Dodd-Frank Wall Street Reform and Consumer Protection Act provides a regulatory framework designed to improve control and oversight of the previously largely unregulated swaps market and, as a result, reduce systematic risks, increase transparency and promote market integrity within the US financial system.
The Dodd-Frank Act is implemented by the Commodities and Futures Trading Commission (CFTC), and the Securities Exchange Commission (SEC). As security-based swaps account for the minority of trades, the CFTC has taken the lead role in regulation development.
- All communications related to a trade must be stored (for a period of minimum of one year)
- Information must be archived in a retrievable format (that can be easily searched)
- Information must include conversations and data interactions (made on all mobile devices)
- Senior management must implement sound security mechanisms, to guarantee data protection, to minimize the risk of unauthorized access and to prevent information leakage