DERIVSOURCE: White House Reviews SEC and CFTC Steps to Harmonize Swaps Reporting
The White House Office of Management and Budget says the SEC and CFTC are in a “prerule” stage reviewing how swaps and security-based swaps are reported, aiming to better coordinate requirements and allow public input before a formal proposal. SEC relief letting some firms follow CFTC rules expires in 2029, and industry groups urged harmonisation. Rulemaking would require regulator votes and public comment.
Potential harmonization of swaps/SBS reporting could change compliance workflows and data-repository demand dynamics for ICE’s Trade Vault.
ICE Trade Vault LLC, an ICE subsidiary, asked regulators to synchronize swaps and security-based swaps reporting rules.
Limited near-term impact; watch for rulemaking timeline and any operational/fee implications.
Background
SEC and CFTC have different reporting requirements for swaps vs security-based swaps; some SEC relief allowing CFTC compliance is set to expire in 2029.
Why it matters
A coordinated, harmonized reporting regime would likely require dealers and data repositories to adjust reporting processes, potentially affecting costs, operational risk, and data flows.
Market relevance
This is a regulatory coordination step that could reshape derivatives reporting obligations, but it is not yet a finalized rule.
Market effects
Could reduce cross-regulatory reporting friction for derivatives market infrastructure and dealers, but details are not yet proposed.
US-focused regulatory process; may influence global derivatives reporting expectations and compliance planning.
Harmonization effort targets alignment with other jurisdictions’ approaches, potentially affecting cross-border derivatives operations.
Alternative perspectives
Because the measure is only at a prerule stage, market impact may be overstated until concrete proposal details emerge.
The 2029 expiration of existing SEC relief could be the real catalyst; harmonization may simply extend uncertainty rather than resolve it.
Key entities
- data repository subsidiaryICE Trade Vault LLC
Swap data repository subsidiary of Intercontinental Exchange that requested synchronized reporting rules.
- regulatorSEC
Seeking to coordinate with CFTC on swaps and security-based swaps reporting requirements.
- regulatorCFTC
Joint effort with SEC to revisit and harmonize reporting requirements.
