CFTC and SEC Seek Public Comment to Harmonize Swap Data Reporting Rules

The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have published a joint request for public comment aimed at harmonizing, modernizing, and streamlining data reporting rules across swap and security-based swap markets. The initiative is designed to evaluate whether adjustments to the design, scope, and structure of existing reporting regimes can yield closer alignment between the two regulatory agencies. Regulators are seeking to cut unnecessary operational burdens and compliance costs for market participants while maintaining robust market oversight and data integrity under their respective Dodd-Frank Act mandates. CFTC Chairman Michael S. Selig highlighted the joint effort as part of broader interagency cooperation to streamline requirements for registrants. He noted that the initiative aims to cut red tape and lower expenses while ensuring regulators continue receiving the information required to oversee markets effectively. SEC Chairman Paul S. Atkins pointed out that improperly calibrated data collection can impede regulatory oversight rather than improve it. Atkins emphasized that the joint review aims to protect data integrity, fulfill statutory objectives, and reduce compliance expenses through an aligned framework. The agencies are specifically requesting feedback on several key operational and policy areas, including cross-framework harmonization, data quality and market transparency, operational complexity, standardized identifiers and reference data, and implementation considerations for registrants. Market participants and the public will have a 60-day window to submit comments following the publication of the joint request in the Federal Register.