Financial reform sought to improve transparency in derivatives markets by requiring that data related to transactions in swaps be reported to swap data repositories. Swap data are critical to understand exposures and connections across the financial system, and the repositories are designed to be high-quality, low-cost data collection points.
The credit default swap data reported to these repositories exemplify new sources of data that supervisors are getting to know for the first time. Because centralizing and reporting these data are so new, some issues are arising in establishing consistent, well understood data definitions and data structures so supervisors can reliably combine and analyze the information.
The OFR and the Commodity Futures Trading Commission (CFTC) want to promote the use of data standards in swap data reporting to assure data quality and utility. Together, we announced in March a memorandum of understanding for a joint project to enhance the quality, types, and formats of data collected from registered swap data repositories (see related press release).
Under a second agreement, members of the OFR staff are working on a detail at the CFTC. Together, we are aggressively moving forward.
Memorandum of Understanding Between CFTC and OFR
Memorandum of Understanding on the terms and conditions for the CFTC and OFR to begin a joint project to enhance the quality, types and formats of data collected from registered swap data repositories.