Speech by SEC Commissioner:
Statement at Open Meeting to Propose Rules Regarding Security-Based Swap Data Repository Registration, Duties, and Core Principles
Commissioner Troy A. Paredes
U.S. Securities and Exchange Commission
November 19, 2010
Thank you, Chairman Schapiro.
Section 763(i) of the Dodd-Frank Act amends the Exchange Act to authorize the Commission to adopt rules regarding security-based swap data repositories. Pursuant to this authority, the Commission is proposing these rules.
I support the recommendation before us this morning. The proposing release solicits comment on a range of topics and asks a number of specific questions. As always, I look forward to considering the comments we will receive. I am particularly interested in comments that address the following:
How do the practices and conduct the rules would require of security-based swap data repositories compare to the practices and conduct of entities presently serving as data repositories? In what ways, if any, would a current data repository have to change its activities and operations to comply with the regulatory requirements? What would be the cost and other consequences of doing so?
To what extent and in what ways might the proposed requirements affect the commercial viability of different data repository business models? For what reasons, if any, might the proposed rules impede entry by data repositories?
How might competition among swap data repositories impact the security-based swap market if there were multiple data repositories to which trade information could be reported? On the other hand, what would be the impact of having very few — in the extreme, only one — security-based swap data repository to receive and disseminate trade information?
Are specific regulatory requirements that we are proposing unduly burdensome? What specific refinements to the proposal could reduce any such burdens but without appreciably frustrating the policy goals animating the regulation?
I'd like to thank the staff — especially those from the Division of Trading and Markets — for your hard work on this proposal.