SEC Reports on Security-Based Swaps in 2023
Commentary by Steven Lofchie
The SEC issued a report about the security-based swap market based on data reported to SEC-registered Security-Based Swap Data Repositories ("SBSDRs") from July through December 2023.
The report provided aggregated and anonymized information reported pursuant to two SBSDRs: (i) the Depository Trust & Clearing Corporation Data Repository ("DDR") and (ii) the ICE Trade Vault ("ITV"). The report highlighted the following information:
- A "Cleared Status" chart provided a breakdown of security-based swaps by their gross notional amounts and active counts, categorized into cleared, uncleared and intent to clear statuses.
- A "Registrant Type" chart provided the gross notional amounts and active counts of security-based swaps and were categorized by the type of registrant, divided into either (i) SBSDs/MSBSPs or (ii) other.
- A "Product" chart categorized security-based swaps by product type, such as swap, contract for difference, option or forward.
Commentary
While there are a lot of numbers, their meaning is not very clear. For example, one type of security-based-swap is a "swap," and another type is a "contract for difference," but there is no explanation of the difference between the two.