WASHINGTON (CN) – Participants in security based swap agreements would have to report details of the swap to registered security-based swap data repositories which would then make volume and pricing information available to the public, according to rules proposed by the Securities and Exchange Commission.
The rules would implement requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Proposed Regulation SBSR: Reporting and Dissemination of Security-Based Swap Information would amend the Securities Exchange Act to require that a copy of the confirmation of the transaction, the time the transaction was executed; the volumes involved and the counterparties to be submitted to a third-party data repository.
Registered security-based swap data repositories would be required to establish and maintain record retention policies that preserve submitted data for specified periods beyond the term of the trades and for easy access by the public.
Security based swaps are options traded between counterparties based on the value of an underlying security which may include debt, assets, futures contracts and other financial instruments whose value might change over the course of the swap.