Do I need to run reports and monitor the results?
YES.
Under CFTC Rule 49.13, SDRs are required to assist the CFTC in any standing swap surveillance objectives set by the CFTC as well as perform any other monitoring, screening, and analysis tasks upon request by the CFTC. Notwithstanding, KOR SDR is not a “self-regulatory organization” under the CEA or CFTC regulations, and as such, KOR SDR’s role with respect to any such objectives or tasks will be limited to monitoring, screening, and analyzing the SDR Data.
KOR will monitor, screen, and analyze SDR Data for the purpose of any standing swap surveillance objectives^18 that the Commission may establish as well as perform specific monitoring, screening, and analysis tasks based on ad hoc requests by the Commission. KOR SDR will only create new custom reports or make changes to existing reports based on Commission requests made in writing and sent to the CCO.
KOR SDR will provide automated reports of invalid, missing, and/or late data. It is the duty of the Clients to monitor these reports and correct data or reporting issues. Where KOR SDR identifies Clients, who are not correcting data or have consistently large numbers of late reports, KOR SDR Compliance department in connection with the Client Services department will contact the Client to work to resolve the issues. The Commission will be granted access to these reports upon request.
surveillance objectives^18: KOR SDR is not a Self-Regulatory Organization (“SRO”).
Why does the SDR monitor timeliness?
KOR SDR shall notify the Commission of any swap transaction for which the real-time Swap Data was not received by KOR SDR in accordance with Part 43 of CFTC rules where KOR SDR has the information necessary to determine missing 43 submissions based on Part 45 data. In order to provide the Commission with accurate reports on Part 43 data, KOR SDR may require information regarding the applicability of Public Dissemination of a swap on the Part 45 message.
KOR SDR shall provide the Commission and the Reporting Counterparty or their Delegated Reporter with a daily report of all swaps reported for Part 43 that day that did not meet the prescribed timelines. F
| Timeliness calculations |
References: CFTC Rule(s) §49.15(c).
Do I need to monitor rejection reports?
Yes.
KOR SDR shall validate SDR Data ASATP after such data is accepted according to the validation conditions set forth by the Commission in the SDR Technical Specifications and any other validations KOR SDR deems necessary to meet the SDR Regulations.
For each required swap creation data or required swap continuation data report submitted to KOR SDR, the KOR Swap Data Repository shall notify the Reporting Counterparty, SEF, DCM, DCO, or Delegated Reporter submitting the report whether the report satisfied the Swap Data validation procedures. KOR SDR shall provide such notification ASATP after accepting the required swap creation data or required swap continuation data report.
If the submitted SDR Data contains one or more data validation errors, KOR SDR shall distribute a Data Validation Error Message to the Client that submitted such SDR Data ASATP after acceptance of such data. Each Data Validation Error Message shall indicate which specific data validation error(s) were identified in the SDR Data.
If a required swap creation data or required swap continuation data report to KOR SDR does not satisfy the Data Validation Procedures of KOR SDR, the Reporting Counterparty, SEF, DCM, or DCO required to submit the report has not yet satisfied its obligation to report required swap creation or continuation data within the timelines set forth in CFTC Rule(s) 45.3 and 45.4. The Reporting Counterparty, SEF, DCM, or DCO has not satisfied its obligation until it submits the required Swap Data report per the KOR SDR Technical Specifications which includes the requirement to satisfy the Data Validation Procedures of KOR SDR, within the applicable time deadline set forth in CFTC Rule(s) 45.3 and 45.4.
KOR SDR will not accept a joint submission of Swap Transaction and Pricing Data and Swap Data. Part 43 and 45 messages must be submitted independently but provide the required information to tie the two to the same UTI.
References: CFTC Rule(s) §49.10(c), 45.13(b)(1)
What reports should I monitor?