Federal Register / Vol. 89, No. 217 / Friday, November 8, 2024 / Notices 88829 

1 15 U.S.C. 78m(n)(1); 17 CFR 240.13n–1. A copy 

of KOR’s application on Form SDR and nonconfidential exhibits thereto are available for public 

viewing on the Commission’s website. 

2 15 U.S.C. 78k–1(b). 

3The amendments to KOR’s application were 

filed to update certain exhibits, including those 

addressing the disclosure document, financial 

statements, and fee schedule. Any reference to the 

KOR Application in this order means the January 

26, 2023 application, as amended by the 

amendments received on August 11, 2023 and 

February 23, 2024. 

4Release No. 34–100638 (Aug. 2, 2024), 89 FR 

64526 (Aug. 7, 2024) (‘‘KOR Notice’’). 

5 15 U.S.C. 78m(n). 

6See id. 

7See Release No. 34–74246 (Feb. 11, 2015), 80 FR 

14438, 14438 (Mar. 19, 2015) (‘‘SDR Adopting 

Release’’). In 2016, the Commission subsequently 

amended 17 CFR 240.13n–4 to address third-party 

regulatory access to SBS data obtained by an SDR. 

See Release No. 34–78716 (Aug. 29, 2016), 81 FR 

60585 (Sept. 2, 2016). 

8 12 U.S.C. 5301. 

9See Release No. 34–80359 (Mar. 31, 2017), 82 FR 

16867 (Apr. 6, 2017). 

10Release No. 34–74244 (Feb. 11, 2015), 80 FR 

14563 (Mar. 19, 2015); Release No. 34–78321 (July 

14, 2016), 81 FR 53546 (Aug. 12, 2016). Regulation 

SBSR and the SDR Rules are referred to collectively 

as the ‘‘SBS Reporting Rules.’’ 

11See 17 CFR 242.909. 

12See Form SDR, Instruction 2. 

13Release No. 34–87780 (Dec. 18, 2019), 85 FR 

6270, 6347 (Feb. 4, 2020) (‘‘ANE Adopting 

Release’’). 

14See id. Under Regulation SBSR, the first 

compliance date (‘‘Compliance Date 1’’) for affected 

persons with respect to an SBS asset class is the 

first Monday that is the later of: (i) six months after 

the date on which the first SDR that can accept 

transaction reports in that asset class registers with 

the Commission; or (ii) one month after the 

compliance date for registration of SBS dealers and 

major SBS participants (‘‘SBS entities’’). Id. at 6346. 

The compliance date for registration of SBS entities 

is Oct. 6, 2021. See id. at 6270, 6345. 

15See id. The specific rule provisions of the SBS 

Reporting Rules affected by the no-action statement 

are discussed in Part II.B. 

16See 15 U.S.C. 78m(n)(3). 

17 17 CFR 240.13n–1(c)(3). 

18See id. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101511; File No. SBSDR– 

2023–01] 

Security-Based Swap Data 

Repositories; KOR Reporting, Inc.; 

Order Approving Application for 

Registration as a Security-Based Swap 

Data Repository 

November 4, 2024. 

I. Introduction 

On January 26, 2023, KOR Reporting, 

Inc. (‘‘KOR’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) an application (the 

‘‘KOR Application’’) on Form SDR to 

register as a security-based swap data 

repository (‘‘SDR’’) pursuant to section 

13(n)(1) of the Securities Exchange Act 

of 1934 (‘‘Exchange Act’’) and 17 CFR 

240.13n–1 (‘‘Rule 13n–1’’) thereunder,1

and as a securities information 

processor (‘‘SIP’’) under section 11A(b) 

of the Exchange Act.2 KOR intends to 

operate as a registered SDR for securitybased swap (‘‘SBS’’) transactions in the 

equity, credit, and interest rate 

derivatives asset classes. KOR 

subsequently filed amendments to its 

application on the following dates: 

August 11, 2023, and February 23, 

2024.3

Notice of the KOR Application was 

published in the Federal Register for 

public comment on August 7, 2024,4

and the Commission received no 

comment letters in response. As 

discussed in Parts III and IV below, the 

Commission has carefully reviewed the 

KOR Application. This order grants 

KOR’s application to register as an SDR 

in the asset classes noted above and as 

a SIP. 

II. Background 

A. SDR Registration, Duties, and Core 

Principles 

Section 13(n) of the Exchange Act 

makes it unlawful for any person, unless 

registered with the Commission, 

directly or indirectly, to make use of the 

mails or any means or instrumentality of 

interstate commerce to perform the 

functions of an SDR.5 To be registered 

and maintain registration, an SDR must 

comply with certain requirements and 

core principles described in section 

13(n), as well as any requirements that 

the Commission may impose by rule or 

regulation.6 In 2015, the Commission 

adopted 17 CFR 240.13n–1 to 13n–12 

under the Exchange Act to establish 

Form SDR, the procedures for 

registration as an SDR, and the duties 

and core principles applicable to an 

SDR (‘‘SDR Rules’’).7 The Commission 

provided a temporary exemption from 

compliance with the SDR Rules and also 

extended exemptions from the 

provisions of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (‘‘Dodd-Frank Act’’) 8 set forth in a 

Commission order providing temporary 

exemptions and other temporary relief 

from compliance with certain 

provisions of the Exchange Act 

concerning security-based swaps, and 

these temporary exemptions expired in 

2017.9

The Commission also has adopted 17 

CFR 242.900 to 909 under the Exchange 

Act (collectively, ‘‘Regulation SBSR’’), 

which governs regulatory reporting and 

public dissemination of security-based 

swap transactions.10 Among other 

things, Regulation SBSR requires each 

registered SDR to register with the 

Commission as a SIP,11 and the Form 

SDR constitutes an application for 

registration as a SIP, as well as an 

SDR.12

In 2019, the Commission stated that 

implementation of the SBS Reporting 

Rules can and should be done in a 

manner that carries out the fundamental 

policy goals of the SBS Reporting Rules 

while minimizing burdens as much as 

practicable.13 Noting ongoing concerns 

among market participants about 

incurring unnecessary burdens and the 

Commission’s efforts to promote 

harmonization between the SBS 

Reporting Rules and swap reporting 

rules, the Commission took the position 

that, for four years following Regulation 

SBSR’s Compliance Date 1 in each asset 

class,14 certain actions with respect to 

the SBS Reporting Rules would not 

provide a basis for a Commission 

enforcement action.15 The no-action 

statement’s relevance to KOR’s 

application for registration as an SDR 

and SIP is discussed further below. 

B. Standard for Registration 

As stated above, to be registered with 

the Commission as an SDR and 

maintain such registration, an SDR is 

required to comply with the 

requirements and core principles 

described in section 13(n) of the 

Exchange Act, as well as with any 

requirement that the Commission may 

impose by rule or regulation.16 In 

addition, Rule 13n–1(c)(3) under the 

Exchange Act provides that the 

Commission shall grant the registration 

of an SDR if it finds that the SDR is so 

organized, and has the capacity, to be 

able to: (i) assure the prompt, accurate, 

and reliable performance of its functions 

as an SDR; (ii) comply with any 

applicable provisions of the securities 

laws and the rules and regulations 

thereunder; and (iii) carry out its 

functions in a manner consistent with 

the purposes of section 13(n) of the 

Exchange Act and the rules and 

regulations thereunder.17 The 

Commission shall deny the registration 

of an SDR if it does not make any such 

finding.18 Similarly, to be registered 

with the Commission as a SIP, the 

Commission must find that such 

applicant is so organized, and has the 

capacity, to be able to assure the 

prompt, accurate, and reliable 

performance of its functions as a SIP, 

comply with the provisions of the 

Exchange Act and the rules and 

regulations thereunder, carry out its 

functions in a manner consistent with 

the purposes of the Exchange Act, and, 

insofar as it is acting as an exclusive 


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19See 15 U.S.C. 78k–1(b)(3). 

20See SDR Adopting Release, supra note 7, at 

14459. 

21See id. at 14458. 

22See id. at 14458–59. 

23See supra notes 12–14 and accompanying text. 

24See supra note 14. 

25The ANE Adopting Release provides additional 

discussion of the particular aspects of the affected 

rules that would not provide a basis for an 

enforcement action. See ANE Adopting Release, 

supra note 12, at 6347–48. 26See id. at 6348. 27See id. For example, an applicant need not 

describe in Exhibit S its functions as a SIP. 28See Rulebook, Ex. HH, sec. 0.1; see also Form 

SDR. 29See 17 CFR 49.3(b) (providing that the CFTC 

may grant provisional registration of a swap data 

repository if such applicant is in substantial 

compliance with the standards set forth in 17 CFR 

49.3(a)(4) and is able to demonstrate operational 

capability, real-time processing, multiple 

redundancy and robust security controls); 17 CFR 

49.3(a)(4) (setting forth the standard for approval for 

granting registration to a swap data repository). 

30See Form SDR, cover letter from Tara Collier 

Manuel, Chief Compliance Officer and Head of 

Regulatory Products, KOR Reporting, Inc. 

31Capitalized terms not defined in this order are 

defined in the KOR Application. 

32See Rulebook, Ex, HH, sec 0.1; see also Form 

SDR; KOR Reporting Inc. Certificate of 

Incorporation, Ex. E–1, sec. 1.0. 

33See KOR SEC SBSDR Disclosure Document 

v1.2, Ex. GG–2, sec. 9.0. 

34See Rulebook, Ex. HH, sec. 3.2.2; see also 

Bylaws for KOR Reporting, Inc., Ex. E–2, sec. 1.6. 

35See Rulebook, Ex. HH, sec. 3.2.3; see also 

Governance Principles, Ex. D–1, sec. 3.4.1; KOR 

SEC SBSDR Disclosure Document v1.2, Ex. GG–2, 

sec. 9.1.2.3. 

36See Rulebook, Ex. HH, sec. 3.2.2; see also 

Governance Principles, Ex. D–1, sec. 3.2. 

37See Rulebook, Ex. HH, sec. 3.2.2. 

processor, operate fairly and 

efficiently.19

In determining whether an applicant 

meets the criteria set forth in Rule 13n– 

1(c), the Commission will consider the 

information reflected by the applicant 

on its Form SDR, as well as any 

additional information obtained from 

the applicant. For example, Form SDR 

requires an applicant to provide a list of 

the asset classes for which the applicant 

is collecting and maintaining data or for 

which it proposes to collect and 

maintain data, a description of the 

functions that it performs or proposes to 

perform, general information regarding 

its business organization, and contact 

information.20 Obtaining this 

information and other information 

reflected on Form SDR and the exhibits 

thereto—including the applicant’s 

overall business structure, financial 

condition, track record in providing 

access to its services and data, 

technological reliability, and policies 

and procedures to comply with its 

statutory and regulatory obligations— 

will enable the Commission to 

determine whether to grant or deny an 

application for registration.21

Furthermore, the information requested 

in Form SDR will enable the 

Commission to assess whether the 

applicant is so organized and has the 

capacity to comply and carry out its 

functions in a manner consistent with 

the Federal securities laws and the rules 

and regulations thereunder, including 

the SBS Reporting Rules.22

Consistent with the Commission’s noaction statement in the ANE Adopting 

Release,23 an entity wishing to register 

with the Commission as an SDR must 

still submit an application on Form SDR 

but can address the rule provisions 

included in the no-action statement by 

discussing how the SDR complies with 

comparable Commodity Futures Trading 

Commission (‘‘CFTC’’) requirements.24

Accordingly, in such instances the 

Commission will not assess an SDR 

application for consistency or 

compliance with the rule provisions 

included in the Commission’s no-action 

statement. Specifically, the Commission 

identified the following provisions as 

not providing a basis for an enforcement 

action against a registered SDR for the 

duration of the relief provided in the 

Commission statement: under 

Regulation SBSR, aspects of 17 CFR 

242.901(a), 901(c)(2) through (7), 901(d), 

901(e), 902, 903(b), 906(a) and (b), and 

907(a)(1), (a)(3), and (a)(4) through (6); 

under the SDR Rules, aspects of section 

13(n)(5)(B) of the Exchange Act and 17 

CFR 240.13n–4(b)(3) thereunder, and 

aspects of 17 CFR 240.13n–5(b)(1)(iii); 

and under section 11A(b) of the 

Exchange Act, any provision pertaining 

to SIPs.25 Thus, an SDR applicant will 

not need to include materials in its 

application explaining how it would 

comply with the provisions stated 

above, and could instead rely on its 

discussion about how it complies with 

comparable CFTC requirements.26 The 

applicant may instead represent in its 

application that it: (i) is registered with 

the CFTC as a swap data repository; (ii) 

is in compliance with applicable 

requirements under the swap reporting 

rules; (iii) satisfies the standard for 

Commission registration of an SDR 

under Rule 13n–1(c); and (iv) intends to 

rely on the no-action statement included 

in the ANE Adopting Release for the 

period set forth in the ANE Adopting 

Release with respect to any SBS asset 

class or classes for which it intends to 

accept transaction reports.27

III. Review of the KOR Application 

Under SBS Reporting Rules 

As stated above, KOR intends to 

operate as a registered SDR for the 

equity, credit, and interest rate 

derivatives asset classes.28 In its 

application, KOR represents that it is 

provisionally registered with the CFTC 

as a swap data repository,29 is in 

compliance with applicable 

requirements under the CFTC reporting 

rules applicable to a registered swap 

data repository, and intends to rely on 

the Commission’s position outlined in 

the ANE Adopting Release for 

applicable reporting rules and SDR 

duties for the period set forth therein.30

Below is a review of the representations 

made in the application materials for 

the KOR security-based swap data 

repository (‘‘KOR SBSDR’’) under the 

SBS Reporting Rules, taking into 

account KOR’s reliance on the 

Commission’s position outlined in the 

ANE Adopting Release.31

A. Organization and Governance 

1. Summary of KOR’s Application 

KOR is a Delaware corporation and 

along with its affiliate, KOR Financial 

Inc. (‘‘KOR Financial’’), is a wholly 

owned subsidiary of KOR US Holdings, 

Inc. (‘‘KOR Holdings’’).32 KOR is 

governed by a board of directors (‘‘KOR 

Board’’).33 The KOR Board is composed 

of at least three Directors with a 

majority being independent Directors 

and at least one director being a ‘‘Public 

Director’’ as defined in applicable CFTC 

regulations.34 According to the KOR 

Rulebook, KOR Board members should 

have the characteristics essential for 

effectiveness as a member of the Board, 

including but not limited to: (a) 

integrity, objectivity, sound judgment 

and leadership; (b) the relevant 

expertise and experience required to 

offer advice and guidance to the Chief 

Executive Officer and other members of 

senior management; (c) the ability to 

make independent analytical inquiries; 

(d) the ability to collaborate effectively 

and contribute productively to the 

Board’s discussions and deliberations; 

(e) an understanding of the company’s 

business, strategy and challenges; (f) the 

willingness and ability to devote 

adequate time and effort to Board 

responsibilities and to serve on 

Committees at the request of the Board; 

and (g) not being a disqualified 

person.35 The KOR Board is composed 

of individuals selected from the 

following groups: employees of KOR, 

clients with derivatives industry 

experience, independents, and members 

of senior management.36 According to 

the KOR Application, representatives of 

market participants, including endusers, are provided the opportunity to 

participate in the process for 

nominating directors with the right to 

petition for alternative candidates.37


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38See Rulebook, Ex. HH, sec. 3.2.4; see also 

Governance Principles, Ex. D–1, sec. 3.5; KOR SEC 

SBSDR Disclosure Document v1.2, Ex. GG–2, sec. 

9.1.2.4. 39See Rulebook, Ex. HH, sec. 3.2.4; see also 

Governance Principles, Ex. D–1, sec. 3.5; Narrative 

explaining fitness standards of the Board, Ex. D–3, 

sec. 3.0; KOR SEC SBSDR Disclosure Document 

v1.2, Ex. GG–2, sec. 9.1.2.4. 40See Rulebook, Ex. HH, sec. 3.1.1; see also 

Governance Principles, Ex. D–1, sec. 2.0; KOR SEC 

SBSDR Disclosure Document v1.2, Ex. GG–2, sec. 

9.1.1.1. 

41See Rulebook, Ex. HH, sec. 12.1; see also 

Governance Principles, Ex. D–1, sec. 14.2. 

42See Rulebook, Ex. HH, sec. 12.2; see also 

Personnel Qualification, Ex. P, sec. 2.2. 

43See Rulebook, Ex. HH, sec. 12.2. 

44See id. 

45See Rulebook, Ex. HH, sec 3.2.5; see also Board 

of Directors Conflicts of Interest Policy, Ex. J–2, sec. 

1.0; Governance Principles, Ex. D–1, sec. 4.0; KOR 

SEC SBSDR Disclosure Document v1.2, Ex. GG–2, 

sec. 9.1.2.5. 

46See Rulebook, Ex. HH, sec. 11.2; see also Board 

of Directors Conflicts of Interest Policy, Ex. J–2, sec. 

2.0. 

47See Board of Directors Conflicts of Interest 

Policy, Ex. J–2, sec. 3.0. 

48See id. 

49See id. 

50See id. 

51See id. 

52See id. 

53See id. 

54See id. 

55 15 U.S.C 78m(n)(7)(B); 17 CFR 240.13n–4(c)(2). 

56 17 CFR 240.13n–4(c)(2)(i)–(iv). 

The KOR Board will review annually 

the relationships that each Director has 

with KOR (either directly or as a 

partner, equity holder or officer of an 

organization that has a relationship with 

KOR).38 According to KOR, following 

such annual review, only those 

Directors who the KOR Board 

affirmatively determines have no 

material relationship with KOR (either 

directly or as a partner, equity holder or 

officer of an organization that has a 

relationship with KOR) will be 

considered Independent Directors, 

subject to additional qualifications 

prescribed by applicable law.39

According to KOR, the KOR Board’s 

principal oversight functions are to: (a) 

review, approve, and monitor KOR’s 

major strategic financial business 

activities and opportunities, including 

declarations of dividends and major 

transactions; (b) review, approve and 

monitor the KOR’s annual budget; (c) 

review, monitor and take reasonable 

actions with respect to KOR’s financial 

performance; (d) review, assess, and 

provide oversight of KOR’s risk 

management practices, the integrity and 

adequacy of its enterprise risk 

management program, which is 

designed to identify, manage, and plan 

for the KOR SBSDR, compliance, 

financial, operational, reputational, and 

strategic and commercial risks; (e) 

select, evaluate and compensate the 

Chief Compliance Officer and, if 

necessary, appoint a replacement; and 

(f) review and monitor plans for the 

succession of the Chief Executive 

Officer (‘‘CEO’’) and other members of 

senior management.40

In addition, the application provides 

that the KOR Board is responsible for 

the appointment and removal of the 

Chief Compliance Officer (‘‘CCO’’) and 

approval of CCO compensation, which 

is at the discretion of the Board and 

effected by a majority vote.41 The CCO 

is responsible for overseeing the KOR 

SBSDR Compliance Department and 

ensuring compliance with the 

applicable rules.42 The CCO consults 

with the CEO on the adequacy of 

resources and makes recommendations 

where needed.43 The CCO has 

supervisory authority to inspect books 

and records and interview KOR SBSDR 

employees. Upon identification of a 

potential violation of any regulatory 

requirement or internal policy or 

procedure, the CCO is responsible for 

taking steps to investigate and remediate 

any such matter.44

According to KOR, the KOR Board has 

adopted a Conflict of Interest Policy that 

incorporates various provisions of 

applicable corporate law and other 

standards adopted by KOR to ensure 

that KOR Board and committee 

decisions are not impacted by conflicts 

of interests.45 With regard to director 

conflicts of interest, the application 

provides that a director conflict is 

present whenever the interests of KOR 

compete with the interests of a director 

or any party associated with a director 

and interfere with the director’s ability 

to impartially vote on the matter 

pending before the KOR Board.46 A 

director’s interest may be direct or 

indirect through business investment or 

on ‘‘immediate family member’’ 

(defined as a person’s spouse, domestic 

partner, parents, stepparents, children, 

stepchildren, siblings, mothers and 

fathers-in-law, sons and daughters-inlaw and brothers and sisters-in-law and 

anyone residing in such person’s home 

(other than a tenant or employee)).47

The application also provides that any 

director who believes he or she may 

have a conflict of interest relating to a 

matter pending before the KOR Board or 

any committee must provide written 

notification to the CCO, General 

Counsel, the Board Chairman, and the 

CEO prior to consideration of the matter 

by the KOR Board or committee.48 The 

notice should include all relevant 

material facts to enable the KOR Board 

or Board committee, in consultation 

with the CCO, General Counsel and 

outside legal counsel, if necessary, to 

determine whether a conflict of interest 

exists.49

The application further provides that 

in the event the KOR Board or 

committee determines the director has a 

conflict of interest or the appearance of 

a conflict of interest, the KOR Board or 

committee, after consultation with the 

General Counsel and outside legal 

counsel, if necessary, shall determine 

the appropriate action to be taken.50 As 

a general matter, KOR believes it is 

appropriate for a director to abstain 

from voting on a matter in which he or 

she has an actual conflict of interest or 

the appearance of a conflict of interest.51

The recusal from voting shall be 

mandatory when it is deemed 

appropriate.52 In the event a director 

abstains because of a conflict of interest, 

the abstention shall be noted in the 

minutes of the meeting.53 In addition to 

this policy, directors who serve on any 

committee established under KOR’s 

rules must also follow the procedure set 

forth in the applicable Rulebook.54

2. Discussion 

Section 13(n)(7)(B) of the Exchange 

Act and Rule 13n–4(c)(2) thereunder 

require an SDR to establish governance 

arrangements that are transparent to 

fulfill public interest requirements and 

to support the objectives of the Federal 

Government, owners, and 

participants.55 In addition, Rule 13n– 

4(c)(2) requires an SDR to (i) establish 

well-defined governance arrangements 

that include a clear organizational 

structure with effective internal 

controls; (ii) establish governance 

arrangements that provide for fair 

representation of market participants; 

(iii) provide representatives of market 

participants, including end-users, with 

the opportunity to participate in the 

process for nominating directors and 

with the right to petition for alternative 

candidates; and (iv) establish, maintain, 

and enforce written policies and 

procedures reasonably designed to 

ensure that senior management and 

each member of the board or committee 

that has authority to act on behalf of the 

board possess requisite skills and 

expertise to fulfill their responsibilities 

in the management and governance of 

the SDR, have a clear understanding of 

their responsibilities, and exercise 

sound judgment about the SDR’s 

affairs.56

Furthermore, Rule 13n–4(b)(11) 

requires an SDR to designate an 

individual to serve as CCO, and Rule 

13n–11(a) requires the SDR to identify 

on Form SDR the person so 


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57 17 CFR 240.13n–4(b), 13n–11(a). 

58 17 CFR 240.13n–11(a). 

59 17 CFR 240.13n–11(c)(1)–(7). 

60 15 U.S.C. 78m(n)(7)(C)(i), (ii). 

61 17 CFR 240.13n–4(c)(3)(i)–(iii). 

62See Rulebook, Ex. HH, sec. 4.1; see also Access 

Limiting Criteria, Ex. V, sec. 1.0; Client Access 

Requirements, Ex. W, sec. 2.1; Client Onboarding 

and Access Guide, Ex. X, sec. 1.0. 

63See Rulebook, Ex. HH, sec. 4.1; see also Access 

Limiting Criteria, Ex. V, sec. 1.0; Client Access 

Requirements, Ex. W, sec. 2.1; Client Onboarding 

and Access Guide, Ex. X, sec. 1.0. 

64See KOR Universal Services Agreement, Ex. I– 

2. 

65See Rulebook, Ex. HH, sec. 4.1; see also Access 

Limiting Criteria, Ex. V, sec. 1.0; Client Access 

Requirements, Ex. W, sec. 2.1; Client Onboarding 

and Access Guide, Ex. X, sec. 1.0; KOR SEC SBSDR 

Disclosure Document v1.2, Ex. GG–2, sec. 1.1. 

66See Rulebook, Ex. HH, sec. 4.0; see also Client 

Onboarding and Access Guide, Ex. X, sec. 2.0. 

67See Rulebook, Ex. HH, sec. 4.5.1; see also 

Client Onboarding and Access Guide, Ex. X, sec. 

3.1; KOR SEC SBSDR Disclosure Document v1.2, 

Ex. GG–2, sec. 1.5.1. 

68See Rulebook, Ex. HH, sec. 4.2; see also Client 

Access Requirements, Ex. W, sec. 2.2; Client 

Onboarding and Access Guide, Ex. X, sec. 3.0. 

69See Rulebook, Ex. HH, sec. 4.3, 4.4; see also 

Client Access Requirements, Ex. W, sec. 2.3, 2.4. 

70See Rulebook, Ex. HH, sec. 4.5.2; see also 

Access Limiting Criteria, Ex. V, sec. 1.0. 

71See Rulebook, Ex. HH, sec. 4.5.2; see also 

Access Limiting Criteria, Ex. V, sec. 1.0. 

72See Rulebook, Ex. HH, sec. 4.5.2; see also 

Access Limiting Criteria, Ex. V, sec. 1.0. 

73See Rulebook, Ex. HH, sec. 4.5.2; see also 

Access Limiting Criteria, Ex. V, sec. 1.0. 

74See Rulebook, Ex. HH, sec. 4.5.2; see also 

Access Limiting Criteria, Ex. V, sec. 1.0. 

designated.57 Rule 13n–11(a) also 

requires that the compensation, 

appointment, and removal of the CCO 

shall require approval of a majority of 

the SDR’s board of directors.58 Rule 

13n–11(c) requires the CCO to: (i) report 

directly to the board of directors or to 

the senior officer; (ii) review compliance 

with section 13(n) of the Exchange Act 

and the rules thereunder; (iii) in 

consultation with the board or the 

senior officer, take reasonable steps to 

resolve any material conflicts of interest; 

(iv) be responsible for administering the 

policies and procedures required by 

section 13(n) of the Exchange Act and 

the rules thereunder; (v) take reasonable 

steps to ensure compliance with the 

Exchange Act and the SDR Rules 

thereunder; (vi) establish procedures for 

the remediation of noncompliance; and 

(vii) establish and follow appropriate 

procedures for the handling, 

management response, remediation, 

retesting, and closing of noncompliance 

issues.59

Additionally, section 13(n)(7)(C) of 

the Exchange Act requires an SDR to 

establish and enforce rules to minimize 

conflicts of interest in the decisionmaking process of the SDR and establish 

a process for resolving any such 

conflicts of interest.60 Rule 13n–4(c)(3) 

under the Exchange Act provides that 

an SDR must: (i) establish, maintain, 

and enforce written policies and 

procedures reasonably designed to 

identify and mitigate potential and 

existing conflicts of interest in the SDR’s 

decision-making process on an ongoing 

basis; (ii) with respect to the decisionmaking process for resolving any 

conflicts of interest, require the recusal 

of any person involved in such conflict 

from such decision-making; and (iii) 

establish, maintain, and enforce written 

policies and procedures regarding the 

SDR’s non-commercial and/or 

commercial use of the SBS transaction 

information that it receives.61

The Commission received no 

comments on the KOR Notice. As 

described above, the KOR Application 

includes provisions for the 

representation of market participants in 

the governance arrangements, as well as 

procedures providing an opportunity to 

participate in the process for 

nominating directors and the right to 

petition for alternative candidates. In 

addition, the KOR Application includes 

policies and procedures that set 

standards for the skills and expertise 

possessed by the KOR Board. 

More generally, the KOR Application 

sets forth an organizational structure 

that is clear and includes provisions for 

internal controls. The KOR Application 

includes provisions for a CCO that has 

been designated by the KOR Board and 

whose compensation, appointment, and 

removal is set by the KOR Board. In 

addition, the KOR Application includes 

policies and procedures that require the 

CCO to report to the senior officer and 

be responsible for maintaining 

compliance with applicable 

Commission rules, investigating any 

suspected violations thereof, and 

overseeing any necessary remediation. 

The KOR Application includes policies 

and procedures that identify and 

mitigate conflicts of interest, require the 

recusal from decision-making of 

members of the KOR Board when 

involved in a conflict, and delineate the 

commercial and non-commercial use of 

SBS transaction information received. 

B. Access and Information Security 

1. Summary of KOR’s Application 

According to KOR, access to and 

usage of its SDR service will be 

available to all market participants on a 

fair, open, and equal basis.62 The 

application provides that KOR does not 

and will not bundle or tie the offering 

of mandated regulatory services with 

ancillary services offered by KOR or a 

KOR affiliate.63 Further, KOR imposes 

the following qualification on clients of 

its services: (i) a valid Legal Entity 

Identifier (‘‘LEI’’), (ii) execution of 

membership documents, such as the 

KOR Universal Services Agreement 

(‘‘KOR SA’’) 64 and applicable 

Addendums, (iii) compliance with the 

KOR SBSDR Rulebook and KOR 

Technical Specifications as published 

by KOR, and (iv) successful passing of 

KOR Know Your Customer (KYC) 

procedures, which include compliance 

with Applicable Law, specifically those 

related to sanctions administered and 

enforced by the Office of Foreign Assets 

Control of the U.S. Department of the 

Treasury (‘‘OFAC’’).65

To be granted access to the KOR 

system, receive trade information, 

confirm or verify transactions, submit 

messages, or receive reports, a market 

participant must be an onboarded 

user.66 Users are required to maintain at 

least two Administrative Users on the 

KOR System; Administrative Users are 

responsible for creating, managing, and 

removing access to their company’s 

users and to other clients who are 

eligible to access the KOR System on 

behalf of the client including firms that 

have Third-Party Client access.67

To participate in the SDR services 

offered by KOR, each client will be 

required to enter into a KOR SA; by 

entering into the KOR SA each client 

agrees to be bound by the terms of the 

KOR SA, the KOR Rulebook, and any 

published policies and guides.68 In 

addition, the KOR Rulebook provides 

that where a client has authorized (i) a 

Delegated Reporter (a Third-Party 

Reporter or Related Entity Client under 

the same Parent) to submit on its behalf 

and access its data or (ii) a Third-Party 

Client to access its data, but not submit 

on its behalf, KOR will provide access 

to the Delegated Reporter or Third-Party 

Client so long as it has executed the 

appropriate KOR SA and applicable 

addendums and the client has granted 

permission through the Client Portal.69

Any market participant that has 

executed a Client Agreement may access 

SBSDR Data to which they are a party 

or for which they have been granted 

access on behalf of a client.70 Access to 

the KOR System is strictly limited to 

active users with valid permissions 

created by their client’s Administrative 

User.71 Once set up, users will be 

provided logins and the ability to access 

data in the KOR System.72 Access is 

driven off the client’s LEIs for which the 

user has been associated.73 Users may 

be granted access to multiple LEIs under 

the same Parent as related entities.74 A 

client’s designated Administrative Users 


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75See Rulebook, Ex. HH, sec. 4.5.4; see also 

Client Onboarding and Access Guide, Ex. X, sec. 

3.1. 

76See Rulebook, Ex. HH, sec. 4.5.4. 

77See id. 

78See id. 

79See Rulebook, Ex. HH, sec. 14.2; see also 

Denial, Revocation, or Suspension of Client Access 

Policy, Ex. Y, sec. 2.2. 

80See Rulebook, Ex. HH, sec. 14.2; see also 

Denial, Revocation, or Suspension of Client Access 

Policy, Ex. Y, sec. 2.2. 

81See Rulebook, Ex. HH, sec. 14.2; see also 

Denial, Revocation, or Suspension of Client Access 

Policy, Ex. Y, sec. 2.2. 

82See Rulebook, Ex. HH, sec. 14.2; see also 

Denial, Revocation, or Suspension of Client Access 

Policy, Ex. Y, sec. 2.2. 

83See Denial, Revocation, or Suspension of Client 

Access Policy, Ex. Y, sec. 2.3. 

84See id. 

85See id. 

86See Rulebook, Ex. HH, sec. 13.3.1. 

87See id. 

88See Rulebook, Ex. HH, sec. 13.3.2. 

89 17 CFR 240.13n–4(c)(1)(ii). 

90 17 CFR 240.13n–4(c)(1)(iii). 

91 17 CFR 240.13n–4(c)(1)(iv). 

92 17 CFR 240.13n–6. 

93See KOR SEC SBSDR Disclosure Document 

v1.2, Ex. GG–2, sec. 5.0. 

94See id. 

95See id. 

96See id. 

are expected to maintain correct user 

access at all times.75 In addition, 

following the end of each calendar 

quarter, all clients will have access to a 

report on current user access levels and 

a list of all clients to which they have 

granted access to their data.76 At least 

one of the designated Administrative 

Users assigned to each client must 

review the listing of users and other 

party access and confirm whether access 

should be maintained, removed or 

changed and make the appropriate 

updates.77 The KOR Rulebook also 

states that records of all user access are 

maintained and available for review by 

the client and KOR Compliance at all 

time.78

With respect to prohibiting or limiting 

a person’s access to SDR services, the 

KOR Rulebook outlines the process 

required for KOR to decline, revoke, or 

suspend a user of SDR services.79 For 

example, KOR’s CCO may deny a 

client’s access to the KOR system if 

required pursuant to applicable law 

(e.g., related to sanctions administered 

and enforced by OFAC or the direction 

of an applicable regulator), violation of 

KOR SBSDR Rules, or improper use of 

the system.80 The KOR Rulebook 

provides that KOR will notify the 

applicable regulator of such action.81 In 

addition, any such clients would receive 

written notice containing the grounds 

for determination and an opportunity to 

appeal the decision to the CCO and KOR 

Board by written request.82 KOR may 

restore access to a client following 

approval from the CCO and/or KOR 

Board.83 The CCO will consider the 

applicable law, regulatory requirements, 

and the Market Participant’s response to 

the cause of denial, revocation, or 

suspension.84 In addition, all decisions 

will be documented when determining 

whether to restore client’s access.85

The KOR Rulebook provides that KOR 

SBSDR will conduct regular, periodic, 

objective testing and review of its 

automated systems to ensure that they 

are reliable, secure, and have adequate 

scalable capacity.86 It also provides that 

KOR will conduct regular, periodic 

testing and review of its business 

continuity-disaster recovery 

capabilities.87 It also provides that KOR 

will, to the extent practicable: (a) 

coordinate with clients and service 

providers to participate in synchronized 

testing in a manner adequate to enable 

effective resumption of KOR SBSDR’s 

fulfillment of its duties and obligations 

following a disruption causing 

activation of KOR SBSDR’s Business 

Continuity and Disaster Recovery 

(BCDR) plan; (b) participate in periodic, 

synchronized testing of its BCDR Plan 

and the BCDR plans of its clients, and 

the BCDR plans required, as applicable, 

by each appropriate prudential 

regulator, the Financial Stability 

Oversight Council, the SEC, the 

Department of Justice or any other 

person deemed appropriate by the SEC; 

and (c) ensure that its BCDR plan take 

into account the BCDR plans of its 

telecommunications, power, water, and 

other essential service providers.88

2. Discussion 

Rule 13n–4(c)(1)(ii) under the 

Exchange Act requires an SDR to permit 

market participants to access specific 

services offered by the SDR separately.89

Rule 13n–4(c)(1)(iii) requires an SDR to 

establish, monitor on an ongoing basis, 

and enforce clearly stated objective 

criteria that would permit fair, open, 

and not unreasonably discriminatory 

access to services offered and data 

maintained by the SDR.90 Rule 13n– 

4(c)(1)(iv) requires an SDR to establish, 

maintain, and enforce written policies 

and procedures reasonably designed to 

review any prohibition or limitation of 

any person with respect to access to 

services offered, directly or indirectly, 

or data maintained by the SDR and to 

grant such person access to such 

services or data if such person has been 

discriminated against unfairly.91 In 

addition, Rule 13n–6 requires an SDR, 

with respect to those systems that 

support or are integrally related to the 

performance of its activities, to 

establish, maintain, and enforce written 

policies and procedures reasonably 

designed to ensure that its systems 

provide adequate levels of capacity, 

integrity, resiliency, availability, and 

security.92

The Commission received no 

comments on the KOR Notice. As 

described above, the KOR Application 

includes procedures for onboarding and 

maintaining ongoing access to users that 

are fair, open, reasonable and not 

unreasonably discriminatory. These 

procedures include user agreements that 

reflect clear and specific minimum 

standards for users to follow in seeking 

to access SBS data held at the SDR. The 

KOR Application also includes 

reasonable provisions for limiting, 

denying, and revoking access to SDR 

systems that include procedures for 

review and reconsideration of any 

determination related to limiting, 

denying, or revoking a user’s access. 

The procedures described above further 

help ensure that the access requirements 

are fair, open, and not unreasonably 

discriminatory. In addition, the KOR 

Application includes policies and 

procedures designed to ensure that the 

SDR’s automated systems maintain 

adequate levels of capacity, integrity, 

resiliency, availability, and security that 

protect against loss of data, employ 

geographic diversity in their site 

selection, and account for service 

disruptions. 

C. Acceptance and Use of SBS Data 

1. Summary of KOR’s Application 

According to KOR, data accepted and 

maintained by the SBSDR may not be 

used for commercial or business 

purposes by the SBSDR or any of its 

affiliated entities absent express written 

consent by the client providing that 

data.93 KOR SBSDR has implemented 

adequate ‘‘firewalls’’ or controls to 

protect the reported SBSDR data 

required to be maintained under SEC 

regulations from any improper 

commercial use.94 The application 

provides that a client that submits 

SBSDR data maintained by the SBSDR 

may permit the commercial use by 

providing express written consent not 

required to be reported to the SBSDR.95

If such client consent is given, KOR may 

not make such consented data available 

for commercial use prior to its public 

dissemination.96 KOR states that, in 

accordance with Exchange Act Rule 

13n–5(b)(5), it has established systems 

and user access restrictions reasonably 

designed to prevent any provision in a 

valid swap from being invalidated or 


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97See Rulebook, Ex. HH, sec. 9.2; see also Data 

Invalidation Policy, Ex. EE, sec. 1.0. 

98See Rulebook, Ex. HH, sec. 5.1.1, 5.1.2. 

99See Rulebook, Ex. HH, sec. 5.1.1. 

100See Rulebook, Ex. HH, sec. 5.3.1. 

101See id. 

102See id. 

103See id. 

104See Rulebook, Ex. HH, sec. 5.2. 

105See id. 

106See id. 

107See id. 

108See id. 

109See Rulebook, Ex. HH, sec. 11.0; see also 

Dispute Policy, Ex. CC, sec. 2.0. 

110See id. 

111 17 CFR 240.13n–5(b)(1)(i). 

112 17 CFR 240.13n–5(b)(1)(ii). 

113 17 CFR 240.13n–5(b)(3). 

114 17 CFR 240.13n–5(b)(5). 

115 17 CFR 240.13n–5(b)(6). 

116See 15 U.S.C. 78m(n)(5)(F); 17 CFR 240.13n– 

4(b)(8), 240.13n–9. 

117 17 CFR 240.13n–9. 

118See 17 CFR 240.13n–9(b)(2). 

modified through its verification or 

recording process.97

KOR SBSDR uses the LEI and the 

Unique Trade Identifier (‘‘UTI’’).98

Pursuant to KOR’s rulebook, individuals 

not eligible for an LEI should be 

reported using a Natural Person 

Identifier.99 KOR states that if a 

security-based swap counterparty is not 

eligible to receive an LEI as determined 

by the Global Legal Entity Identifier 

System, such counterparty will be 

identified in all recordkeeping and all 

Security-Based Swap Data reporting 

with a Natural Person Identifier.100 KOR 

further provides that it is the duty of the 

Reporting Side to always submit a 

unique and consistent Natural Person 

Identifier.101 Pursuant to KOR’s 

rulebook, to ensure that the Reporting 

Side consistently submits a unique 

value for the identifier, the Reporting 

Side must combine the LEI of the 

Reporting Side with the natural person’s 

email address associated with the 

National Person Identifier.102 Each 

client must maintain and renew its LEI 

in accordance with the standards set by 

the Global Legal Entity Identifier 

System.103

The application provides that each 

swap will be identified in all 

recordkeeping and all Security-Based 

Swap Data reporting by the use of a UTI, 

which will be created, transmitted, and 

used for each swap.104 Each registered 

entity and swap counterparty will 

include the UTI for a swap in all of its 

records and all of its Security-Based 

Swap Data reporting concerning that 

swap, from the time it creates or 

receives the UTI throughout the 

existence of the security-based swap 

and for as long as any records are 

required by applicable law or 

regulation.105 Every submission to KOR 

SBSDR must contain the appropriate 

UTI, otherwise the submission will be 

rejected. KOR SBSDR will validate the 

format and uniqueness of every UTI.106

If a party submits the incorrect UTI, 

pursuant to KOR’s rulebook, they must 

‘‘error’’ that UTI and resubmit the swap 

as a new message with the correct 

UTI.107 When the correct UTI is 

submitted it will be considered a new 

trade and, if it is submitted after the 

required reporting timelines, it will be 

classified as a late report.108

The application provides that KOR 

has established procedures and provides 

facilities for effectively resolving 

disputes over the accuracy of the SBSDR 

Transaction Data and positions that are 

recorded in the KOR SBSDR.109 When 

the Reporting Side does not agree with 

the accuracy of the reporting of a swap 

in KOR Trade Repository, but is 

prevented from amending the swap to 

what they believe to accurate, the client 

must (a) enter a ticket with KOR SBSDR 

support with the details of the issue and 

(b) submit an allowed value per the 

KOR Technical Specifications for the 

KOR SBSDR field that reflects the 

dispute.110

2. Discussion 

Rule 13n–5(b)(1)(i) under the 

Exchange Act requires an SDR to 

establish, maintain, and enforce written 

policies and procedures reasonably 

designed for the reporting of complete 

and accurate transaction data to the SDR 

and to accept all transaction data that is 

reported in accordance with such 

policies and procedures.111

Additionally, Rule 13n–5(b)(1)(ii) 

requires that if an SDR accepts any SBS 

transaction in a particular asset class, 

the SDR must accept all SBS 

transactions in that asset class that are 

reported to it in accordance with its 

policies and procedures.112 In addition, 

Rule 13n–5(b)(3) requires an SDR to 

establish, maintain, and enforce written 

policies and procedures reasonably 

designed to ensure that the transaction 

data and positions that it maintains are 

complete and accurate.113 Rule 13n– 

5(b)(5) requires an SDR to establish, 

maintain, and enforce written policies 

and procedures reasonably designed to 

prevent any provision in a valid SBS 

transaction from being invalidated or 

modified through the procedures or 

operations of the SDR.114 Rule 13n– 

5(b)(6) requires an SDR to establish 

procedures and provide facilities 

reasonably designed to effectively 

resolve disputes over the accuracy of the 

transaction data and positions that are 

recorded in the SDR.115

Furthermore, section 13(n)(5)(F) of the 

Exchange Act and Rule 13n–4(b)(8) 

thereunder each require an SDR to 

maintain the privacy of any and all SBS 

transaction information that the SDR 

receives.116 In addition, Rule 13n– 

9(b)(1) requires an SDR to establish, 

maintain, and enforce written policies 

and procedures reasonably designed to 

protect the privacy of any and all SBS 

transaction information that the SDR 

receives and that include policies and 

procedures to protect the privacy of any 

and all SBS transaction information that 

the SDR shares with affiliates and nonaffiliated third parties.117 Rule 13n– 

9(b)(2) also requires an SDR to establish, 

and maintain safeguards, policies, and 

procedures reasonably designed to 

prevent the misappropriation or misuse, 

directly or indirectly, of any 

confidential information received by the 

SDR, material non-public information, 

or intellectual property, such as trading 

strategies or portfolio positions, by: (i) 

limiting access to such information and 

intellectual property; (ii) having 

standards for trading by persons 

associated with the SDR for their 

personal benefit or the benefit of others; 

and (iii) having adequate oversight to 

ensure compliance with these 

safeguards, policies, and procedures.118

The Commission received no 

comments on the KOR Notice. As 

described above, the KOR Application 

includes policies and procedures 

designed to protect transaction data and 

its systems by restricting access to users, 

who are obligated to comport with 

KOR’s rules in a manner that facilitates 

KOR’s compliance with its obligations 

under Commission rules. The 

Commission views this approach as 

reasonable. Access to KOR’s systems to 

view trade data or verify information is 

conditioned such that KOR retains the 

ability to protect the data, its systems, 

and its users. KOR retains the 

responsibility, among other things, to 

ensure that its policies and procedures 

are reasonably designed to: (i) ensure 

trade data reported to it is complete and 

accurate, as required under Rule 13n– 

5(b)(1); (ii) ensure that its systems 

provide adequate levels of capacity, 

integrity, resiliency, availability and 

security, as required under Rule 13n–6; 

and (iii) ensure that it protects the 

privacy and confidentiality of 

transaction information, as required 

under Rule 13n–9(b). Additionally, the 

KOR Application includes procedures 

designed to ensure that any valid 

provisions of trade information are not 

modified or invalidated, and these 

procedures include controls that are 

regularly audited and processing 


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119See supra Part III.A (describing policies and 

procedures regarding the CCO and conflicts of 

interest). 

120See KOR SEC SBSDR Fee Schedule, Ex. M–1. 

Additionally, KOR provides a fee schedule for KOR 

Users on its website at https://

www.korfinancial.com/pricing. 

121See Rulebook, Ex. HH, sec. 13.4; see also KOR 

SEC SBSDR Disclosure Document v1.2, Ex. GG–2, 

sec. 8.0. 

122See KOR SEC SBSDR Fee Schedule, Ex. M–1, 

sec. 1.0; see also Fee Schedule Rational and 

Differentiation, Ex. M–2, sec. 1.3. 

123See Rulebook, Ex. HH, sec. 13.4; see also KOR 

SEC SBSDR Disclosure Document v1.2, Ex. GG–2, 

sec. 8.0. 

124See id.; see also KOR SEC SBSDR Disclosure 

Document v1.2, Ex. GG–2, sec. 8.0. 

125See Rulebook, Ex. HH, sec. 13.4. 

126See id.; see also KOR SEC SBSDR Disclosure 

Document v1.2, Ex. GG–2, sec. 8.0. 

127See KOR SEC SBSDR Fee Schedule, Ex. M–1, 

sec. 1.0. 

128See id. 

129See id. 

130See KOR SEC SBSDR Fee Schedule, Ex. M–1, 

sec. 2.1. 

131See KOR SEC SBSDR Fee Schedule, Ex. M–1, 

sec. 2.1, 2.2. 

132See id. 

133See id. 

134See KOR SEC SBSDR Fee Schedule, Ex. M–1, 

sec. 2.3. 

135See id. 

136See id. 

137See KOR SEC SBSDR Fee Schedule, Ex. M–1, 

sec. 2.4. 

138See id. 

139See id. 

140See KOR SEC SBSDR Fee Schedule, Ex. M–1, 

sec. 3.0. 

141See id. 

systems designed to prevent 

unauthorized changes to SBS 

information. Additionally, KOR 

provides procedures and facilities 

reasonably designed to effectively 

resolve disputes over the accuracy of the 

transaction data and positions that are 

recorded in the SDR. 

Furthermore, the KOR Application 

contains policies and procedures 

regarding both data security and the 

privacy of SBS data. This includes 

procedures limiting access to SBS data 

to employees with either direct or 

support responsibilities related to 

systems that maintain the data and 

procedures that limit the use of such 

data in all cases to the performance of 

job responsibilities. Such policies and 

procedures also establish a standard for 

the trading practices of personnel that 

prevents the use of the data for personal 

benefit or the benefit of others. In 

addition, KOR has policies and 

procedures that, when taken together 

with policies and procedures regarding 

the duties of the CCO,119 are reasonably 

designed to protect the privacy of SBS 

transaction information, including 

information shared with affiliates and 

third parties, through adequate 

oversight to ensure compliance with the 

policies and procedures described 

above. 

D. Fees 

1. Summary of KOR’s Application 

The application includes KOR’s fee 

schedules.120 According to KOR, fees 

are assessed in a consistent, nonpreferential manner and are not 

permitted to be used as a barrier to 

entry.121 KOR offers a subscription 

model fee schedule which treats all 

submissions equally regardless of 

reporting counterparty, asset class, 

clearing status or execution.122 The 

application provides that KOR will not 

offer preferential pricing arrangements 

to any client on any basis, including 

volume discounts or reductions, unless 

such discounts or reductions apply to 

all clients uniformly and are not 

otherwise established in a manner that 

would effectively limit the application 

of such discount or reduction to a select 

number of clients.123 In addition, KOR 

represents in its rulebook that it ensures 

any dues, fees, or other charges imposed 

by, and any discounts or rebates offered 

by, its SBSDR are fair and reasonable 

and not unreasonably discriminatory.124

KOR states that such dues, fees, other 

charges, discounts, or rebates will be 

applied consistently across all similarlysituated users of such SBSDR services, 

including, but not limited to, market 

participants, market infrastructures 

(including central counterparties), 

venues from which data can be 

submitted to the SBSDR (including 

exchanges, security-based swap 

execution facilities, electronic trading 

venues, and matching and confirmation 

platforms), and third party service 

providers.125 All fees are fully disclosed 

and available on the KOR SBSDR 

website.126 The fee schedule applies 

until such time as the KOR Board 

determines otherwise and provides 

clients at least one (1) month’s notice for 

significant changes to existing pricing or 

policy.127

In the application, KOR states that, as 

a real-time messaging-based service, 

KOR assesses fees on a per message 

basis to align SBSDR services and the 

expense to offer such services.128 All 

Reporting Clients are assessed the same 

fee structure regardless of their pathway 

to KOR SBSDR to ensure a competitive 

and level playing field.129 A ‘‘Reporting 

Client’’ means the reporting 

counterparty that has in place a fully 

executed agreement and is liable for the 

fees incurred for the use of KOR 

Services.130 The Reporting Client may 

delegate billing and payments to 

another client by authorizing either a 

Related Entity or their Third-Party 

Reporter.131 The ‘‘Related Entity’’ refers 

to other clients of KOR (i.e., KOR 

Counterparty Clients) within the same 

corporate structure as the Reporting 

Client, creating a Client Group.132 KOR 

will aggregate the fee liable activity for 

Related Entities under a Client Group 

and provide a single invoice.133 A 

‘‘Third-Party Reporter’’ refers to an 

entity that has a fully executed 

agreement with KOR and is facilitating 

reporting for a KOR Counterparty 

Client.134 A Third-Party Reporter is not 

charged fees for the activity of their 

customers, who are also KOR 

Counterparty Clients, but may be 

assigned billing (receipt of invoices and 

payment responsibilities) by KOR 

Counterparty Clients.135 When a 

Counterparty Client makes a billing 

assignment to a Third-Party Reporter it 

is for all billable activity related to use 

of KOR Services of that Counterparty 

Client (including activity beyond what 

is associated to the Third-Party 

Reporter), and Counterparty Clients may 

only assign billing to a single ThirdParty Reporter.136 The application 

provides that reporting by Platforms 

which are Security-Based Swap 

Execution Facilities or National 

Securities Exchanges are treated as 

messages under a Third-Party Reporter 

whereby the Reporting Counterparty is 

assessed KOR reporting fees and the 

Platform, by default, is not.137 A 

Platform may elect to assume direct 

billing responsibility for any Reporting 

Counterparty that is a KOR 

Counterparty Client.138 If the Reporting 

Counterparty on a Platform reported 

transaction is not a KOR Counterparty 

Client, the Platform reporter will be 

billed for the message activity which 

will be aggregated with all other 

Platform billable message activity.139

KOR SBSDR offers simplified 

subscription plans where each tier plan 

limits the maximum number of 

messages a Reporting Client may report 

per month.140 To calculate the calendar 

monthly fee, KOR totals all eligible 

messages submitted in the prior month 

for each Counterparty Client or Client 

Group. KOR provides a 10% monthly 

overage allowance across all tiers for 

any given month per Counterparty 

Client or Client Group.141 KOR’s 

subscription plan is organized into ten 

(10) tiers. Tier 1 allows for 100 monthly 

messages produced with a monthly fee 

of $100; Tier 2 allows for 1,000 monthly 

messages produced with a monthly fee 

of $500; Tier 3 allows for 10,000 

monthly messages produced with a 

monthly fee of $2,000; Tier 4 allows for 


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142See id. 

143See KOR SEC SBSDR Fee Schedule, Ex. M–1, 

sec. 3.2. 

144See id. 

145See id. 

146See id. 

147See id. 

148See KOR SEC SBSDR Fee Schedule, Ex. M–1, 

sec. 5.0. 

149See id. 

150See id. 

151See id. 

152See id. 

153See id. 

154See id. 

155 15 U.S.C. 78m(n)(7)(A). 

156 17 CFR 240.13n–4(c)(1)(i). 

157See id. 

158See SDR Adopting Release, supra note 8, at 

14479. In making this statement, however, the 

Commission also stated that charging different users 

different prices for the same or similar services 

cannot be unreasonably discriminatory. 

159See supra note 123. 

160See Rulebook, Ex. HH, sec. 9.4; see also KOR 

SEC SBSDR Disclosure Document v1.2, Ex. GG–2, 

sec. 7.4.4. 

161 17 CFR 240.13n–5(b)(4). 

162 17 CFR 240.13n–7. 

163Rule 13n–5(b)(7) states that, if an SDR ceases 

doing business or ceases to be registered pursuant 

to section 13(n) of the Exchange Act, the SDR must 

continue to preserve, maintain, and make accessible 

the transaction data and historical positions 

required to be collected, maintained, and preserved 

by this section in the manner required by the 

Exchange Act and the rules and regulations 

thereunder and for the remainder of the period 

required by this section. 17 CFR 240.13n–5(b)(7). 

164 17 CFR 240.13n–8. 

165See KOR Rulebook, Ex. HH, sec. 9.4. 

166See id. 

100,000 monthly messages produced 

with a monthly fee of $6,000; Tier 5 

allows for 1,000,000 monthly messages 

produced with a monthly fee of $15,000; 

Tier 6 allows for 4,000,000 monthly 

messages produced with a monthly fee 

of $36,000; Tier 7 allows for 9,000,000 

monthly messages produced with a 

monthly fee of $60,000; Tier 8 allows for 

14,000,000 monthly messages produced 

with a monthly fee of $95,000; Tier 9 

allows for 19,000,000 monthly messages 

produced with a monthly fee of 

$150,000; and Tier 10 allows for 

24,000,000 monthly messages produced 

with a monthly fee of $220,000.142

KOR SBSDR is a 100% cloud service 

leveraging the performance and scale 

available through the cloud 

infrastructure.143 KOR incurs costs 

through the accessing of its clients’ data 

hosted and used to generate trade 

reports requested by clients.144 The 

application states that the KOR SBSDR 

Fee Schedule is designed for simplicity 

and flexibility, modeling an expected 

mix of scheduled access to standard 

reports in addition to reasonable use of 

ad-hoc reporting.145 KOR will monitor 

the generation of reports across each 

client and KOR will provide advice 

when it observes use that exceeds 

standard fair allowances.146 KOR states 

that should a client need continued 

reports at a sustained activity level 

higher than expected, a move to a higher 

fee tier may be deemed appropriate.147

KOR will generate invoices by the fifth 

(5th) day of every calendar month for 

the prior month’s activity.148 The billing 

currency is USD ($) and invoices must 

be paid in USD.149 Invoices are payable 

within 45 days upon receipt.150

Accounts not paid within terms are 

subject to a 1.5% monthly finance 

charge.151 KOR SBSDR will accept and 

process billing adjustments up to 45 

days after the invoice date.152

Adjustment requests received after the 

45-day period will not be accepted by 

KOR SBSDR.153 Approved adjustments 

will be applied as credits and appear on 

the next billing cycle as a separate line 

item.154

2. Discussion 

Section 13(n)(7)(A) of the Exchange 

Act prohibits an SDR (unless necessary 

or appropriate to achieve the purposes 

of the Exchange Act) from: (i) adopting 

any rule or taking any action that results 

in any unreasonable restraint of trade; or 

(ii) imposing any material anticompetitive burden on the trading, 

clearing, or reporting of transactions.155

Rule 13n–4(c)(1)(i) under the Exchange 

Act also requires an SDR to ensure that 

any dues, fees, or other charges that it 

imposes, and any discounts or rebates 

that it offers, are fair and reasonable and 

not unreasonably discriminatory.156 It 

also requires that such dues, fees, other 

charges, discounts, or rebates be applied 

consistently across all similarly situated 

users of the SDR’s services.157 In 

discussing the fee provisions of the SDR 

Rules, the Commission stated that it 

would take a flexible approach in 

evaluating the fairness and 

reasonableness of an SDR’s fees and 

charges on a case-by-case basis, 

recognizing that there may be instances 

in which an SDR could charge different 

users different prices for the same or 

similar services.158

The Commission received no 

comments on the KOR Notice. As 

described above, the KOR Application 

describes fees offered on a subscription 

model fee schedule treating all 

submissions equally with no 

preferential pricing arrangements to any 

client on any basis for usage of SDR 

services.159 The subscription 

component of KOR’s fees is assessed on 

a per message basis to align SBSDR 

services and the expense to offer such 

services. The fee structure is consistent 

with the requirement of an SDR to 

ensure that any dues, fees, or other 

charges imposed are fair and reasonable 

and not unreasonably discriminatory. 

E. Recordkeeping 

1. Summary of KOR’s Application 

The KOR Rulebook provides that KOR 

will maintain transaction data and 

related identifying information for not 

less than five years after the applicable 

SBS expires and historical positions for 

not less than five years: (a) in a place 

and format that is readily accessible and 

usable to the Commission and other 

persons with authority to access or view 

such information, and (b) in an 

electronic format that is non-rewriteable 

and non-erasable.160

2. Discussion 

Rule 13n–5(b)(4) of the Exchange Act 

requires an SDR to maintain transaction 

data and related identifying information 

for not less than five years after the SBS 

expires and historical positions for not 

less than five years in a place and 

format that is readily accessible and 

usable to the Commission and other 

persons with authority to access or view 

such information and in an electronic 

format that is non-rewriteable and nonerasable.161 Rule 13n–7 requires an SDR 

to make and keep current books and 

records relating to its business for at 

least five years, and for the first two 

years, keep such records in a place that 

is immediately available to 

representatives of the Commission for 

inspection and examination.162 In 

addition, Rule 13n–5(b)(8) requires an 

SDR to make and keep current a plan to 

ensure that the transaction data and 

positions that are recorded in the SDR 

continue to be maintained in 

accordance with Rule 13n–5(b)(7),163

including procedures for transferring 

the transaction data and positions to the 

Commission or its designee.164

The Commission received no 

comments on the KOR Notice. As 

described above, the KOR Application 

provides for the recordkeeping of SBS 

transaction data for not less than five 

years following the termination of the 

transaction,165 and will be readily 

accessible throughout the life of a 

security-based swap in an electronic 

format that is non-rewriteable and nonerasable.166 In addition, KOR provides 

for the transferring of transaction data 

and positions to the Commission via 

reports designed to provide visibility 

into positions and the status of 

submitted trades and also provides for 

direct electronic access to data reported 

to KOR in satisfaction of the 

Commission’s regulatory requirements 

both for the Commission and, where 


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167See KOR SEC SBSDR Disclosure Document 

v1.2, Ex. GG–2. 

168See id. 

169 17 CFR 240.13n–10. 

170See id. 

171See supra Part III.B (describing policies and 

procedures with respect to access and information 

security). 

172See supra Part III.C (describing policies and 

procedures with respect to acceptance and use of 

SBS data). 

173See supra Part III.D (describing policies and 

procedures with respect to fees). 

174See supra Part III.A (describing policies and 

procedures with respect to governance 

arrangements, the duties of the CCO, and conflicts 

of interest). 

175See KOR SEC SBSDR Disclosure Document 

v1.2, Ex. GG–2. 

176See, e.g., https://www.korfinancial.com/ 

documents/KOR-SDR-Disclosure-Document.pdf 

(publishing a disclosure document pursuant to 

CFTC requirements). 

177See supra note 25 and accompanying text. 

178However, the KOR application includes 

provisions explaining how KOR would require 

users to identify SBS, as required by Rule 901(c)(1) 

of Regulation SBSR. See Exhibit HH2, sec. 4.4 

(regarding Unique Product Identifiers). The KOR 

Application also includes a provision explaining 

how KOR would comply with a condition to the noaction statement included in the ANE Adopting 

Release. See KOR Rulebook, Ex. HH, sec. 10.6.1 

(providing, in the case of an SBS based on a single 

credit instrument or a narrow-based index of credit 

instruments, for dissemination of a capped notional 

size of $5 million if the true notional size of the 

transaction is $5 million or greater). 

179ANE Adopting Release, supra note 13, at 6348. 180 Id. 181Because KOR has elected to rely on the noaction statement, see supra note 29, the 

Commission has not evaluated the KOR Application 

against any provisions of Regulation SBSR 

specifically noted as not providing a basis for a 

Commission enforcement action during the 

pendency of the statement. 

182See Report on Security-Based Swaps Pursuant 

to Section 13(m)(2) of the Securities Exchange Act 

of 1934, at p. 13 (June 20, 2024), https://

www.sec.gov/files/report-security-based-swaps062024.pdf (identifying non-exhaustive sample of 

potential security-based swap data quality issues 

identified in security-based swap transactions 

reported to SDRs registered with the Commission). 

such access is permitted by applicable 

law and any relevant Memorandum of 

Understanding or other arrangement, 

the Commission’s designee. 

F. Disclosure 

1. Summary of KOR’s Application 

KOR publishes a disclosure document 

(‘‘KOR Disclosure Document’’) to 

provide a summary of information 

regarding its service offerings and the 

SBS data it maintains.167 Specifically, 

the disclosure document sets forth a 

description of the following: (i) criteria 

for providing access to KOR SBSDR; (ii) 

criteria for market participants seeking 

to connect to the SBSDR; (iii) policies 

and procedures regarding the SBSDR’s 

safeguarding of SBSDR data and 

operational reliability to protect the 

confidentiality and security of SBSDR 

data; (iv) policies and procedures to 

protect the privacy of SBSDR data; (v) 

policies and procedures regarding the 

SBSDR’s non-commercial and/or 

commercial use of SBSDR data; (vi) 

dispute resolution procedures; (vii) 

description of SBSDR services; (viii) the 

SBSDR fee schedule; and (ix) the 

SBSDR’s governance arrangements.168

2. Discussion 

Rule 13n–10 under the Exchange Act 

requires that, before accepting any SBS 

data from a market participant or upon 

a market participant’s request, an SDR 

shall furnish to the market participant a 

disclosure document that contains 

certain written information, which must 

reasonably enable the market 

participant to identify and evaluate 

accurately the risks and costs associated 

with using the SDR’s services.169 This 

written information must contain the 

following: (i) the SDR’s criteria for 

providing others with access to the 

services offered and data it maintains; 

(ii) its criteria for those seeking to 

connect to or link with the SDR; (iii) a 

description of its policies and 

procedures regarding its safeguarding of 

data and operational reliability, as 

described in Rule 13n–6; (iv) a 

description of its policies and 

procedures reasonably designed to 

protect the privacy of SBS transaction 

information that it receives, as described 

in Rule 13n–9(b)(1); (v) a description of 

its policies and procedures regarding its 

noncommercial and commercial use of 

SBS transaction information that it 

receives, as described in Rule 13n– 

5(b)(6); (vi) a description of its dispute 

resolution procedures, as described in 

Rule 13n–5(b)(6); (vii) a description of 

all the SDR’s services, including any 

ancillary services; and (viii) the SDR’s 

updated schedule of any dues; 

unbundled prices, rates or other fees for 

all of its services, including ancillary 

services; any discounts or rebates 

offered; and the criteria to benefit from 

such discounts or rebates; and (ix) a 

description of its governance 

arrangements.170

The Commission received no 

comments on the KOR Notice. As 

described throughout this order, the 

KOR Application includes extensive 

discussion of KOR’s policies and 

procedures with respect to access,171 the 

use of SBS transaction information,172

service offerings, including ancillary 

services,173 and governance 

arrangements.174 The KOR Disclosure 

Document presents a reasonably 

comprehensive view of the applicant’s 

overall service offering, from which a 

potential user could identify and 

evaluate accurately the risks and costs 

associated with using the SDR’s 

services.175 In addition, regarding the 

requirement to furnish the document to 

market participants, the Commission 

understands that KOR publishes similar 

disclosure documents on its website,176

and anticipates the same for the KOR 

Disclosure Document relevant to this 

application. 

G. Regulatory Reporting and Public 

Dissemination 

As a registered SDR, KOR would carry 

out an important role in the regulatory 

reporting and public dissemination of 

SBS transactions. As stated above, KOR 

has stated that it intends to rely on the 

no-action statement included in the 

ANE Adopting Release for the period set 

forth in the ANE Adopting Release with 

respect to any SBS asset class or classes 

for which it intends to accept 

transaction reports.177 Therefore, KOR 

does not need to include materials in its 

application explaining how it would 

comply with the provisions of the SBS 

Reporting Rules described in the noaction statement.178 Instead, KOR may 

rely on its discussion about how it 

complies with comparable CFTC 

requirements pertaining to regulatory 

reporting and public dissemination of 

swap transactions. 

In the no-action statement in the ANE 

Adopting Release, the Commission 

stated that an applicant ‘‘will not need 

to include materials in its application 

explaining how it would comply with 

the provisions [specifically noted as not 

providing a basis for a Commission 

enforcement action during the pendency 

of the statement].’’ 179 The applicant 

‘‘could instead rely on its discussion 

about how it complies with comparable 

CFTC requirements.’’ 180 In its 

application, KOR provided exhibits that 

adapted its policies and procedures for 

regulatory reporting and public 

dissemination of swaps for use in the 

SBS market. With respect to its role in 

the regulatory reporting and public 

dissemination of SBS transactions, KOR 

has satisfied the approach described by 

the Commission in the no-action 

statement regarding the information and 

representations sufficient to support its 

approval for registration as an SDR and 

SIP,181 and that registering KOR as an 

SDR may improve the quality of SBS 

data that is publicly disseminated by 

promoting competition among SDRs as 

to the collection and public 

dissemination of SBS data.182

IV. Evaluation of KOR’s Application 

and Commission Findings 

Consistent with the standard for 

registration previously described in Part 


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183See supra notes 16–18 and accompanying text. 

184See supra note 19 and accompanying text. 

185 15 U.S.C. 78m(n). 

186 15 U.S.C. 78k–1(b). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Rule 1.5(n) (‘‘Member’’). The term 

‘‘Member’’ shall mean any registered broker or 

dealer that has been admitted to membership in the 

Exchange. A Member will have the status of a 

‘‘member’’ of the Exchange as that term is defined 

in Section 3(a)(3) of the Act. Membership may be 

granted to a sole proprietor, partnership, 

corporation, limited liability company or other 

organization which is a registered broker or dealer 

pursuant to Section 15 of the Act, and which has 

been approved by the Exchange. 

4The Exchange initially filed the proposed 

change on October 10, 2024 (SR–BZX–2024–099). 

On October 22, 2024, the Exchange withdrew that 

filing and submitted this filing. 

5For example, subscribers to the intraday product 

will receive the first calculation of intraday data by 

approximately 9:42 a.m. ET, which represents data 

captured from 9:30 a.m. to 9:40 a.m. Subscribers 

will receive the next update at 9:52 a.m., 

representing the data previously provided together 

with data captured from 9:40 a.m. through 9:50 

a.m., and so forth. Each update will represent the 

aggregate data captured from the current 

‘‘snapshot’’ and all previous ‘‘snapshots.’’ 

II.B,183 the Commission has considered 

whether KOR is so organized, and has 

the capacity, to be able to assure the 

prompt, accurate, and reliable 

performance of its functions as an SDR, 

comply with any applicable provisions 

of the securities laws and the rules and 

regulations thereunder, and carry out its 

functions in a manner consistent with 

the purposes of section 13(n) of the 

Exchange Act and the rules and 

regulations thereunder. The 

Commission finds that KOR meets these 

criteria for registration as an SDR for the 

reasons described throughout this order. 

To evaluate KOR’s application to 

register as a SIP, and consistent with the 

standard for registration previously 

described in Part II.B,184 the 

Commission has considered whether 

KOR is so organized, and has the 

capacity, to be able to assure the 

prompt, accurate, and reliable 

performance of its functions as a SIP, 

comply with the provisions of the 

Exchange Act and the rules and 

regulations thereunder, carry out its 

functions in a manner consistent with 

the purposes of the Exchange Act, and, 

insofar as it is acting as an exclusive 

processor, operate fairly and efficiently. 

The Commission finds that KOR meets 

these criteria for registration as a SIP for 

the reasons described throughout this 

order. 

V. Conclusion 

For the reasons discussed above, the 

Commission finds that KOR meets the 

applicable requirements for registration 

as an SDR, including those standards set 

forth in section 13(n) of the Exchange 

Act and Commission rules and 

regulations thereunder,185 and the 

applicable requirements for registration 

as a SIP under section 11A(b) of the 

Exchange Act.186

It is hereby ordered that the 

application for registration as a securitybased swap data repository and a 

securities information processor filed by 

KOR Reporting, Inc. (File No. SBSDR– 

2023–01) pursuant to sections 13(n) and 

11A(b) of the Exchange Act be, and 

hereby is, approved. 

By the Commission. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–25961 Filed 11–7–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101510; File No. SR– 

CboeBZX–2024–105] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change to Amend its 

Fee Schedule 

November 4, 2024. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on October 

22, 2024, Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX Options’’) 

proposes to amend its Fee Schedule. 

The text of the proposed rule change is 

provided in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

equities/regulation/rule_filings/BZX/), 

at the Exchange’s Office of the 

Secretary, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to update its 

Fee Schedule to provide a temporary 

20% discount on fees assessed to 

Exchange Members 3 and non-Members 

that purchase $20,000 or more of ad hoc 

purchases of historical Open-Close Data, 

effective October 10, 2024 through 

December 31, 2024.4

By way of background, the Exchange 

currently offers End-of-Day (‘‘EOD’’) and 

Intraday Open-Close Data (collectively, 

‘‘Open-Close Data’’). EOD Open-Close 

Data is an end-of-day volume summary 

of trading activity on the Exchange at 

the option level by origin (customer, 

professional customer, broker-dealer, 

and market maker), side of the market 

(buy or sell), price, and transaction type 

(opening or closing). The customer and 

professional customer volume is further 

broken down into trade size buckets 

(less than 100 contracts, 100–199 

contracts, greater than 199 contracts). 

The EOD Open-Close Data is proprietary 

Exchange trade data and does not 

include trade data from any other 

exchange. It is also a historical data 

product and not a real-time data feed. 

The Exchange also offers Intraday OpenClose Data, which provides similar 

information to that of EOD Open-Close 

Data but is produced and updated every 

10 minutes during the trading day. Data 

is captured in ‘‘snapshots’’ taken every 

10 minutes throughout the trading day 

and is available to subscribers within 

five minutes of the conclusion of each 

10-minute period.5 The Intraday OpenClose Data provides a volume summary 

of trading activity on the Exchange at 

the option level by origin (customer, 


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