SEC Grants FINRA Access to Security-Based Swap Data
The SEC conditionally permitted FINRA to access security-based swap data obtained from security-based swap data repositories ("SBSDRs").
Pursuant to the Order, which was issued following a request from FINRA, the SEC granted FINRA access to security-based swap data held by SBSDRs. FINRA requested access to swap data repository SBS data to "enhance its ability to conduct effective reviews, examinations and investigations into potential violations of rules by FINRA members with respect to their security-based swap activities." Under swap data repository regulations, repositories are required to provide swap data to certain recipients upon request. The access is conditionally granted subject to effecting a confidentiality agreement between the SEC and FINRA regarding the highly confidential swap data.
The Order will take effect on September 16, 2022.
Commentary
Beyond FINRA, all other entities that have access to SBSDR data are governmental authorities with some express statutory role for overseeing Security-Based Swaps ("SBSs") and/or SBS dealers.