SEC Delays SDR Registration Compliance Date
The SEC granted a temporary exemption from compliance with security-based swap data repository ("SDR") rules that govern the SDR registration process, duties and core principles under Title VII of the Dodd-Frank Act. The SEC emphasized that the exemption is intended to give potential SDR registrants additional time to "thoroughly" develop and prepare complete applications.
The temporary exemption will expire on the earlier of (i) the date on which the SEC grants registration to an SDR or (ii) June 30, 2016. The original compliance date for the SDR rules occurred on March 18, 2016.
Commentary
Absent relief, the rules that apply to security-based swap data repositories would have required compliance by March 18, 2016. In addition to giving SDRs more time, the relief will affect market participants in the following ways:
- The exemption states that completed SDR registration applications will be published and that comments from the public will be solicited.
- The delay likely will have a carry-on effect concerning the overall time period before market participants will be required to report security-based swaps ("SBS"). The SEC proposed that, when adopting Regulation SBSR (i.e., the rules governing SBS reporting generally), compliance would be required for an asset class of SBS six months following the date on which a registered SDR began accepting reports for that asset class. That proposal has not been finalized.