The SEC extended an exemption for security-based swap data repositories ("SDRs") from compliance with rules that govern the SDR registration process, duties and core principles under Title VII of the Dodd-Frank Act (see previous coverage). According to the SEC Order, the extension allows additional time for the SEC to consider pending applications from DTCC Data Repository (U.S.) LLC and ICE Trade Vault, LLC, each of which intend to file amended applications. As a result, the extended exemptions will run until the later of (i) May 1, 2017, or (ii) for any pending applicant that files amendments before May 1, 2017 to an application with the SEC, September 29, 2017.
Commentary
This action effectively extends the overall compliance schedule for reporting security-based swap ("SBS") transactions. In accordance with the compliance schedule adopted by the SEC, market participants will be required to report trades in security-based swaps beginning on the later of (i) one month after security-based swap dealers are required to register (a date that is itself triggered by the completion of a series of SEC rules) and (ii) six months after a registered SDR begins accepting reports in an asset class. As such, under the revised Order, it appears likely that reporting will not begin until 2018.
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