Part 45: Correction of errors
Any SEF, DCM, or Reporting Counterparty that by any means becomes aware of any error relating to Swap Data that it was required to report shall correct the error. To correct an error, the SEF, DCM, or Reporting Counterparty shall submit complete and accurate Swap Data to KOR SDR or completely and accurately report Swap Data for a swap that was not previously reported to a Swap Data Repository, as applicable. The requirement to correct any error applies regardless of the state of the swap that is the subject of the Swap Data, including a swap that has terminated, matured, or otherwise is no longer considered to be an open swap. The KOR User Guide outlines how Clients must report corrections to archived swaps.
References: CFTC Rule(s) §45.14(a)(1).
Part 45: Timing requirement for correcting errors
The SEF, DCM, or Reporting Counterparty shall correct any error ASATP after discovery of the error. In all cases, errors shall be corrected within seven Business Days after discovery. Any error that a Reporting Counterparty discovers or could have discovered during the verification process is considered discovered as of the moment the Reporting Counterparty began the verification process during which the error was first discovered or discoverable.
References: CFTC Rule(s) §45.14(a)(1)(i).
Part 45: Notification of failure to timely correct
If the SEF, DCM, or Reporting Counterparty will, for any reason, fail to timely correct an error, the SEF, DCM, or Reporting Counterparty shall notify the Commission in the manner and timeframe prescribed by the Commission in CFTC Staff Letter No. 22-06.
In the case that the submitting Client believes the issue in correcting data to be related to the KOR SDR Technical Specification validations, the UPI not being available, the KOR SDR validations, or any issue with submitting data to KOR SDR where the Client believes the issue is internal to the KOR system, the Client is required to notify KOR SDR Client support and enter a ticket (How do I create a support ticket) as soon as practicable but not later than the Business Day following the discovery.
References: CFTC Rule(s) §45.14(a)(1)(ii).
Part 45: Form and manner for error correction
A SEF, DCM, or Reporting Counterparty shall conform to KOR SDR’s technical specifications created for the correction of errors.
References: CFTC Rule(s) §45.14(a)(1)(iii).
Part 45: Exception
The requirements to correct errors only apply to errors in Swap Data relating to swaps for which the record retention period under CFTC Rule § 45.2 has not expired as of the time the error is discovered. Errors in Swap Data relating to swaps for which the record retention periods under CFTC Rule § 45.2 have expired at the time that the errors are discovered are not subject to the requirements to correct errors. If a Client attempts to submit a swap that is past the retention period, the message shall fail SDR validations.
References: CFTC Rule(s) §45.14(a)(3).
Non-Reporting Party Requirements
Any non-Reporting Counterparty that by any means becomes aware of any error in the Swap Transaction and Pricing Data for a swap to which it is the non-Reporting Counterparty, shall notify the Reporting Counterparty for the swap of the error ASATP after discovery, but not later than three Business Days following discovery of the error. If the non-Reporting Counterparty does not know the identity of the Reporting Counterparty, the non-Reporting Counterparty shall notify the SEF or DCM where the swap was executed of the error ASATP after discovery, but no later than three Business Days following the discovery. Such notice from the non-Reporting Counterparty to the SEF, DCM, or Reporting Counterparty constitutes discovery.
References: CFTC Rule(s) §45.14(a)(2) 43.3(e)(2).