Sec. 206. Swap data repositories and digital asset trade repositories
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Section 21 of the Commodity Exchange Act ( 7 U.S.C. 24a ) is amended to read as follows: It shall be unlawful for any person, unless registered with the Commission, directly or indirectly to make use of the mails or any means or instrumentality of interstate commerce to perform the functions of a swap data repository or a digital asset repository of transactions. A derivatives clearing organization may register as a swap data repository. Each registered swap data repository and digital asset repository of transactions shall be subject to inspection and examination by any representative of the Commission.
To be registered, and maintain registration, as a swap data repository or a digital asset repository of transactions, the swap data repository or digital asset repository of transactions shall comply with— the requirements and core principles described in this section; and any requirement that the Commission may impose by rule or regulation pursuant to section 8a(5). Unless otherwise determined by the Commission by rule or regulation, a swap data repository or a digital asset repository of transactions described in subparagraph
(A)shall have reasonable discretion in establishing the manner in which the swap data repository or the digital asset repository of transactions complies with the core principles described in this section. In accordance with subparagraph (B), the Commission shall prescribe standards that specify the data elements for each swap or digital asset that shall be collected and maintained by each registered swap data repository or digital asset repository of transactions, respectively. In carrying out subparagraph (A), the Commission shall prescribe consistent data element standards applicable to registered entities and reporting counterparties. The Commission shall prescribe data collection and data maintenance standards for swap data repositories and digital asset trade repositories. The standards prescribed by the Commission under this subsection shall be comparable to the data standards imposed by the Commission on derivatives clearing organizations in connection with the clearing of swaps or digital assets, as appropriate. A swap data repository or a digital asset repository of transactions shall— accept data prescribed by the Commission for each swap or digital asset transaction under subsection (b), respectively; confirm with both counterparties to the swap or the digital asset transaction the accuracy of the data that was submitted; maintain the data described in paragraph
(1)in such form, in such manner, and for such period as may be required by the Commission; provide direct electronic access to the Commission (or any designee of the Commission, including another registered entity); and provide the information described in paragraph
(1)in such form and at such frequency as the Commission may require to comply with the public reporting requirements contained in section 2(a)(13); at the direction of the Commission, establish automated systems for monitoring, screening, and analyzing swap or digital asset data, including compliance and frequency of end user clearing exemption claims by individual and affiliated entities; maintain the privacy of any and all swap or digital asset transaction information that the swap data repository or digital asset repository of transactions, respectively, receives from a swap dealer, counterparty, or any other registered entity; on a confidential basis pursuant to section 8, upon request, and after notifying the Commission of the request, make available swap or digital asset data obtained by the swap data repository or digital asset repository of transactions, respectively, including individual counterparty trade and position data, to— each appropriate prudential regulator; the Financial Stability Oversight Council; the Securities and Exchange Commission; the Department of Justice; and any other person that the Commission determines to be appropriate, including— foreign financial supervisors (including foreign futures authorities); foreign central banks; foreign ministries; and other foreign authorities; and establish and maintain emergency procedures, backup facilities, and a plan for disaster recovery that allows timely recovery and resumption of operations and the fulfillment of the responsibilities and obligations of the organization. Before the swap data repository or digital asset repository of transactions may share information with any entity described in subsection (c)(7), the swap data repository or digital asset repository of transactions shall receive a written agreement from each entity stating that the entity shall abide by the confidentiality requirements described in section 12 of this title relating to information on swap or digital asset transactions, respectively, that is provided. Each swap data repository or digital asset repository of transactions shall designate an individual to serve as a chief compliance officer. The chief compliance officer shall— report directly to the board or to the senior officer of the swap data repository or digital asset repository of transactions; review the compliance of the swap data repository or digital asset repository of transactions with respect to requirements and core principles described in this section; in consultation with the board of the swap data repository or digital asset repository of transactions, a body performing a function similar to the board of the swap data repository or digital asset repository of transactions, or senior officer of the swap data repository or digital asset repository of transactions resolve any conflicts of interest that may arise; be responsible for administering each policy and procedure that is required to be established pursuant to this section; ensure compliance with this Act (including regulations) relating to agreements, contracts, or transactions, including each rule prescribed by the Commission under this section; establish procedures for the remediation of noncompliance issues identified by the chief compliance officer through any— compliance office review; look-back; internal or external audit finding; self-reported error; or validated complaint; and establish and follow appropriate procedures for handling, management response, remediation, retesting, and closing of noncompliance issues. In accordance with rules prescribed by the Commission, the chief compliance officer shall annually prepare and sign a report that contains a description of— the compliance of the swap data repository or the digital asset repository of transactions, as appropriate, of the chief compliance office with respect to this Act (including regulations); and each policy and procedure of the swap data repository or the digital asset repository of transactions, as appropriate, of the chief compliance officer (including the code of ethics and conflict of interest policies of the swap data repository or the digital asset repository of transactions, as appropriate). A compliance report under subparagraph
(A)shall— accompany each appropriate financial report of the swap data repository or digital asset repository of transactions that is required to be furnished to the Commission pursuant to this section; and include a certification that, under penalty of law, the compliance report is accurate and complete. Unless necessary or appropriate to achieve the purposes of this Act, a swap data repository or digital asset repository of transactions shall not— adopt any rule or take any actions that result in any unreasonable restraint of trade; or impose any material anticompetitive burden on the trading, clearing, or reporting of transactions. Each swap data repository or digital asset repository of transactions shall establish governance arrangements that are transparent— to fulfill public interest requirements; and to support the objectives of the Federal Government, owners, and participants. Each swap data repository or digital asset repository of transactions shall— establish and enforce rules to minimize conflicts of interest in the decision making process of the swap data repository or the digital asset repository of transactions; and establish a process for resolving conflicts of interest described in subparagraph (A). The Commission may develop 1 or more additional duties applicable to swap data repositories or digital asset trade repositories. In developing additional duties under subparagraph (A), the Commission may take into consideration any evolving standard of the United States or the international community. The Commission shall establish additional duties for any registered swap data repository or digital asset repository of transactions in order to minimize conflicts of interest, protect data, ensure compliance, and guarantee safety and security of the swap data repository or digital asset repository of transactions. Any person that is required to be registered as a swap data repository or a digital asset repository of transactions under this section shall register with the Commission regardless of whether that person is also licensed as a bank, trust company, money services business, or registered with the Securities and Exchange Commission as a security-based swap data repository, broker-dealer, qualified custodian, or transfer agent. The Commission shall adopt rules governing persons that are registered under this section. .
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Sec. 206
Swap data repositories and digital asset trade repositories
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