SEC Approves Registration of First Security-Based Swap Data Repository (SBSDR) Triggering Compliance Date for Regulation SBSR | Practical Law

SEC Approves Registration of First Security-Based Swap Data Repository (SBSDR) Triggering Compliance Date for Regulation SBSR | Practical Law

The SEC issued an order approving the application for registration of DTCC Data Repository (US), LLC (DDR) as the first security-based swap data repository (SBSDR). The registration of DDR as an SBSDR sets November 8, 2021 as the first compliance date for Regulation SBSR data reporting rules for security-based swaps (SBS).

SEC Approves Registration of First Security-Based Swap Data Repository (SBSDR) Triggering Compliance Date for Regulation SBSR

by Practical Law Finance
Published on 12 May 2021 • USA (National/Federal)
The SEC issued an order approving the application for registration of DTCC Data Repository (US), LLC (DDR) as the first security-based swap data repository (SBSDR). The registration of DDR as an SBSDR sets November 8, 2021 as the first compliance date for Regulation SBSR data reporting rules for security-based swaps (SBS).
On May 7, 2021, the SEC issued an order approving the application for registration of DTCC Data Repository (U.S.), LLC (DDR) as the first security-based swap data repository (SBSDR). DDR intends to operate as a registered SBSDR for security-based swap (SBS) transactions in the equity, credit, and interest rate derivatives asset classes. The registration of DDR as an SBSDR sets November 8, 2021 as the first compliance date for Regulation SBSR.
A key component of the broader SBS regulatory regime established under the Dodd-Frank Act, Regulation SBSR governs data reporting and public dissemination requirements for SBS transactions. Concurrent with the adoption of Regulation SBSR, the SEC also adopted final rules governing SBSDRs, including the requirement to register with the SEC under Section 13(n) of the Exchange Act (see Legal Update, SEC Adopts Security-Based Swap Reporting and Recordkeeping Regime under Dodd-Frank).
Under Regulation SBSR, registered SBSDRs and entities with a duty to report SBS data are subject to the following compliance schedule for reporting:
  • Compliance Date 1: Reporting newly executed SBS on or after the first Monday that is the later of:
  • Compliance Date 2: Public dissemination will commence the first Monday that is three months after Compliance Date 1.
  • Compliance Date 3: All historical SBS in that asset class must be or have been reported to a registered SBSDR two months after Compliance Date 2, to the extent that such information is available.
Therefore, the registration of DDR as the first SBSDR sets November 8, 2021 as Compliance Date 1 for Regulation SBSR, as the November 8, 2021 compliance date represents the first Monday that is the later of:
  • Six months after May 7, 2021, DDR's registration date.
  • One month after the October 6, 2021 compliance date for registration of SBS Entities.
For more information on Regulation SBSR and the rules governing SBSDR registration, duties, and core principles, see Practice Note, US Derivatives Regulation: SEC Regulation SBSR Data Reporting for Security-Based Swaps.
For additional resources on SBS rules and regulations under US law, see US Derivatives Regulation: Security-Based Swaps (SBS) Toolkit.
For additional resources on swap data reporting and recordkeeping under US law, see US Derivatives Regulation: Swaps Compliance Toolkit.