Commodity Futures Trading Commission
Office of Public Affairs
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
www.cftc.gov
Q & A – Registration and Regulation of Swap Data Repositories
What is the goal of the proposed rulemaking?
This notice of proposed rulemaking implements Title VII of the Dodd-Frank Act, which in Section 728 establishes swap
data repositories (SDR) as a new registered entity under the Commodity Exchange Act. Registered SDRs will collect and
maintain data and information related to swap transactions and to make such data and information directly and
electronically available to regulators as prescribed by the Commission. In performing these functions, SDRs must
become registered with the Commission and must comply with core principles, duties and other requirements specified
in new Section 21 of the CEA and implemented by the Part 49 Rules.
Which entities must comply with Part 49 of the Commission’s regulations?
Section 728 of the Dodd-Frank Act makes it unlawful for any person to make use of the mails or any means or
instrumentality of interstate commerce to perform the functions of a swap data repository unless registered with the
Commission. Any person that is required to be registered as an SDR must register with the Commission regardless of
whether that person is also licensed as a bank or registered with the Securities and Exchange Commission as an SDR.
How is SDR registration effected?
The Part 49 rules prescribe procedures and substantive requirements for registration as an SDR:
• Applicants must file electronically for registration on new Form SDR, which consists of instructions, general
questions and a list of exhibits (documents and supporting information) necessary for a determining whether an
applicant is able to demonstrate compliance with the core principles, statutory duties and regulations
promulgated thereunder by the Commission.
• The Commission will review an application for registration as an SDR within 180 days of receipt of a completed
submission of Form SDR; the Commission may extend the review period for good cause.
• The Commission will grant the application of an SDR if it finds that the SDR is appropriately organized, and has
the capacity, to ensure the prompt, accurate and reliable performance of its functions as an SDR, comply with all
applicable provisions of the CEA and Commission regulations, carry out its functions in a manner consistent
with the purposes of Section 21 of the CEA and Commission regulations thereunder, and operate in a fair,
equitable and consistent manner.
• Upon request by an applicant, the Commission may grant provisional registration to an SDR as an interim
implementation provision.
• The Part 49 rules further prescribe procedures for revocation of an SDR registration and for registration of
successor entities.
What provisions are made for SDRs located outside the United States?
SDRs located outside of the United States must certify on Form SDR and provide an opinion of counsel that the SDR is
able, as a matter of law, to provide the Commission with prompt access to its books and records and can submit to on-
site inspection and examination by the Commission.
What statutory duties apply to registered SDRs?
Commodity Futures Trading Commission ♦ Office of Public Affairs ♦ 202-418-5080
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The Dodd-Frank Act prescribes core duties applicable to SDRs. Part 49 establishes regulations implementing each of
these statutory requirements.
• Acceptance of data: an SDR must establish, maintain and enforce policies and procedures for the reporting of
swap data to it, and shall accept and promptly record all data in its selected asset class. If a registered SDR
accepts swap data of a particular asset class, it must accept data from all swaps of that asset class.
• Confirmation of data accuracy: a registered SDR must establish policies and procedures to ensure the accuracy
of swap data and other regulatory information required to be reported.
• Recordkeeping: a registered SDR must maintain its books and records in accordance with the requirements of
the Part 45 regulations. A registered SDR that elects to accept and disseminate swap transaction and pricing data
in real time must comply with the real time public reporting and recordkeeping requirements prescribed in Part
43.
• Provide direct electronic access to the Commission or its designee (including another registered entity) and
provide information in such form and at such frequency as the Commission may prescribe to comply with the
public reporting requirements in section 2(a)(13) of Title VII of the Dodd-Frank Act and the applicable Part 43
Regulations.
• Monitor, screen and analyze swap data in such manner as the Commission prescribes and establish and maintain
sufficient IT, staff and other resources to enable it to fulfill the requirements of the Part 49 regulations in the
manner prescribed by the Commission.
• Establish, maintain and enforce written policies and procedures reasonably designed to protect the privacy and
confidentiality of all SDR information that is not subject to real-time public reporting pursuant to Part 43 of the
Commission’s regulations. These shall include safeguards and procedures to prevent the misappropriation or
misuse of material protected by Section 8 of the CEA, other SDR information, or intellectual property.
• Make available all data obtained by the SDR to specified foreign and domestic regulators. The Part 49
regulations establish specific procedures and conditions under which particular regulators and others may obtain
access to data maintained by an SDR.
• Adoption of emergency procedures
What core principles govern SDRs?
The Dodd-Frank Act established three core principles applicable to SDRs. They are:
• Antitrust Considerations: unless appropriate to achieve the purposes of the Act, a registered SDR shall avoid (i)
adopting any rule or taking any action that results in any unreasonable restraint of trade; or (ii) imposing any
material anticompetitive burden on trading, clearing or reporting swaps.
• Governance Arrangements: Registered SDRs shall establish governance arrangements. These are prescribed in
Regulation 49.18.
• Conflicts of Interest: Registered SDRs shall manage and minimize conflicts of interest and establish processes
for resolving such conflicts. These are set forth in Regulation 49.19.
What additional requirements will be imposed on SDRs?
The Commission proposes to prescribe additional duties related to the following:
• Adoption of system safeguards/business continuity/disaster recovery plans
• Maintenance of sufficient financial resources
• Disclosure requirements setting forth the risks and costs associated with using the services of an SDR
• Establishing provisions ensuring non-discriminatory access and fees
Commodity Futures Trading Commission ♦ Office of Public Affairs ♦ 202-418-5080
