Risk glossary

Swap data reporting is a US obligation on swap dealers and end-users to report over-the-counter derivatives transactions to swap data repositories. Reportable derivatives include “swaps” – defined as interest rate swaps, foreign exchange swaps and forwards, index-based credit default swaps, agricultural and commodity swaps, index-based total return swaps and all options based on a rate or commodity – and “security-based swaps”. The Commodity Futures Trading Commission and Securities Exchange Commission regulate swaps and security-based swaps respectively. CFTC’s rules place the reporting obligation only on one counterparty, while the SEC requires both parties to report details of transactions.

The CFTC’s timeline for finalising its reporting rules was much more aggressive than the SEC’s. Swap dealers and end-users have criticised these rules for being too prescriptive and technically complex and have called for them to be better harmonised with the SEC’s reporting regime.

See also Dodd-Frank Act.

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