On January 14, 2015, the SEC adopted two rules requiring security-based swap depositories (SB-SDR) to register with it, and enumerating such SB-SDRs’ reporting and public dissemination requirements. The SEC also proposed rule amendments and guidance related to the reporting and public distribution of data related to security-based swap transactions. Among other measures, all security-based swaps involving US persons or registered security-based swap dealers would have to be reported to an SB-SDR within 24 hours after execution; the rules do not require real-time reporting. SB-SDRs must also establish independent compliance functions, with only boards of directors having the authority to appoint, determine the level of compensation for and remove chief compliance officers, and requiring chief compliance officers to prepare an annual compliance report. Finally, the rules establish a hierarchy related to the reporting of required information among the different types of parties to a security-based swap transaction (e.g., priority for security-based swap dealers).

The new rules will become effective 60 days after they are published in the Federal Register. Persons subject to the new rules governing the registration