- The CFTC eliminated daily and event-based Part 20 reporting for physical commodity swaps.
- Recordkeeping requirements remain, with firms required to provide data through special calls if requested.
- The Commission said existing swap reporting systems now provide sufficient market oversight and transparency.
The Commodity Futures Trading Commission (CFTC) issued a final order ending routine position-reporting requirements under Part 20 for physical commodity swaps. The order removes daily and event-based reporting obligations for clearing organizations, clearing members, and swap dealers. According to the CFTC, the change takes effect upon publication in the Federal Register.
Order Removes Routine Reporting Requirements
According to the CFTC, entities covered under Part 20 will no longer submit daily position reports. They also will stop filing event-based reports previously required under the regulation.
The Commission issued the order under Section 20.9, the sunset provision included when Part 20 took effect in 2011. At that time, the rule served as a temporary reporting measure for physical commodity swaps.
However, the CFTC said its broader swap reporting framework has since expanded. It pointed to registered swap data repositories under Part 49 and reporting requirements in Parts 43 and 45.
The agency also referenced position limits established under Part 150. According to the Commission, those systems now provide the reporting structure needed for market oversight.
Recordkeeping Requirements Remain in Place
Although the reporting rules will end, the CFTC will keep certain provisions during a transition period. Notably, reporting entities must continue maintaining records of paired swap and swaption transactions.
They also must preserve records covering futures-equivalent conversion methods. Additionally, entities must provide those records if the Commission issues an appropriately scoped special call.
The CFTC said these remaining requirements will help maintain access to relevant market information. However, the agency did not announce changes to the special-call process.
Selig Says Order Reduces Unnecessary Burden
CFTC Chairman Michael S. Selig said market participants should not face costly reporting obligations that fail to improve regulatory quality. According to Selig, the final order removes significant and unnecessary compliance burdens.
He also said the Commission will continue accessing the position information needed to oversee commodity markets. According to the CFTC, eliminating routine reports will not reduce its ability to obtain necessary data through its existing reporting framework and retained recordkeeping requirements.
