In December 2023, the Commodity Futures Trading Commission (CFTC) Re-write introduced one of the most significant overhauls in swap data reporting regulations, aiming to enhance transparency, standardisation and data integrity across the derivatives market.
Now, over a year later, financial institutions must ask: is your current CFTC compliance solution keeping up with evolving regulatory demands?
- The CFTC Re-write: one year on
- Reassessing your CFTC compliance strategy
- Addressing compliance challenges with automation
- Are you confident in your CFTC compliance strategy?
The CFTC Re-write: one year on
The CFTC Re-write brought stricter data validation rules, expanded reporting fields, and an increased focus on Unique Product Identifiers (UPIs) and Unique Transaction Identifiers (UTIs). These measures were designed to improve data accuracy and facilitate regulatory oversight.
However, the complexity of these changes continues to challenge many swap dealers, prime brokers, investment banks, and asset managers. Manual processes, data inconsistencies, and inefficient reconciliation workflows remain common pain points, increasing the risk of non-compliance, regulatory penalties, and operational inefficiencies.
Reassessing your CFTC compliance strategy
With compliance expectations evolving, financial institutions need to evaluate whether their current regulatory reporting solutions still meet CFTC Re-write requirements. Key considerations include:
- Data accuracy & completeness – Can your system validate, reconcile, and flag missing or incorrect swap data before submission to Swap Data Repositories (SDRs)?
- Automated exception management – Do you have the capability to detect and resolve mismatches between internal records, trading platforms, and counterparty data in real time?
- Regulatory reporting & control – Does your solution automate data population for new CFTC fields, generate real-time regulatory reports, and ensure compliance with T+1 reporting deadlines?
- Seamless integration & scalability – Can your compliance infrastructure integrate with trade repositories, counterparty systems, and regulatory portals, while remaining scalable for future regulatory changes?
Addressing compliance challenges with automation
For many firms, the CFTC Re-write has highlighted the limitations of manual reconciliation, fragmented reporting systems, and data inconsistencies. As regulatory expectations continue to evolve, the need for accurate, automated, and scalable compliance solutions has never been greater.
Automation plays a key role in tackling these challenges by:
- Ensuring data integrity – Advanced reconciliation processes help firms validate swap transaction data, identifying discrepancies before submission to Swap Data Repositories (SDRs).
- Managing exceptions efficiently – Automated workflows detect mismatches between trade counterparties and internal records, streamlining issue resolution and reducing reporting errors.
- Enhancing regulatory reporting – The ability to auto-populate required data fields, generate audit trails, and support T+1 regulatory deadlines ensures firms stay compliant with evolving rules.
- Adapting to future regulatory changes – Scalable solutions help firms stay ahead of new reporting requirements and data validation rules, minimizing operational disruptions.
As firms reflect on their compliance approach one year on from the CFTC Re-Write, the question remains: Are existing processes keeping up with regulatory demands, or is it time to reassess?
Are you confident in your CFTC compliance strategy?
As regulatory reporting requirements continue to evolve, firms that fail to modernize their compliance infrastructure may face increasing operational risks and regulatory scrutiny. The time to assess and optimize your CFTC Re-write compliance strategy is now.
Discover how AutoRek can help your firm ensure seamless CFTC compliance.