US Codex
C.F.R.
Browse by date

View an earlier version

Latest
Current
Browse all versions by date
Notes

17 C.F.R. §§ 49.19–49.21

3 sections in range

§49.19. Core principles applicable to swap data repositories.

17 C.F.R. § 49.19

(a)
Compliance with core principles. To be registered, and maintain registration, a swap data repository shall comply with the core principles as described in this section. Unless otherwise determined by the Commission by rule or regulation, a swap data repository shall have reasonable discretion in establishing the manner in which the swap data repository complies with the core principles described in this section.
(b)
Antitrust considerations (Core Principle 1). Unless necessary or appropriate to achieve the purposes of the Act, a swap data repository shall avoid adopting any rule or taking any action that results in any unreasonable restraint of trade; or imposing any material anticompetitive burden on trading, clearing or reporting swaps.
(c)
Governance arrangements (Core Principle 2). Swap data repositories shall establish governance arrangements as set forth in § 49.20.
(d)
Conflicts of interest (Core Principle 3). Swap data repositories shall manage and minimize conflicts of interest and establish processes for resolving such conflicts of interest as set forth in § 49.21.
(e)
Additional duties (Core Principle 4). Swap data repositories shall also comply with the following additional duties:
(1)
Financial resources. Swap data repositories shall maintain sufficient financial resources as set forth in § 49.25;
(2)
Disclosure requirements of swap data repositories. Swap data repositories shall furnish an appropriate disclosure document setting forth the risks and costs of swap data repository services as detailed in § 49.26; and
(3)
Access and Fees. Swap data repositories shall adhere to Commission requirements regarding fair and open access and the charging of any fees, dues or other similar type charges as detailed in § 49.27.
Notes, amendments, and revision history

Amendments

[76 FR 54575, Sept. 1, 2011, as amended at 85 FR 75661, Nov. 25, 2020]

Authority

Authority: 7 U.S.C. 1a, 2(a), 6r, 12a, and 24a, as amended by Title VII of the Wall Street Reform and Consumer Protection Act of 2010, Pub. L. 111-203, 124 Stat. 1376 (Jul. 21, 2010), unless otherwise noted.

Source

Source: 76 FR 54575, Sept. 1, 2011, unless otherwise noted.

Amendments

[76 FR 54575, Sept. 1, 2011, as amended at 85 FR 75661, Nov. 25, 2020]

§49.20. Governance arrangements (Core Principle 2).

17 C.F.R. § 49.20

(a)
General.
(1)
Each swap data repository shall establish governance arrangements that are transparent to fulfill public interest requirements, and to support the objectives of the Federal Government, owners, and participants.
(2)
Each swap data repository shall establish governance arrangements that are well-defined and include a clear organizational structure with consistent lines of responsibility and effective internal controls, including with respect to administration, accounting, and the disclosure of confidential information. § 49.22 of this part contains rules on internal controls applicable to administration and accounting. § 49.16 of this part contains rules on internal controls applicable to the disclosure of confidential information.
(b)
Transparency of governance arrangements.
(1)
Each swap data repository shall state in its charter documents that its governance arrangements are transparent to support, among other things, the objectives of the Federal Government pursuant to Section 21(f)(2) of the Act.
(2)
Each swap data repository shall, at a minimum, make the following information available to the public and relevant authorities, including the Commission:
(i)
The mission statement of the swap data repository;
(ii)
The mission statement and/or charter of the board of directors, as well as of each committee of the swap data repository that has:
(A)
The authority to act on behalf of the board of directors or
(B)
The authority to amend or constrain actions of the board of directors;
(iii)
The board of directors nomination process for the swap data repository, as well as the process for assigning members of the board of directors or other persons to any committee referenced in paragraph (b)(2)(ii) of this section;
(iv)
For the board of directors and each committee referenced in paragraph (b)(2)(ii) of this section, the names of all members;
(v)
A description of the manner in which the board of directors, as well as any committee referenced in paragraph (b)(2)(ii) of this section, considers an independent perspective in its decision-making process, as § 49.2(a) defines such term;
(vi)
The lines of responsibility and accountability for each operational unit of the swap data repository to any committee thereof and/or the board of directors; and
(vii)
Summaries of significant decisions impacting the public interest, the rationale for such decisions, and the process for reaching such decisions. Such significant decisions shall include decisions relating to pricing of repository services, offering of ancillary services, access to SDR data, and use of section 8 material, SDR information, and intellectual property (as referenced in § 49.16). Such summaries of significant decisions shall not require the swap data repository to disclose section 8 material or, where appropriate, information that the swap data repository received on a confidential basis from a swap execution facility, designated contract market, or reporting counterparty.
(3)
The swap data repository shall ensure that the information specified in paragraph (b)(2)(i) to (vii) of this section is current, accurate, clear, and readily accessible, for example, on its Web site. The swap data repository shall set forth such information in a language commonly used in the commodity futures and swap markets and at least one of the domestic language(s) of the jurisdiction in which the swap data repository is located.
(4)
Furthermore, the swap data repository shall disclose the information specified in paragraph (b)(2)(vii) of this section in a sufficiently comprehensive and detailed fashion so as to permit the public and relevant authorities, including the Commission, to understand the policies or procedures of the swap data repository implicated and the manner in which the decision implements or amends such policies or procedures. A swap data repository shall not disclose minutes from meetings of its board of directors or committees to the public, although it shall disclose such minutes to the Commission upon request.
(c)
The board of directors—
(1)
General.
(i)
Each swap data repository shall establish, maintain, and enforce (including, without limitation, pursuant to paragraph (c)(4) of this section) written policies or procedures:
(A)
To ensure that its board of directors, as well as any committee that has— (1) Authority to act on behalf of its board of directors or

(2) Authority to amend or constrain actions of its board of directors, adequately considers an independent perspective in its decision-making process;

(B)
To ensure that the nominations process for such board of directors, as well as the process for assigning members of the board of directors or other persons to such committees, adequately incorporates an independent perspective; and
(C)
To clearly articulate the roles and responsibilities of such board of directors, as well as such committees, especially with respect to the manner in which they ensure that a swap data repository complies with all statutory and regulatory responsibilities under the Act and the regulations promulgated thereunder.
(ii)
Each swap data repository shall submit to the Commission, within thirty days after each election of its board of directors:
(A)
For the board of directors, as well as each committee referenced in paragraph (c)(1)(i)(A) of this section, a list of all members;
(B)
A description of the relationship, if any, between such members and the swap data repository or any swap execution facility, designated contract market, or reporting counterparty user thereof (or, in each case, affiliates thereof, as § 49.2(a) defines such term); and
(C)
Any amendments to the written policies and procedures referenced in paragraph (c)(1)(i) of this section.
(2)
Compensation. The compensation of non-executive members of the board of directors of a swap data repository shall not be linked to the business performance of such swap data repository.
(3)
Annual self-review. The board of directors of a swap data repository shall review its performance and that of its individual members annually. It should consider periodically using external facilitators for such reviews.
(4)
Board member removal. A swap data repository shall have procedures to remove a member from the board of directors, where the conduct of such member is likely to be prejudicial to the sound and prudent management of the swap data repository.
(5)
Expertise. Each swap data repository shall ensure that members of its board of directors, members of any committee referenced in paragraph (c)(1)(i)(A) of this section, and its senior management, in each case, are of sufficiently good repute and possess the requisite skills and expertise to fulfill their responsibilities in the management and governance of the swap data repository, to have a clear understanding of such responsibilities, and to exercise sound judgment about the affairs of the swap data repository.
(d)
Compliance with core principle. The chief compliance officer of the swap data repository shall review the compliance of the swap data repository with this core principle.
Notes, amendments, and revision history

Amendments

[76 FR 54575, Sept. 1, 2011, as amended at 85 FR 75661, Nov. 25, 2020]

Authority

Authority: 7 U.S.C. 1a, 2(a), 6r, 12a, and 24a, as amended by Title VII of the Wall Street Reform and Consumer Protection Act of 2010, Pub. L. 111-203, 124 Stat. 1376 (Jul. 21, 2010), unless otherwise noted.

Source

Source: 76 FR 54575, Sept. 1, 2011, unless otherwise noted.

Amendments

[76 FR 54575, Sept. 1, 2011, as amended at 85 FR 75661, Nov. 25, 2020]

§49.21. Conflicts of interest (Core Principle 3).

17 C.F.R. § 49.21

(a)
General.
(1)
Each swap data repository shall establish and enforce rules to minimize conflicts of interest in the decision-making process of the swap data repository, and establish a process for resolving such conflicts of interest.
(2)
Nothing in this section shall supersede any requirement applicable to the swap data repository pursuant to § 49.20 of this part.
(b)
Policies and procedures.
(1)
Each swap data repository shall establish, maintain, and enforce written procedures to:
(i)
Identify, on an ongoing basis, existing and potential conflicts of interest; and
(ii)
Make decisions in the event of a conflict of interest. Such procedures shall include rules regarding the recusal, in applicable circumstances, of parties involved in the making of decisions.
(2)
As further described in § 49.20 of this part, the chief compliance officer of the swap data repository shall, in consultation with the board of directors or a senior officer of the swap data repository, as applicable, resolve any such conflicts of interest.
(c)
Compliance with core principle. The chief compliance officer of the swap data repository shall review the compliance of the swap data repository with this core principle.
Notes, amendments, and revision history

Authority

Authority: 7 U.S.C. 1a, 2(a), 6r, 12a, and 24a, as amended by Title VII of the Wall Street Reform and Consumer Protection Act of 2010, Pub. L. 111-203, 124 Stat. 1376 (Jul. 21, 2010), unless otherwise noted.

Source

Source: 76 FR 54575, Sept. 1, 2011, unless otherwise noted.