One piece of that law dealt with how swap data repositories (SDRs) can share data. Before Dodd-Frank, U.S.-based SDRs shared information with non-U.S. regulators — the concept of sharing this data is seen as a factor that can help ensure regulators around the world understand how financial risk is being spread around the market.
The trouble is that this concept of "indemnification" is not established in laws outside those of the United States, and foreign regulators have indicated they will not live up to this indemnification requirement.
As a result, failure to change current law puts at risk the ability of regulators around the world to share swap data information and get a full picture of the financial risks that might be piling up. That would go against the "lessons learned" from the financial crisis.
To fix the problem, Rep. Rick Crawford (R-Ark.) and three other members proposed H.R. 742, the Swap Data Repository and Clearinghouse Indemnification Correction Act. This will would remove the indemnification requirements in Dodd-Frank.
The Securities and Exchange Commission has already told Congress it favors this change, since it would remove a barrier to foreign access to U.S. swap data, and also help the U.S. in "securing the access it needs to data held in global trade repositories."
However, the bill would leave in place the current requirement that U.S.-based SDRs must receive assurances that foreign regulators will live by confidentiality agreements related to the swap data they receive.
The House is expected to pass the bill as early as Wednesday. GOP leaders are calling up the bill under a suspension of the rules, which means less debate and a two-thirds majority for passage is needed.