The US Securities and Exchange Commission has evolved some derivative-tracking rules that will become effective 60 days after they are published in the Federal Register.

Two new sets of rules will require security-based swap data repositories or SDRs to register with the Securities and Exchange Commission and will prescribe procedures for the reporting and public dissemination of security-based swap transaction data. The SEC has also proposed other rules, rule amendments and guidance related to the reporting and public dissemination of security-based swap transaction data. The new rules are designed to increase transparency in the security-based swap market and to ensure that SDRs maintain complete records of security-based swap transactions that can be accessed by regulators.

In its rules the commission is recognising the Global Legal Entity Identifier System as the system from which security-based swap counterparties must obtain codes to identify themselves when reporting security-based swap data. The rules also address the application of Regulation SBSR (which governs security-based swap data reporting and public dissemination) to cross-border security-based swap activity and include provisions to permit market participants to satisfy their obligations under Regulation SBSR through compliance with the comparable regulation of a foreign jurisdiction.

The proposed rule amendments would assign reporting duties for certain security-based swaps not addressed by the adopted rules, prohibit registered SDRs from charging fees to or imposing usage restrictions on the users of publicly disseminated security-based swap transaction data, and provide a compliance schedule for certain provisions of Regulation SBSR.