NFA Proposes Expansion of Swap Dealer Reporting Requirements

The NFA proposed the expansion of swap dealer and major swap participant (collectively, "SDs") reporting requirements in order to require the periodic collection of market and credit risk data. A proposed new requirement, which is modeled after a similar information requirement imposed on futures commission merchants, is intended to "provide insight into the current market and credit risk profiles of SDs and to identify firms that may pose heightened risk in order to allocate NFA's regulatory resources appropriately."

The proposed amendments would specify the authority of the NFA to collect SD information generally, "but not the specific data elements." The amendments also establish that, once the NFA Board approves the final data metrics, the NFA will notify SDs of those metrics with a Notice to Members.