2010 Derivatives Rulemaking Wrap-Up (Part 2)

On November 19, 2010, the SEC issued proposed rules with respect to security-based swap data repository registration, duties, and core principles.

The proposed rules would establish registration procedures and conditions for registering as a security-based swap data repository (SB SDR). Under the proposed rules, applicants would be required to submit a Form SDR electronically to the SEC. Non-resident SB SDR applicants also would be required to provide an opinion of counsel that the SB SDR can, as a matter of law, provide the SEC with prompt access to its books and records and that the SB SDR can, as a matter of law, submit to onsite inspection and examination by the SEC.

SB SDRs will serve as secure, centralized recordkeeping facilities for security-based swap transaction and position data. As such, SB SDRs would be required to establish and enforce written policies and procedures with respect to data collection and maintenance. The proposed rules would require SB