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Short Reprieve Granted for Swaps Data Warehouse Rules

The SEC is exempting so-called swaps data repositories from registration rules through June to give the entities more time to prepare their filings. The rules are intended to help the SEC monitor market risk, prevent market manipulation, fraud, and other abuses.

The SEC is exempting so-called swaps data repositories from complying with its registration rules through June to give the entities more time to prepare their filings.

The rules, finalized in February 2015, previously had a compliance date of March 18, 2016.

The extension was issued on March 18 in Release No. 34-77400, Order Granting a Temporary Exemption Pursuant to Section 36 of the Securities Exchange Act of 1934 from Compliance with Rules 13n-1 to 13n-12 under the Securities Exchange Act of 1934 .

Swaps data repositories (SDRs) are centralized electronic warehouses that store information on over-the-counter derivatives for use by regulators and other interested parties. The SDRs are a key part of the post-crisis regulatory framework for derivatives set up under Title VII of the Dodd-Frank Act.

The extension will give “additional time to potential SDR registrants to thoroughly develop and prepare a complete application for registration,” the SEC said in Release No. 34-77400. The rules are intended to help the SEC monitor market risk, prevent market manipulation, fraud, and other abuses.

The registration and reporting regime was established in Release No. 34-74246, Security-Based Swap Data Repository Registration, Duties, and Core Principles . The release contains rules that cover the responsibilities of repositories for registration, data collection, privacy, record-keeping, disclosure and other topics.

The rules became effective in May 2015, with a compliance deadline coming less than a year later. The most recent extension pushes the deadline to June 30.

Dodd-Frank divided regulatory authority over the swaps market between the SEC and Commodity Futures Trading Commission (CFTC). The SEC is tasked with regulating financial swaps, which are derivatives tied to a single loan, security, or narrow securities index.

At the same time it issued its overarching SDR rules last year, the SEC also issued rules covering how swaps information must be reported to the repositories, and how transaction, volume, and price data must be made available to the public. The so-called “Regulation SBSR” was published in Release No. 34-74244, Regulation SBSR — Reporting and Dissemination of Security-Based Swap Information .