We found that there is no comprehensive guide to SDR data, so we have put together the below to summarise and highlight what SDR data is and why it is so useful.

What is SDR
Swap data repositories (SDRs) were new entities created by the Dodd-Frank Act, in order to provide a central facility for swap data reporting and recordkeeping. Under Dodd-Frank Act, all swaps, whether cleared or uncleared, are required to be reported to registered SDRs. 

SDRs are required to register with the CFTC and comply with rules promulgated by the CFTC, including real-time public reporting of swap transaction and pricing data.

Actually it is not straightforward to become an SDR – applicants are required to submit formal applications, and the Commission will review each application within an 180 day time frame. There quite a few instances of applicants ultimately withdrawing their applications.

What Asset Classes are covered?

Since April 2013, interest rate, credit, equity, FX and commodities swaps executed on or pursuant to the rules of designated contract market, as well as swaps executed “off-facility” have been required to be reported to SDRs. A designated contract market is an exchange that may list for trading futures or options contracts.

Who needs to report trades to SDRs?

Swap dealers and major swap participants are responsible for reporting all of their swap transactions to an SDR, regardless of whether the transaction is cleared or uncleared. The information that must be reported to an SDR includes details such as the parties to the swap, the terms of the swap, the notional amount, the price, and the date and time of execution. The reporting requirements are intended to improve transparency in the OTC derivatives market and to help regulators monitor and manage systemic risk.

What are the reporting requirements?

According to the CFTC's factsheet, the details about swaps that are required to be reported to registered swap data repositories include:

Counterparty information: The names and addresses of the counterparties to the swap.

Transaction information: The date and time of execution, the price or rate of the swap, and the notional amount.

Product information: The type of swap and the underlying asset, such as an interest rate, currency, or commodity.

Valuation data: The mark-to-market or mark-to-model value of the swap.

 

Other details: Additional information about the swap, such as its termination date, payment frequency, and settlement terms.

Please feel free to reach out to info@pricevault.io to find out more about how SDR data can help your valuations and trading!