Washington, D. C. — The Commodity Futures Trading Commission’s
Division of Data (DOD) today issued an advisory that provides
instructions for notifying staff when a swap execution facility (SEF),
designated contract market (DCM), or reporting counterparty determines
that it is unable to timely correct a swap data error.
Regulations 45. 14(a) and 43. 3(e) require SEFs, DCMs, and reporting
counterparties to correct swap data errors as soon as technologically
practicable following discovery and, in all cases, within seven
business days following discovery. A SEF, DCM, or reporting
counterparty must notify staff if it determines that it will not
timely correct a swap data error. The advisory provides instructions
for submitting error correction notifications. The advisory also
appends a Swap Data Error Correction Notification Form that enumerates
information sufficient to provide an initial assessment of the scope
of the error and provides a SEF, DCM, or reporting counterparty an
opportunity to present an initial remediation plan.
Additionally, through the advisory, CFTC staff aims to
highlight a specific swap data reporting error—swaps that erroneously
appear in swap data repositories as open swaps, despite having been
terminated—and notify market participants of the significant scope of
this error; remind market participants of ongoing obligations to
correct swap data errors; and clearly state the importance staff
places on correcting such errors.
On January 31, 2022, DOD
took a no-action position in CFTC Letter No. 22-03 with respect to
certain reporting requirements, including the error correction
notification requirements in CFTC Regulations 45. 14(a) and 43. 3(e).
Upon the expiration of that no-action position on December 5, 2022, a
SEF, DCM, or reporting counterparty will be required to notify CFTC
staff if it will fail to timely correct a swap data error by
submitting the Swap Data Error Correction Notification Form as noted
in the instructions in the advisory.
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