The Commodity Futures Trading Commission on April 25 approved a proposed rule to improve the quality of swap data and update and streamline regulations related to swap data repository (SDR) operations and governance.
A critical component of the 2008 financial crisis was the inability of regulators to assess and quantify the counterparty credit risk of large banks and swaps dealers. To address this shortcoming, the Dodd-Frank Act gave the CFTC broad responsibility to enhance regulatory transparency and price discovery for market participants through trade reporting to SDRs.
