As a result of the Securities and Exchange Commission (SEC or the Commission) recently extending relief that the Commission originally granted under its 2019 Compliance Statement, security-based swap (SBS) market participants are allowed to continue following the Commodity Futures Trading Commission’s (CFTC) swap reporting rules instead of complying with certain requirements in the SEC’s Regulation SBSR.[1] The SEC’s relief, which was once set to expire in November 2025, will now remain in effect through November 5, 2029.
Background: Why the Relief Exists
The 2019 Compliance Statement was issued alongside SEC rule amendments and guidance addressing the cross-border application of SBS requirements under the Securities Exchange Act of 1934.[2] It aimed to ease the compliance burden associated with Regulation SBSR (Reporting and Dissemination of Security-Based Swap Information), which governs the regulatory reporting and public dissemination of SBS transactions. Adopted in 2015, Regulation SBSR requires market participants to report SBS transaction data to registered security-based swap data repositories (SBSDRs) or directly to the SEC, and for SBSDRs to publicly disseminate transaction, volume, and pricing information.[3]
However, since the adoption of Regulation SBSR, markets and reporting infrastructure have evolved considering the CFTC’s swap reporting framework. The CFTC’s rules have been in effect for roughly 13 years, and market participants are largely structured around them. At the time the 2019 Compliance Statement was issued, no SBSDRs had yet registered with the SEC, while several had already registered with the CFTC.
What Relief the SEC is Extending
Under the 2019 Compliance Statement, the SEC committed not to pursue enforcement actions for certain failures to comply with Regulation SBSR — provided market participants follow the CFTC’s swap reporting rules instead.[4] The specific relief applies to:
- Reporting Party Designation (Rule 901(a)): No enforcement action where a person fails to report a transaction or designate a reporting party, if under CFTC rules another party (or no party) would have been responsible.
- Data Element Reporting (Rules 901(c)(2)-(7), 901(d)): No enforcement action where a data element required by SEC rules is omitted, provided the CFTC does not require the same element for comparable swaps.
- Lifecycle Event Reporting (Rule 901(e)): No enforcement action for reporting lifecycle events in the manner used under CFTC rules rather than the SEC’s required format.
- Transaction Dissemination by SDRs (Rule 902): No enforcement action if an SDR disseminates data using CFTC’s Part 43 rules, such as capping notional amounts for credit-related SBS at $5 million USD.
- Other SDR Technical Compliance Issues: No enforcement action for failures related to using codes instead of readable text, missing ID notifications, parent/affiliate information collection, lifecycle and condition flag reporting, data validation, and securities information processor duties.
The extension issued on April 17, 2025, effectively acknowledges the operational and infrastructure alignment between the CFTC and SEC frameworks and avoids imposing duplicative or conflicting obligations on market participants.
Why This Matters: A Pro-Market Signal
Most SBS market participants already operate under the CFTC’s swap regime and have invested heavily in systems aligned with the CFTC’s requirements. This recent extension continues to recognize the efficiencies of relying on existing infrastructure and minimizes regulatory friction between the two frameworks, especially around data fields, submission formats, and cross-border considerations.
Broader Context: Alignment with Regulatory Philosophy
This extension also aligns with broader shifts toward clarity, transparency, and cost-benefit accountability in regulation. SEC In the past, Chairman Paul S. Atkins advocated for limiting regulatory overreach and emphasized the value of providing clear guidance rather than creating new definitions through enforcement.[5] Commissioner Mark T. Uyeda also recently noted, “an important function that a regulator can play is to provide clarity to market participants applying the rules to particular facts and circumstances,” rather than regulating through enforcement actions.[6] While regulatory priorities may continue to evolve, the SEC’s decision to extend this relief through 2029 signals a continued commitment to pragmatism, transparency, and operational consistency.
Read the full extension release here.
[1]Regulation SBSR (Reporting and Dissemination of Security-Based Swap Information) and Security-Based Swap Data Repository Rules; Extension, 90 Fed. Reg. 17225 (Apr. 17, 2025).
[2]Cross-Border Application of Certain Security-Based Swap Requirements, 85 Fed. Reg. 6270, 6346-49 (Feb. 4, 2020).
[3]Regulation SBSR—Reporting and Dissemination of Security-Based Swap Information, 80 Fed. Reg. 14564 (Feb. 11, 2015).
[4]Id.
[5] See Katten’s Quick Reads post on incoming SEC Commissioner Paul S. Atkins here.
[6]Id.
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