On June 18, the SEC and CFTC issued a joint request for comment on potential opportunities to harmonize, modernize and streamline data reporting requirements for the security-based swap and swap markets. The request seeks input to help evaluate whether changes to the design, scope and structure of the agencies’ respective reporting frameworks would lead to greater alignment, enhance market transparency, reduce unnecessary operational complexity, promote data quality, and improve regulatory oversight while preserving each agency’s distinct statutory mandates under the Dodd-Frank Act. The agencies noted that reporting frameworks generating large quantities of low-utility or duplicative information may reduce the ability to draw insights from the data and potentially complicate market oversight.

The joint request seeks comment on five broad topics: (i) harmonization across frameworks; (ii) transparency and data quality; (iii) operational complexity; (iv) standardized identifiers and reference data; and (v) implementation considerations. Among specific areas of inquiry, the agencies ask whether the SEC should amend its security-based swap reporting rules to harmonize more fully with the CFTC’s swap reporting rules. On transparency and data quality, the agencies also seek input on whether public dissemination rules affect market liquidity or raise concerns about the public disclosure requirement. The agencies also welcome input on appropriate implementation timelines and factors that would beneficially inform sequencing while minimizing compliance costs and burdens. Comments must be submitted by August 24.