SEC Division Of Trading And Markets Issues FAQ On SBS Reporting

In a newly issued FAQ, the SEC Division of Trading and Markets addressed implementation questions on Regulation SBSR ("Regulatory Reporting and Public Dissemination of Security-Based Swap Information").

The Division stated, among other things, that:

• security-based swap ("SBS") market participants that rely on the SEC's no-action statement permitting reporting in accordance with CFTC Rules may not also rely on delaying reporting under the 24-hour requirement of SEC Rule 901(j) ("Interim timeframe for reporting");
• a registered clearing organization is a self-regulatory organization, and, therefore, must enforce compliance by its members with its rules pursuant to SEC Rule 906(c) ("Policies and procedures to support reporting compliance"), including obtaining all required trade information (such as data to be reported as to an SBS later cleared);