaps transactions in an effort to make data more consistent across firms and give regulators a clearer view of market conditions. The Commodity Futures Trading Commission has been working to reconcile post-trade reporting data from four privately-owned data repositories as part of an effort to identify and address potential sources of systemic risk in the $483 trillion global swaps market. While data repositories, which are approved by regulators, must submit post-trade data to the CFTC, there are no firm guidelines governing data standardization. The CFTC’s new effort attempts to change that. The announcement kicks off a 40-day comment period, which will be followed by specific rule proposals. The CFTC said it was aiming for full industry implementation by the end of 2019.