SEC Adopts Rule Requiring Swap-Data Repositories to Make Data Available to Authorities

The SEC adopted amendments to Securities Exchange Act Rule 13n-4 implementing the conditional requirement that security-based swap data repositories make data available to certain regulators and other authorities (including non-U.S. authorities). The SEC indicated that the only difference between the final rules and the proposed rules is in the elimination of a proposed indemnification requirement in response to statutory amendments. The final amendments will become effective 60 days after their publication in the Federal Register.

The SEC emphasized that a security-based swap data repository's obligation to provide data pursuant to the rules will be conditioned on the entrance by the SEC and a relevant authority into a Memorandum of Understanding ("MOU") or other arrangement that addresses the confidentiality of the security-based swap information being made available. Accordingly, a repository will have no disclosure obligation pursuant to these rules until such an MOU or other arrangement is entered into and becomes effective.