XBRL US provides feedback on draft 2024 SBS Taxonomy
XBRL US recently submitted feedback to the Securities and Exchange Commission’s (SEC) Office of Structured Disclosure on the draft 2024 Security-Based Swap (SBS) Taxonomy. This feedback follows the SEC’s adoption of the final rule on Security-Based Swap Execution and Registration of Security-Based Swap Execution Facilities (SBSEF) late last year. The draft 2024 Security-Based Swap (SBS) Taxonomy aims to facilitate digital filing of compliance and risk management information by swap trading entities
This SBSEF rule tackles crucial conflict of interest and efficiency challenges in the security-based swaps market, establishing a structured framework for their registration and regulation. Swap trading entities are required to submit a variety of compliance, financial strength, conflict of interest, and risk management information to EDGAR.
XBRL US outlined key recommendations to improve the taxonomy’s usability and clarity. Some entities are struggling to meet the deadline of August 2024 and XBRL US suggested delaying the requirements until the end of the year and proposed implementing more educational initiatives to help ease the pressure on entities.
The feedback also addressed technical issues within the taxonomy – such as inconsistencies, missing labels, and difficulty recognising elements. Recommendations included standardising the use of brackets, adding documentation labels, and incorporating vowels in element names for easier identification.
For further details, read the comment letter here.
