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SEC Publishes SBS Reporting Rules in Federal Register

The SEC's final rules regarding (i) the registration of security-based swap data repositories ("SBSDRs") (the "SBSDR Rules"), (ii) the requirements for reporting and the public dissemination of security-based swap ("SBS") data ("Reg. SBSR"), and (iii) the implementation of Reg. SBSR ("Reg. SBSR Proposal") were published in the Federal Register.

Generally, the rules require market participants to report creation and life-cycle data regarding SBS transactions. As with the CFTC reporting requirements for swaps, the rules provide a "waterfall" approach for determining who is required to report. Generally, SBS dealers would be responsible for reporting SBSs in which they are a counterparty, followed by major SBS participants. For transactions between two end users in which only one of them is a U.S. person, that U.S. person is responsible for reporting. Unlike the CFTC rules, the SEC rules do not address whether an entity is a "financial entity."

The SBSDR Rules will become effective on May 18, 2015 and the compliance date will be March 18, 2016.

Reg. SBSR will become effective on May 18, 2015. Rules 900, 907 and 909 - definitions, policies and procedures for registered entities, and securities information processor registration - will require compliance on the effective date. For the remainder of the rules - i.e., the bulk of the substantive requirements - the compliance dates are proposed in the Reg. SBSR Proposal. Under the proposal, compliance would be required for an asset class within six months following the date on which a registered SBSDR accepted reports for that asset class. The public dissemination requirements of the rules would go into effect nine months after that date.

Comments on the Reg. SBSR Proposal are due by May 4, 2015.

Please see this Cabinet news story for a more detailed description of the rules.

See: 80 FR 14437; 80 FR 14563; 80 FR 14739.
Related news: SEC Publishes SBS Reporting Rules (February 11, 2015); SEC Adopts Rules to Increase Transparency in Security-Based Swaps Market (with Lofchie Comment and YouTube Selection) (January 14, 2015).

For further questions on the new rules, please contact Jeffrey Robins, Steven Lofchie or Nihal Patel.