SEC asks Congress to remove Dodd-Frank swap data barriers


The Security and Exchange Commission’s (SEC) head of internal affairs, Ethiopis Tafara, said that Congress should amend the Dodd-Frank Act and remove barriers to global regulators sharing data about the $708 trillion swaps market.

Under Dodd-Frank, regulators from other nations are required to indemnify swap-data repositories and U.S. regulators against litigation costs before they may receive the data. The SEC says this may undermine regulators’ access to data kept in various repositories.

Tafara’s testimony before the House Financial Services subcommittee hearing said that the requirement “interferes with access to essential information” because most foreign governments do not have the proper authority to provide indemnification. “In removing the indemnification requirement,” Tafara said, “Congress would assist the SEC, as well as other U.S. regulators, in securing the access it needs to data held in global trade repositories.”

Dodd-Frank is intended to increase derivatives transparency, by requiring the reporting of price and trade information to data repositories.

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Photo credit: Tricia Wang

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About the Author

Felix Shipkevich
Mr. Shipkevich’s practice focuses on regulatory, transactional, and enforcement matters in the fields of futures, commodities, and derivatives. He works with Futures Commission Merchants (FCMs), Retail Forex Exchange Dealers (RFEDs), Introducing Brokers (IBs), Commodity Pool Operators (CPOs), Commodity Trading Advisors (CTAs), Swap Dealers (SDs), Swap Execution Facilities (SEFs), and domestic and offshore hedge funds. Mr. Shipkevich guides clients on procedures related to registration with the U.S. Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), as well as domestic and international regulators in local jurisdictions. Mr. Shipkevich prepares and helps implement compliance, anti-money laundering (AML), and Electronic Trading Systems (ETS) procedures for clients in the commodities and derivatives fields.

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