© 2021 KOR Reporting, Inc.

KOR SDR Rulebook

2021-04-01
KOR SDR RULEBOOK 1

Table of Contents

Table of Contents ..................................................................................................................1

History ..................................................................................................................................8

Published Date ......................................................................................................................8

Preamble...............................................................................................................................9

1. Defined terms...............................................................................................................10

1.1 KOR Specific terms .............................................................................................................. 10

1.2 CFTC Terms.......................................................................................................................... 11

2. Corporate structure .........................................................................................................23

2.1 Mission Statement of KOR SDR........................................................................................... 23

2.2 Board of Directors............................................................................................................... 23

2.2.1 Mission Statement of the Board of Directors .............................................................. 23

2.3 Board membership and structure ....................................................................................... 24

2.3.1 Size of Board ................................................................................................................. 24

2.3.2 Board Composition; Mix of Independent and Employee Directors............................. 24

2.3.3 Board Membership Criteria.......................................................................................... 24

2.3.4 Determination of “Independent” Directors. ................................................................ 25

2.3.5 Ethics and Conflicts of Interest..................................................................................... 25

3. Client access to data ........................................................................................................26

3.1 Procedures for gaining access to KOR SDR ......................................................................... 26

3.2 Client Rules & Applicable Law............................................................................................. 27

3.3 Delegated Reporter Client access....................................................................................... 27

3.4 Authorized Access Client access.......................................................................................... 27

3.5 Users.................................................................................................................................... 27

3.5.1 Administrative Users .................................................................................................... 27
KOR SDR RULEBOOK 2

3.5.2 User Access to data ...................................................................................................... 28

3.5.2.1 Trades, related data and reports............................................................................... 28

3.5.3 Anonymous execution.................................................................................................. 29

3.5.4 Review of Market Participant access to KOR SDR........................................................ 29

4. Unique Identifiers............................................................................................................29

4.1 Unique transaction identifiers (UTI).................................................................................... 29

4.1.1 UTI Creation format...................................................................................................... 30

4.1.2 UTI Transmission .......................................................................................................... 30

4.1.3 UTI Creation party ........................................................................................................ 31

4.1.4 Swaps executed on or pursuant to the rules of a SEF or DCM..................................... 31

4.1.5 Off-Facility Swaps with a financial entity Reporting Counterparty.............................. 31

4.1.6 Off-Facility Swaps with a non-SD/MSP/DCO Reporting Counterparty that is not a 

financial entity ....................................................................................................................... 31

4.1.7 Off-Facility Swaps with a DCO Reporting Counterparty............................................... 32

4.1.8 Third-party service reporter......................................................................................... 32

4.1.9 Cross-jurisdictional swaps ............................................................................................ 32

4.2 Legal Entity Identifiers (LEI)................................................................................................. 33

4.2.1 Use of the legal entity identifier................................................................................... 33

4.2.2 Privacy law identifiers (PLI)........................................................................................... 34

4.3 Unique Product Identifiers (UPI)......................................................................................... 35

4.3.1 Use of the unique product identifier and product classification system by registered 

entities and swap counterparties.......................................................................................... 36

4.3.2 KOR SDR’s temporary unique product identifier system............................................. 36

5. Client duties and obligations regarding CFTC Rule Part 45 data .........................................37

5.1 Swap Data reporting: Creation data ................................................................................... 37

5.1.1 Swaps executed on or pursuant to the rules of a SEF or DCM..................................... 37

5.1.2 Off-Facility Swaps ......................................................................................................... 37
KOR SDR RULEBOOK 3

5.1.3 Allocations .................................................................................................................... 38

5.1.4 Initial swap between Reporting Counterparty and agent............................................ 38

5.1.5 Post-allocation swaps................................................................................................... 38

5.1.6 Duties of the agent....................................................................................................... 38

5.1.7 Duties of the Reporting Counterparty.......................................................................... 38

5.1.8 Multi-asset swaps......................................................................................................... 39

5.1.9 Mixed swaps................................................................................................................. 39

5.2 Swap Data reporting: Continuation data ............................................................................ 39

5.2.1 Continuation data reporting for original swaps........................................................... 40

5.2.2 Life-cycle event data reporting..................................................................................... 41

5.2.3 Reporting Counterparty is a SD, MSP, or DCO ............................................................. 41

5.2.4 Reporting Counterparty is a non-SD/MSP/DCO........................................................... 41

5.2.5 Valuation, margin, and collateral data reporting......................................................... 41

5.3 The determination of which counterparty is the Reporting Counterparty for each swap. 42

5.4 Third-party facilitation of data reporting ............................................................................ 44

5.5 Reporting to a single Swap Data Repository....................................................................... 44

5.5.1 Swaps executed on or pursuant to the rules of a SEF or DCM..................................... 44

5.5.2 Off-Facility Swaps that are not clearing swaps ............................................................ 44

5.5.3 Clearing swaps.............................................................................................................. 45

5.6 Change of Swap Data Repository ........................................................................................ 45

5.6.1 SDR Porting: Notifications ............................................................................................ 45

5.6.2 KOR SDR Porting: Procedure ........................................................................................ 46

5.6.3 Changing Swap Data Repository to KOR SDR ............................................................... 46

5.6.4 Changing Swap Data Repository out of KOR SDR......................................................... 47

6. Client data reporting standards regarding CFTC Rule Part 45.............................................48

6.1 Part 45: Data reported to Swap Data Repositories............................................................. 48
KOR SDR RULEBOOK 4

6.2 Part 45: Data Validation Acceptance Message ................................................................... 48

7. Part 45: Correcting errors in Swap Data and verification of Swap Data accuracy................49

7.1 Part 45: Correction of errors............................................................................................... 49

7.1.1 Part 45: Timing requirement for correcting errors ...................................................... 49

7.1.2 Part 45: Notification of failure to timely correct.......................................................... 50

7.1.3 Part 45: Form and manner for error correction........................................................... 50

7.1.4 Part 45: Non-Reporting Counterparties....................................................................... 50

7.1.5 Part 45: Exception......................................................................................................... 50

7.2 Part 45: Verification that Swap Data is complete and accurate ......................................... 51

7.2.1 Part 45: Method of verification .................................................................................... 51

7.2.2 Part 45: Verification policies and procedures .............................................................. 52

7.2.3 Part 45: Correcting errors............................................................................................. 52

7.2.4 Part 45: Frequency........................................................................................................ 52

7.2.5 Part 45: Delegated Reporters and Authorized Access Clients...................................... 53

7.2.6 Part 45: Verification log ................................................................................................ 53

7.2.7 Part 45: Error defined ................................................................................................... 53

7.2.8 Part 45: Presumption.................................................................................................... 54

8. KOR SDR duties and obligations regarding CFTC Rule Part 45 data ....................................54

8.1 Accept SDR data .................................................................................................................. 54

8.2 Validate SDR D..................................................................................................................... 55

8.3 Prevent invalidation or modification of data ...................................................................... 55

8.4 Error corrections ................................................................................................................. 55

8.5 KOR SDR Recordkeeping requirements .............................................................................. 56

8.5.1 Maintenance of records ............................................................................................... 57

8.5.2 Records of data errors and omissions.......................................................................... 57

8.6 Positions .............................................................................................................................. 58
KOR SDR RULEBOOK 5

8.7 Monitoring, screening, and analyzing Swap Data............................................................... 58

8.8 Reporting Clearing Exemptions/Exceptions........................................................................ 58

8.9 Monitoring, screening, and analyzing end user clearing exemption claims....................... 59

9. Client duties and obligations regarding CFTC Rule Part 43 data .........................................59

9.1 Part 43: Responsibilities to report Swap Transaction and Pricing Data in real-time.......... 59

9.1.1 Part 43: Swaps executed on or pursuant to the rules of a SEF or DCM....................... 59

9.1.2 Part 43: Off-Facility Swaps............................................................................................ 60

9.1.3 Part 43: Post-priced swaps........................................................................................... 60

9.1.4 Part 43: Post-priced swaps reporting delays................................................................ 61

9.1.5 Part 43: Other economic terms.................................................................................... 61

9.1.6 Part 43: Clearing swaps ................................................................................................ 61

9.1.7 Part 43: Prime Broker Swaps........................................................................................ 61

9.1.8 Part 43: Third-party facilitation of data reporting........................................................ 62

9.2 Part 43: Public Dissemination of Swap Transaction and Pricing Data by Swap Data 

repositories in real-time............................................................................................................ 62

9.2.1 Part 43: Prohibitions on disclosure of data .................................................................. 62

10. Client data reporting standards regarding CFTC Rule Part 43...........................................63

10.1 Part 43: Data reported to KOR SDR................................................................................... 63

10.2 Part 43: Correction of errors............................................................................................. 63

10.2.1 Part 43: Swap execution facilities, DCMs, and Reporting Counterparties................. 63

10.2.2 Part 43: Timing requirement for correcting errors .................................................... 63

10.2.3 Part 43: Notification of failure to timely correct........................................................ 64

10.2.4 Part 43: Form and manner for error correction......................................................... 64

10.2.5 Part 43: Non-Reporting Counterparties..................................................................... 64

10.2.6 Part 43: Exception....................................................................................................... 65

10.2.7 Part 43: Error defined................................................................................................. 65

10.2.7.1 Part 43: Errors.......................................................................................................... 65
KOR SDR RULEBOOK 6

10.2.7.2 Part 43: Presumption............................................................................................... 65

10.3 Part 43: Data Validation Acceptance Message ................................................................. 66

10.4 Part 43: Swap Transaction and Pricing Data to be Publicly Disseminated in real-time.... 66

10.4.1 Reporting of notional or principal amounts to KOR SDR ........................................... 66

10.4.1.1 Part 43: Off-Facility Swaps....................................................................................... 66

10.4.2 Part 43: Swaps executed on or pursuant to the rules of a SEF or DCM..................... 66

10.5 Part 43: Block Trades and large notional Off-Facility Swaps............................................. 67

10.5.1 Part 43: Required notification .................................................................................... 67

10.5.2 Part 43: Block Trade election...................................................................................... 67

10.5.3 Large Notional Off-Facility Swap election .................................................................. 67

10.5.4 Part 43: Special Provisions relating to appropriate minimum block sizes and Cap Sizes

68

10.5.5 Swaps with optionality ............................................................................................... 68

10.5.6 Swaps with Composite Reference Prices ................................................................... 68

10.5.7 Notional amounts for physical commodity swaps..................................................... 68

10.5.8 Currency conversion................................................................................................... 68

10.5.9 Successor currencies .................................................................................................. 69

10.5.10 Aggregation .............................................................................................................. 69

10.6 Part 43: Information required by KOR SDR for block and large notional swap elections 70

10.7 Part 43: Information required by KOR SDR for commodities masking ............................. 71

11. KOR SDR duties and obligations regarding CFTC Rule Part 43 data ..................................71

11.1 Real-time public reporting ................................................................................................ 71

11.1.1 Duty to notify the Commission of untimely data ....................................................... 71

11.1.2 Availability of Swap Transaction and Pricing Data to the public ................................ 72

11.1.3 Swap Transaction and Pricing Data to be Publicly Disseminated in real-time........... 73

11.1.4 Anonymity of the parties to a Publicly Reportable Swap Transaction....................... 73

11.1.5 Masking of Delivery Location – Other Commodity Asset Class.................................. 73
KOR SDR RULEBOOK 7

11.1.6 Liquid markets ............................................................................................................ 73

11.1.7 Illiquid markets........................................................................................................... 74

11.1.8 Notional rounding and capping .................................................................................. 74

11.1.9 Time delays for Public Dissemination of Swap Transaction and Pricing Data ........... 74

12. Dispute Resolution.........................................................................................................75

13. Chief Compliance Officer................................................................................................75

13.1 CCO Designation................................................................................................................ 75

13.2 CCO Supervision ................................................................................................................ 75

13.3 CCO Qualifications............................................................................................................. 76

14. KOR SDR system.............................................................................................................76

14.1 Hours of Operation............................................................................................................ 76

14.2 Emergency policies and procedures ................................................................................. 77

14.3 Systems Safeguards........................................................................................................... 78

14.3.1 Systems testing........................................................................................................... 78

14.3.2 Systems testing planning............................................................................................ 78

14.4 Fees ................................................................................................................................... 78

15. Disciplinary procedures..................................................................................................79

15.1 Violation of KOR SDR rules................................................................................................ 79

15.2 Client Denial, Revocation, or Suspension.......................................................................... 79

15.3 Restoring Client Access ..................................................................................................... 79
KOR SDR RULEBOOK 8

History

Date Description of change Sections Updated

2021-04-01 Original Document All

Published Date

2021-10-29
KOR SDR RULEBOOK 9

Preamble

KOR Reporting Inc. (“KOR” or “KOR SDR”) and its affiliate, KOR Financial Inc., are wholly 

owned subsidiaries of KOR US Holdings, Inc.. KOR Reporting Inc. operates a U.S. Swap Data

Repository (“SDR”). KOR SDR is governed by the Commodity Futures Trading Commission 

(“CFTC” or “Commission”). 

KOR SDR is registered for and accepts data in the following Asset Classes: interest rates, credit 

default swaps, equities, foreign exchange and other commodities. To maintain its SDR status, KOR 

shall continue to demonstrate substantial compliance with all applicable provisions of its orders 

and applicable rules and regulations under Parts 49, 45, 43, and 40 of CFTC Rules.

Under CFTC Rule 49.13, KOR SDR is 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. Under CFTC Rule 49.17 and 49.18, KOR SDR is 

required to provide Appropriate Domestic Regulators and Appropriate Foreign Regulators that 

have executed a confidentiality arrangement with the Commission, access to swap data maintained 

by KOR SDR within the scope of such Regulator's jurisdiction. There will be no notification to 

Clients on such occurrences. 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.

This rulebook applies to Clients of the KOR SDR and to the data for which they have choosen to 

report to KOR SDR, it in no way enforces that a Market Participant must report all or any portion

of their SDR Data to KOR SDR.

Unless necessary or appropriate to achieve the purposes of the Act, KOR SDR shall avoid adopting 

any rule or taking any action that results in any unreasonable restraint of trade; or imposing any 

material anticompetitive burden on trading, clearing or reporting swaps.

KOR SDR’s Chief Compliance Office can be contacted using: compliance@korfinancial.com
KOR SDR RULEBOOK 10

1. Defined terms

1.1 KOR Specific terms

Term Definition Acronym

Administrative 

User

All Clients must indicate at least two Administrative Users. 

These Users manage all other User's access to the KOR system. 

Authorized 

Access Client

A Client that has been authorized to access other Client’s data, 

but not submit data on its behalf.

Client All-encompassing term for a company who has executed all 

applicable KOR Agreements and Addendums. Includes 

Reporting, 3

rd Party Reporter, Verification, Integration, 

Authorized Access and Regulator Client types.

Delegated 

Reporter

Related Entities and Third-Party Reporters are together referred 

to as Delegated Reporters.

Integration 

Client

A Client registered to receive systems integration support for 

the purpose of supplying to their customers who will report and 

be charged fees by KOR SDR. Integration Clients access to 

KOR SDR is limited to the testing environment

KOR SDR 

Technical 

Specification

Detailed information on the connection and integration to KOR 

SDR for submission, access and reports

KOR SDR 

User Guide

Functional and operational information for the use of the SDR

On Facility Any swap executed on an execution facility (e.g., SEF, DCM, 

FBOT)

Regulator 

Client

Primary Regulator, Delegated Regulator, Appropriate 

Domestic Regulator or Foreign Regulator that has approved 

access to KOR SDR. 

Related Entity Related Entity is a Client that is part of the same corporate 

family, where the shared parent has controlling interest, or is in 
KOR SDR RULEBOOK 11

a fiduciary relationship with the Reporting (Counterparty) 

Client.

SDR User 

Interface 

Web interface to access data, entity information and manage 

Users/access.

SDR UI

SDR Website Public website where Clients and non-Clients can access any 

SDR public information as well as Agreements to become a 

Client. 

SDR 

Regulations

Rules and regulations under CFTC Rule(s) 17§49, §45, §43, 

and §40.

Third-party 

Reporter 

Client

Company that has executed the KOR Universal Services 

Agreement and applicable Addendums but are not a 

counterparty or party to a swap. Reporting Counterparty Clients 

must permission them to submit data on their behalf. 

3PR

User Person or system with SDR access at a Client or Regulator

Verification 

Client

A company who has executed the applicable KOR Agreement, 

but is not accessed to submit data, only view data or permission 

other Clients to submit or view data on their behalf. 

1.2 CFTC Terms

Each “CFTC Term” is incorporating by reference such term as defined under CFTC rules.

Term Definition Acrony

m

Citati

on

Affiliate means a person that directly, or indirectly, Controls, is 

controlled by, or is under common control with, the 

Swap Data Repository.

49.2(a

)

Appropriate 

Domestic 

Regulator

means:

(i) The Securities and Exchange Commission;

(ii) Each prudential Regulator identified in Section 

1a(39) of the Act with respect to requests related to any 

of such regulator's statutory authorities, without 

limitation to the activities listed for each Regulator in 

Section 1a(39);

(iii) The Financial Stability Oversight Council;

49.17(

b)(1)
KOR SDR RULEBOOK 12

(iv) The Department of Justice;

(v) Any Federal Reserve Bank;

(vi) The Office of Financial Research; and

(vii) Any other person the Commission determines to be 

appropriate pursuant to the process set forth in paragraph 

(h) of this section.

Appropriate 

Foreign 

Regulator

means those Foreign Regulators the Commission 

determines to be appropriate pursuant to the process set 

forth in paragraph (h) of this section.

49.17(

b)(2)

Appropriate 

Minimum 

Block Size 

means the minimum notional or principal amount for a 

category of swaps that qualifies a swap within such 

category as a block trade or large notional Off-Facility 

Swap.

43.2(a

)

As Soon As 

Technologicall

y Practicable 

means as soon as possible, taking into consideration the 

prevalence, implementation, and use of technology by 

comparable market participants.

ASATP 49.2(a

)

43.2(a

)

Asset class means a broad category of commodities including, 

without limitation, any “excluded commodity” as 

defined in section 1a(19) of the Act, with common 

characteristics underlying a swap. The asset classes 

include interest rate, foreign exchange, credit, equity, 

Other Commodity, and such other asset classes as may 

be determined by the Commission.

49.2(a

) 

43.2(a

)

Block Trade means a Publicly Reportable Swap Transaction that:

(1) Involves a swap that is listed on a Swap Execution 

Facility or Designated Contract Market;

(2) Is executed on a Swap Execution Facility's trading 

system or platform that is not an order book as defined 

in § 37.3(a)(3) of this chapter, or occurs away from the 

Swap Execution Facility's or Designated Contract 

Market's trading system or platform and is executed 

pursuant to the Swap Execution Facility's or Designated 

Contract Market's rules and procedures;

43.2(a

)
KOR SDR RULEBOOK 13

(3) Has a notional or principal amount at or above the 

Appropriate Minimum Block Size applicable to such 

swap; and

(4) Is reported subject to the rules and procedures of the 

Swap Execution Facility or Designated Contract Market

and the rules described in this part, including the 

appropriate time delay requirements set forth in § 43.5.

Board of 

Directors

means the Board of Directors of a Swap Data 

Repository, or for those Swap Data repositories whose 

organizational structure does not include a Board of 

Directors, a body performing a function similar to that 

of a Board of Directors.

BOD 49.22(

a)

Business Day means the twenty-four hour day, on all days except 

Saturdays, Sundays and legal holidays, in the location of 

the reporting party or registered entity reporting data for 

the swap.

43.2(a

)

Business hours means the consecutive hours of one or more consecutive 

Business Days.

43.2(a

)

Cap Size means, for each swap category, the maximum notional 

or principal amount of a Publicly Reportable Swap 

Transaction that is Publicly Disseminated.

43.2(a

)

Commission 

Access

A Swap Data Repository shall provide access to the 

Commission for all SDR Data maintained by the Swap 

Data Repository pursuant to CFTC Rule 49.17(c).

49.17(

c)

Controls means the safeguards or countermeasures employed by 

the Swap Data Repository in order to protect the 

reliability, security, or capacity of its automated systems 

or the confidentiality, integrity, and availability of its 

SDR Data and SDR Information, and in order to enable 

the Swap Data Repository to fulfill its statutory and 

regulatory duties and responsibilities.

49.24(

j)(1)
KOR SDR RULEBOOK 14

Data 

Validation 

Acceptance 

Message

means a notification that SDR Data satisfied the data 

validation procedures applied by a Swap Data 

Repository.

49.2(a

)

Data 

Validation 

Error 

means that a specific data element of SDR Data did not 

satisfy the data validation procedures applied by a Swap 

Data Repository.

49.2(a

)

Data 

Validation 

Error Message 

means a notification that SDR Data contained one or 

more data validation error(s).

49.2(a

)

Data 

Validation 

Procedures 

procedures established by a Swap Data Repository 

pursuant to § 49.10 to validate SDR Data reported to the 

Swap Data Repository.

49.2(a

)

Designated 

Contract 

Market

mean a board of trade designated by the Commission as 

a contract market under the Act and in accordance with 

the provisions of part 38 of this chapter.

DCM 1.3

Direct 

Electronic 

Access

means an electronic system, platform, framework, or 

other technology that provides internet-based or other 

form of access to real-time SDR Data that is acceptable 

to the Commission and also provides scheduled data 

transfers to Commission electronic systems.

49.17(

b)(3)

Economically 

Related

means a direct or indirect reference to the same 

commodity at the same delivery location or locations, or 

with the same or a substantially similar cash market 

price series.

43.2(a

)

Emergency means any occurrence or circumstance that, in the 

opinion of the governing board of a registered entity, or 

a person or persons duly authorized to issue such an 

opinion on behalf of the governing board of a registered 

entity under circumstances and pursuant to procedures 

that are specified by rule, requires immediate action and 

threatens or may threaten such things as the fair and 

40.1(h

)
KOR SDR RULEBOOK 15

orderly trading in, or the liquidation of or delivery 

pursuant to, any agreements, contracts, swaps or 

transactions or the timely collection and payment of 

funds in connection with clearing and settlement by a 

derivatives clearing organization, including:

(1) Any manipulative or attempted manipulative 

activity;

(2) Any actual, attempted, or threatened corner, squeeze, 

congestion, or undue concentration of positions;

(3) Any circumstances which may materially affect the 

performance of agreements, contracts, swaps or 

transactions, including failure of the payment system or 

the bankruptcy or insolvency of any participant;

(4) Any action taken by any governmental body, or any 

other registered entity, board of trade, market or facility 

which may have a direct impact on trading or clearing 

and settlement; and

(5) Any other circumstance which may have a severe, 

adverse effect upon the functioning of a registered 

entity.

Enterprise 

Technology 

Risk 

Assessment

means a written assessment that includes, but is not 

limited to, an analysis of threats and vulnerabilities in 

the context of mitigating Controls. An Enterprise 

Technology Risk Assessment identifies, estimates, and 

prioritizes risks to Swap Data Repository operations or 

assets, or to market participants, individuals, or other 

entities, resulting from impairment of the 

confidentiality, integrity, and availability of SDR Data 

and SDR Information or the reliability, security, or 

capacity of automated systems.

49.24(

j)(1)

Foreign 

Regulator 

means a foreign futures authority as defined in section 

1a(26) of the Act, foreign financial supervisors, foreign 

central banks, foreign ministries, and other foreign 

authorities.

49.2(a

)
KOR SDR RULEBOOK 16

FuturesRelated Swapmeans a swap (as defined in section 1a(47) of the Act 

and as further defined by the Commission in 

implementing regulations) that is Economically Related 

to a futures contract.

43.2(a

)

Large Notional 

Off-Facility 

Swap 

means an Off-Facility Swap that has a notional or 

principal amount at or above the Appropriate Minimum 

Block Size applicable to such Publicly Reportable Swap 

Transaction and is not a Block Trade as defined in 

§ 43.2.

43.2(a

)

Local 

operating unit

(relating to 

LEI)

means an entity authorized under the standards of the 

Global Legal Entity Identifier System to issue legal 

entity identifiers.

LOU 45.6(a

)

Major 

currencies

means the currencies, and the cross-rates between the 

currencies, of Australia, Canada, Denmark, New 

Zealand, Norway, South Africa, South Korea, Sweden, 

and Switzerland.

43.2(a

)

Market 

Participant 

means any person participating in the swap market, 

including, but not limited to, Designated Contract 

Markets, derivatives clearing organizations, swap 

execution facilities, swap dealers, major swap 

participants, and any other counterparty to a swap 

transaction.

49.2(a

)

Mirror Swap means a swap:

To which—

A Prime Broker is a counterparty; or

Both counterparties are Prime Brokers;

That is executed contemporaneously with a 

corresponding Trigger Swap;

That has identical terms and pricing as the 

contemporaneously executed Trigger Swap, except:

43.2(a

)
KOR SDR RULEBOOK 17

That a mirror swap, but not the corresponding Trigger 

Swap, may include any associated Prime Brokerage 

service fees agreed to by the parties; and

As provided in paragraph (5) of this “mirror swap” 

definition;

With respect to which the sole price forming event is the 

occurrence of the contemporaneously executed Trigger 

Swap; and

The execution of which is contingent on, or is triggered 

by, the execution of the contemporaneously executed 

Trigger Swap. The contractually agreed payments and 

delivery amounts under a Mirror Swap may differ from 

those amounts of the corresponding Trigger Swap if:

Under all such mirror swaps to which the Prime Broker 

that is a counterparty to the Trigger Swap is also a 

counterparty, the aggregate contractually agreed 

payments and delivery amounts shall be equal to the 

aggregate of the contractually agreed payments and 

delivery amounts under the corresponding Trigger 

Swap; and

The market risk and contractually agreed payments and 

delivery amounts of all such mirror swaps to which a 

Prime Broker that is not a counterparty to the 

corresponding Trigger Swap is a party will offset each 

other, resulting in such Prime Broker having a flat 

market risk position at the execution of such mirror 

swaps.

Non-Major 

currencies

means all other currencies that are not Super-Major 

Currencies or Major currencies.

43.2(a

)

Novation means the process by which a party to a swap legally 

transfers all or part of its rights, liabilities, duties, and 

obligations under the swap to a new legal party other 

than the counterparty to the swap under applicable law.

43.2(a

)
KOR SDR RULEBOOK 18

Off-Facility 

Swap

means any swap transaction that is not executed on or 

pursuant to the rules of a Swap Execution Facility or 

Designated Contract Market.

43.2(a

)

Open Swap means an executed swap transaction that has not reached 

maturity or expiration, and has not been fully exercised, 

closed out, or terminated.

49.2(a

)

Other 

Commodity

means any commodity that is not categorized in the 

interest rate, credit, foreign exchange, equity, or other 

asset classes as may be determined by the Commission.

43.2(a

)

Physical 

Commodity 

Swap

means a swap in the Other Commodity asset class that 

is based on a tangible commodity.

43.2(a

)

Position means the gross and net notional amounts of open swap 

transactions aggregated by one or more attributes, 

including, but not limited to, the:

(1) Underlying instrument;

(2) Index, or reference entity;

(3) Counterparty;

(4) Asset class;

(5) Long risk of the underlying instrument, index, or 

reference entity; and

(6) Short risk of the underlying instrument, index, or 

reference entity.

49.2(a

)

Post-Priced 

Swap

means an Off-Facility Swap for which the price is not 

determined as of the time of execution.

43.2(a

)

Pricing Event means the completion of the negotiation of the material 

economic terms and pricing of a Trigger Swap.

43.2(a

)

Prime Broker means, with respect to a Mirror Swap and its related 

Trigger Swap, a swap dealer acting in the capacity of a 

Prime Broker with respect to such swaps.

43.2(a

)

Prime Broker 

Swap

means any swap to which a swap dealer acting in the 

capacity as Prime Broker is a party.

43.2(a

)
KOR SDR RULEBOOK 19

Prime 

Brokerage 

Agency 

Arrangement

means an arrangement pursuant to which a Prime Broker 

authorizes one of its Clients, acting as agent for such 

Prime Broker, to cause the execution of a Prime Broker 

Swap.

43.2(a

)

Prime 

Brokerage 

Agent

means a Client of a Prime Broker who causes the 

execution of one or more Prime Broker Swap(s) acting 

pursuant to a Prime Brokerage Agency Arrangement.

43.2(a

)

Public 

Dissemination 

and Publicly 

Disseminate

means to make freely available and readily accessible to 

the public Swap Transaction and Pricing Data in a nondiscriminatory manner, through the internet or other 

electronic data feed that is widely published. Such 

Public Dissemination shall be made in a consistent, 

usable, and machine-readable electronic format that 

allows the data to be downloaded, saved, and analyzed.

43.2(a

)

Publicly 

Reportable 

Swap 

Transaction

Publicly Reportable Swap Transaction means:

Unless otherwise provided in this part—

Any executed swap that is an arm's-length transaction 

between two parties that results in a corresponding 

change in the market risk position between the two 

parties; or

Any termination, assignment, Novation, exchange, 

transfer, amendment, conveyance, or extinguishing of 

rights or obligations of a swap that changes the pricing 

of the swap.

Examples of executed swaps that do not fall within the 

definition of publicly reportable swap may include:

Internal swaps between one-hundred percent owned 

subsidiaries of the same parent entity;

Swaps entered into by a derivatives clearing 

organization as part of managing the default of a 

clearing member.

43.2(a

)
KOR SDR RULEBOOK 20

These examples represent swaps that are not at arm's 

length and thus are not Publicly Reportable Swap 

Transactions, notwithstanding that they do result in a 

corresponding change in the market risk position 

between two parties.

Reference 

Price

means a floating price series (including derivatives 

contract prices and cash market prices or price indices) 

used by the parties to a swap or swaption to determine 

payments made, exchanged, or accrued under the terms 

of a swap contract.

43.2(a

)

Reporting 

Counterparty 

means the counterparty required to report SDR Data 

pursuant to part 43, 45, or 46 of this chapter.

And means the party to a swap with the duty to report a 

Publicly Reportable Swap Transaction in accordance 

with this part and section 2(a)(13)(F) of the Act.

49.2(a

)

43.2(a

)

Rule means any constitutional provision, article of 

incorporation, bylaw, Rule, regulation, resolution, 

interpretation, stated policy, advisory, terms and 

conditions, trading protocol, agreement or instrument 

40.1(i)
KOR SDR RULEBOOK 21

corresponding thereto, including those that authorize a 

response or establish standards for responding to a 

specific Emergency, and any amendment or addition 

thereto or repeal thereof, made or issued by a registered 

entity or by the governing board thereof or any 

committee thereof, in whatever form adopted.

SDR Data means the specific data elements and information 

required to be reported to a Swap Data Repository or 

disseminated by a Swap Data Repository pursuant to 

two or more of parts 43, 45, 46, and/or 49, as applicable 

in the context.

49.2(a

)

SDR 

Information

means any information that the Swap Data Repository 

receives or maintains related to the business of the Swap 

Data Repository that is not SDR data.

49.2(a

)

Section 8 

Material 

means the business transactions, SDR data, or market 

positions of any person and trade secrets or names of 

customers.

49.2(a

)

Super-Major 

Currencies

means the currencies of the European Monetary Union, 

Japan, the United Kingdom, and United States.

43.2(a

)

Swap Data means the specific data elements and information 

required to be reported to a Swap Data Repository 

pursuant to part 45 or made available to the Commission 

pursuant to this part, as applicable.

49.2(a

)

Swap Data 

Repository

means any person that collects and maintains 

information or records with respect to transactions or 

positions in, or the terms and conditions of, swaps 

entered into by third parties for the purpose of providing 

a centralized recordkeeping facility for swaps.

SDR 1.3

Swap 

Execution 

Facility

means a trading system or platform that is a Swap 

Execution Facility as defined in CEA section 1a(50) and 

in § 1.3 of this chapter and that is registered with the 

SEF 43.2(a

)
KOR SDR RULEBOOK 22

Commission pursuant to CEA section 5h and part 37 of 

this chapter.

Swap 

Transaction 

and Pricing 

Data 

means all data elements for a swap in appendix A of part 

43 that are required to be reported or Publicly 

Disseminated pursuant to this part.

43.2(a

)

Swap 

Transaction 

and Pricing 

Data 

means the specific data elements and information 

required to be reported to a Swap Data Repository or 

Publicly Disseminated by a Swap Data Repository 

pursuant to part 43, as applicable.

49.2(a

)

Swaps with 

Composite

Reference 

Prices

means swaps based on Reference Prices that are 

composed of more than one Reference Price from more 

than one swap category.

43.2(a

)

Trigger Swap means a swap:

That is executed pursuant to one or more Prime 

Brokerage Agency Arrangements;

To which one counterparty or both counterparties are 

Prime Brokers;

That serves as the contingency for, or triggers, the 

execution of one or more corresponding mirror swaps; 

and

That is a Publicly Reportable Swap Transaction that is 

required to be reported to a Swap Data Repository 

pursuant to this part and part 45 of this chapter. A Prime 

Broker Swap executed on or pursuant to the rules of a 

Swap Execution Facility or Designated Contract Market

shall be treated as the Trigger Swap for purposes of this 

part.

43.2(a

)
KOR SDR RULEBOOK 23

2. Corporate structure

2.1 Mission Statement of KOR SDR

KOR’s mission is to be the most progressive Swap Data Repository where Clients can efficiently, 

flexibly and cost effectively meet their regulatory obligations.

References: CFTC Rule(s) §49.20(b)(2)(i).

2.2 Board of Directors

The following Governance Principles have been adopted by the Board of Directors (the “Board”) 

of KOR Reporting Inc. (the “Company”) to serve as a flexible framework to assist the Board in 

the exercise of its responsibilities. These Governance Principles reflect the Board’s commitment 

to monitor the effectiveness of policy and decision making both at the Board and management 

level. These governance principles should be interpreted in the context of all applicable laws, KOR 

Reporting’s Bylaws, other governing legal documents and company policies. These governance 

principles are subject to modification from time to time by the Board.

KOR’s governance arrangements are transparent to support, among other things, the objectives of 

the Federal Government pursuant to Section 21(f)(2) of the Act.

References: CFTC Rule(s) §49.20(a), 49.20(b), 49.20(b)(1), and 49.20 (b)(2).

2.2.1 Mission Statement of the Board of Directors

The Board believes that all directors represent the balanced interests of the Company as a whole.

It represents the stakeholders’ interest in perpetuating a successful business and optimizing longterm financial returns consistent with legal requirements and ethical standards. The Board also 

recognizes the important role the Company plays in the marketplace and the importance of 

providing active governance designed to ensure the safety and soundness of its operations. The 

Board is responsible for establishing the general oversight framework, including identifying and 

taking reasonable actions, intended to achieve these goals.

The Board’s principal oversight functions are to:

a. Review, approve and monitor the Company’s major strategic, financial and business activities 

and opportunities, including declarations of dividends and major transactions;

b. Review, approve and monitor the Company’s annual budget;

c. Review, monitor and take reasonable actions with respect to the Company’s 

financial performance;
KOR SDR RULEBOOK 24

d. Review, assess and provide oversight of the Company’s risk management practices, 

the integrity and adequacy of its enterprise risk management program, which is designed 

to identify, manage and plan for its Swap Data Repository, compliance, financial, operational, 

reputational, and strategic and commercial risks;

e. Select, evaluate and compensate the Chief Compliance Officer and, if necessary, appoint 

a replacement;

f. Review and monitor plans for the succession of the Chief Executive Officer and other 

members of senior management.

References: CFTC Rule(s) §49.20(b)(2)(ii) and 49.20(b)(4).

2.3 Board membership and structure

2.3.1 Size of Board

The Board shall be comprised of at least three Directors. The size of the Board is designed to 

ensure it maintains the appropriate expertise, industry knowledge and skills to effectively oversee 

the Company’s complex business while maintaining compliance with applicable listing and 

regulatory requirements.

2.3.2 Board Composition; Mix of Independent and Employee Directors

At least a majority of the directors will be independent directors as determined in accordance with 

the section “Determination of ‘Independent’ Directors” below (each an “Independent Director” 

and collectively the “Independent Directors”). The Board has adopted and disclosed categorical 

standards to assist it in determining a director’s independence. The Board believes that it is often 

in the best interest of KOR Reporting to have non-Independent Directors. The expectation of the 

Board is that the number of directors who also serve as employees of the Company (each an 

“Employee Director” and collectively the “Employee Directors”) should be at least one and fewer 

than the number of Independent Directors.

2.3.3 Board Membership Criteria

The Board seeks directors from diverse professional backgrounds who combine a broad spectrum 

of experience and expertise with a reputation for integrity. 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.
KOR SDR RULEBOOK 25

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 of Committees at the request of the Board; and

g. Is not a Disqualified Person (as described below).

A “Disqualified Person” is any person who (i) is or has been subject to any statutory 

disqualification under Section 3(a)(39) of the Securities Exchange Act or Sections 8a (2)-(4) of 

the Commodity Exchange Act or (ii) is or has been subject to disqualification under 17 

CFR § 1.63.

Each Board member is expected to ensure that his or her other commitments do not materially 

interfere with his or her service overall as a director.

2.3.4 Determination of “Independent” Directors.

The Board shall review annually the relationships that each director has with the Company (either 

directly or as a partner, equity holder or officer of an organization that has a 

relationship with the Company). Following such annual review, only those directors who the 

Board affirmatively determines have no material relationship with the Company (either directly or 

as a partner, equity holder, or officer of an organization that has a relationship with the Company) 

will be considered Independent Directors, subject to additional qualifications 

prescribed applicable law. Each director shall notify the Chairman and Chief Executive Officer as 

soon as practicable of any event, situation or condition that may affect the Board’s evaluation of 

his or her independence.

2.3.5 Ethics and Conflicts of Interest

The Board has adopted a Conflict of Interest Policy. The Conflict of Interest Policy incorporates 

various provisions of applicable corporate law and other standards adopted by the Company 

to insure that Board and committee decisions are not impacted by conflicts of interest. Directors 

are expected to avoid any action, position or interest that conflicts with an interest of the Company, 

or gives the appearance of a conflict, in accordance with the Conflict of Interest Policy and any

rules adopted by the Company. The Company annually solicits information from directors in order 

to monitor potential conflicts of interest and directors are expected to be mindful of their fiduciary 

obligations to the Company.

When faced with a situation involving a potential conflict of interest, directors are encouraged to 

seek advice from the General Counsel or from outside counsel designated by the General Counsel.
KOR SDR RULEBOOK 26

Directors are expected to act in compliance with the Company’s Board of Directors Code of 

Ethics.

References: CFTC Rule(s) §49.21(b).

3. Client access to data

3.1 Procedures for gaining access to KOR SDR 

KOR SDR provides services as a Swap Data Repository (“SDR”). These services are available to 

all Market Participants on a fair, open, and equal basis. In order to obtain access to KOR SDR, a 

Market Participant must execute the KOR Universal Services Agreement (“USA “) and applicable 

Addendums. KOR SDR does not, and will not, tie or bundle the offering of mandated regulatory 

services with ancillary services offered by KOR SDR or a KOR Affiliate. 

KOR Reporting and KOR Financial are affiliates, but are not in a subsidiary relationship. Privity 

between the Client and the applicable KOR entity is established through Addendums to the USA.

Details on how to become a Client of KOR SDR can be found in the Client Onboarding Guide.

KOR SDR imposes the following qualifications on Clients of KOR SDR (collectively, the “Client 

Criteria”): 

a. A valid LEI; 1

b. Execution of the KOR Universal Services Agreement (“KOR USA”) and applicable Addendums;

c. Compliance with the KOR SDR Rulebook and KOR SDR Technical Specifications2 as published 

by KOR SDR; and

d. Successful passing of KOR Know Your Customer (KYC) procedures, which will include but 

limited to compliance with Applicable Law, specifically those related to sanctions 

administered and enforced the by the Office of Foreign Assets Control of the U.S. Department 

of the Treasury (“OFAC”).

As a general policy, KOR SDR requires all applicants to execute and submit KOR Universal 

Services Agreement and applicable addendums in electronic form only. Paper copies will not be 

accepted. 

1References: CFTC Rule §45.6, with the exception of registered execution venues which must provide their MIC Code

2 The KOR SDR Technical Specifications include all CFTC Technical Specifications in addition to KOR SDR’s additional 

fields and validations. 
KOR SDR RULEBOOK 27

In the event a Client at any point fails to comply with any or all of the Client Criteria, such Client 

shall notify KOR immediately upon discovery. Notice must include a description of all relevant 

events associated with the failure, planned remediation where applicable, and any other 

information reasonably requested by KOR.

References: CFTC Rule(s) §49.27(a)(1) and 49.27(a)(2).

3.2 Client Rules & Applicable Law

By entering into the KOR USA, each Client agrees to be bound by the terms of the USA, this 

Rulebook, and any published policies and guides. 

KOR and its Clients are subject to all Applicable Law including Applicable Regulations relevant 

to the Client or the transaction associated with such Client. Any Applicable Law affecting the (i) 

duties or obligations of KOR SDR or (ii) the performance of any Client shall take precedence over 

the rules of the KOR SDR Service. In the event of a conflict between Applicable Law and the rules 

of the KOR SDR Service, Applicable Law shall prevail.

3.3 Delegated Reporter Client access

Where a Client has authorized a Third-party Reporter or Related Entity Client under the same 

Parent to submit on its behalf and access its data, KOR will provide access to the Third-party 

Reporter or Client as long as it has executed the appropriate KOR Universal Services Agreement 

and applicable addendums and the Client has granted permission through the Client Portal. Related 

Entity Clients and Third-party Reporters are together referred to as Delegated Reporters.

3.4 Authorized Access Client access

Where a Client has authorized a Third-party Client to access its data, but not submit on its behalf, 

KOR will provide access to the Authorized Access Client as long as it has executed the appropriate 

KOR Universal Services Agreement and applicable addendums and the Client has granted 

permission through the Client Portal.

3.5 Users

3.5.1 Administrative Users

Clients are required to maintain at least two Administrative Users on the KOR SDR System. This 

information must be provided in order to execute the KOR Client Agreement. The correct contact

information must be kept up to date at all times.

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 SDR System on behalf 
KOR SDR RULEBOOK 28

of the Client including Third-party Client access. Administrative Users will be the main point of 

contact for KOR’s Client Services in regard to urgent issues. 

3.5.2 User Access to data

3.5.2.1 Trades, related data and reports 

Any Market Participant that has executed a Client Agreement may access SDR Data in the KOR 

SDR to which they are a party to or for which they have been granted access to on behalf of a 

Client. Access to KOR SDR is strictly limited to active Users with valid permissions created by 

their Client’s Administrative User. User set up details are outlined in the User Guide. 

Upon set up, Users will be provided logins and the ability to access data in the KOR SDR per the 

User Guide. Access is driven off the Client’s LEIs for which the User has been associated. Users 

may be granted access to multiple LEIs under the same Parent as related entities. 

The KOR SDR System will allow Users to view full trade details associated with any individual 

swap and all associated messages, errors and reports which they have permission to view where 

their Client LEI is one of the following fields:

a. Central counterparty

b. Clearing member

c. Counterparty 1

d. Counterparty 2

e. Submitter identifier

f. Reporter identifier3

g. Agent4

For swaps executed on a SEF or DCM, the SEF or DCM may access the swap that they had the 

requirement to report, but not any data subsequently reported by the Reporting Counterparty. 

Clearing Members that have executed the appropriate KOR Universal Services Agreement and 

applicable Addendums may access swaps where they are listed as the Clearing Member. 

3 This field was added by KOR to identify who the Submitter identifier is submitting on behalf of for access validation.

This will not always be counterparty 1, as the Submitter may be a Delegated Reporter for a SEF with the requirement 

to report. 

4 KOR SDR has added the Agent field in order to correctly permission investment managers to view trades where 

they were the execution agent but are not the counterparty or submitter. 
KOR SDR RULEBOOK 29

Investment Managers that have executed the appropriate KOR Universal Services Agreement and 

applicable Addendums and been granted access from their managed funds which are Clients, may 

access swaps where they are a counterparty or the executing agent. 

3.5.2.2 Anonymous execution 

SDR Data and SDR Information related to a particular swap transaction that is maintained by KOR 

SDR may be accessed by either counterparty to that particular swap. However, the SDR Data and 

SDR Information maintained by KOR SDR that may be accessed by either counterparty to a 

particular swap shall not include the identity or the legal entity identifier of the other counterparty 

to the swap, or the other counterparty's clearing member for the swap, if the swap is executed 

anonymously on a SEF or DCM and cleared at a derivatives clearing organization (“DCO”). This 

also applies to any Client accessing data on another Client’s behalf acting as that party, including 

Delegated Reporters, Authorized Access Clients, and investment managers. 

References: CFTC Rule(s) §49.17(f)(2).

3.5.3 Review of Market Participant access to KOR SDR

Client’s designated Administrative Users are expected to maintain correct User access at all times. 

In addition, following the end of each calendar quarter, all Clients will be provided with a report 

on current User’s access levels and a list of all Client’s they have granted access to their data. At 

least one of the designated Administrative Users at 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.

When one or both of the Client’s designated Administrative Users needs to be amended, the Client 

must contact KOR Client Service (support@korfinancial.com).

Records of all User access are maintained and available for review by the Client and KOR 

Compliance at all times. 

References: CFTC Rules(s): §49.17(d)(1)(I) and 49.17(d)(1)(ii).

4. Unique Identifiers

4.1 Unique transaction identifiers (UTI)

Each swap shall be identified in all recordkeeping and all Swap Data reporting by the use of a 

unique transaction identifier, which shall be created, transmitted, and used for each swap.

Each registered entity and swap counterparty shall include the unique transaction identifier for a 

swap in all of its records and all of its Swap Data reporting concerning that swap, from the time it 
KOR SDR RULEBOOK 30

creates or receives the unique transaction identifier as provided in this section, throughout the 

existence of the swap and for as long as any records are required by the Act or Commission 

regulations to be kept concerning the swap, regardless of any life-cycle events concerning the 

swap, including, without limitation, any changes with respect to the counterparties to the swap.

KOR SDR shall not allow any trade executed on or after UTIs are implemented to be submitted 

with a Unique Swap Identifier (“USI”) in lieu of a UTI. 

Every submission to KOR SDR shall contain the appropriate UTI, otherwise the submission will 

be rejected. KOR SDR shall validate the format and uniqueness of every UTI. If a party submits 

the incorrect UTI, they must error that UTI and resubmit the swap as a new message with the 

correct UTI. When the correct UTI is submitted it will be considered a new trade and if it is 

submitted after the required reporting timelines, will be classified as a late report. 

References: CFTC Rule(s) §45.5 and 45.5(f).

4.1.1 UTI Creation format

The Market Participant designated to generate the UTI shall generate and assign the UTI at, or As

Soon As Technologically Practicable (ASATP) following, the time of execution of the swap, and 

prior to the reporting of required Swap Data. The unique transaction identifier shall consist of a 

single data element with a maximum length of 52 characters that contains two components:

a. The legal entity identifier of the Market Participant who generated the UTI5; and

b. An uppercase alphanumeric code generated and assigned to that swap by the automated 

systems of the SEF or DCM, which shall be unique with respect to all such codes generated 

and assigned by that SEF or DCM.

References: CFTC Rule(s) §45.5(a)(1)(i)-(ii), §45.5(b)(1) (i)-(ii), §45.5(c)(1) (i)-(ii), §45.5(d)(1)

(i)-(ii), §45.5(e), and 45.5(g)(1)-(2).

4.1.2 UTI Transmission

The Market Participant designated to generate the UTI shall transmit the unique transaction 

identifier electronically as follows:

a. To the Swap Data Repository to which the swap is reported as part of all submissions.

b. To each counterparty to the swap, ASATP after execution of the swap but no later than 

prescribed by 45.5.

5 This may be the LEI of the Third-party service provider.
KOR SDR RULEBOOK 31

c. To the DCO, if any, to which the swap is submitted for clearing, as part of the required swap 

creation data transmitted to the DCO for clearing purposes.

d. To the agent in the case of a post-allocation swap.

References: CFTC Rule(s) §45.5(a)(2)(i)-(iii), 45.5(b)(2) (i)-(iii), 45.5(c)(2) (i)-(iii),45.5(d)(2) (i)-

(iii), and 45.5(e).

4.1.3 UTI Creation party

4.1.4 Swaps executed on or pursuant to the rules of a SEF or DCM

For each swap executed on or pursuant to the rules of a SEF or DCM, the SEF or DCM shall 

create6and transmit a unique transaction identifier.

References: CFTC Rule(s) §45.5(a).

4.1.5 Off-Facility Swaps with a financial entity Reporting Counterparty 

For each Off-Facility Swap where the Reporting Counterparty is a financial entity participant, the 

Reporting Counterparty shall create and transmit a unique transaction identifier as provided in 

paragraphs (b)(1) and (2) of this section.

References: CFTC Rule(s) §45.5(b).

4.1.6 Off-Facility Swaps with a non-SD/MSP/DCO Reporting 

Counterparty that is not a financial entity

For each Off-Facility Swap for which the Reporting Counterparty is a non-SD/MSP/DCO 

counterparty that is not a financial entity, the Reporting Counterparty shall either: Create and 

transmit a unique transaction identifier; or request that the Swap Data Repository to which required 

swap creation data will be reported create and transmit a unique transaction identifier.

Upon such a request, KOR SDR will generate and assign a UTI ASATP following receipt of the 

request from the Reporting Counterparty. The UTI shall consist of a single data element with a 

maximum length of 52 characters that contains two components: (i) The legal entity identifier of 

the Swap Data Repository; and (ii) An uppercase alphanumeric code generated and assigned to 

that swap by the automated systems of KOR SDR, which shall be unique with respect to all such 

codes generated and assigned by KOR SDR. The Reporting Counterparty is then obligated to 

submit the provided UTI for all messages regarding that swap. 

6 Per KOR Rule: “UTI Creation Format”
KOR SDR RULEBOOK 32

For swaps where the Reporting Counterparty requested KOR SDR generate the UTI and the nonReporting Counterparty is not a KOR Client, the Reporting Client is required to provide KOR

SDR with the contact email of their counterparty. Where the non-Reporting Counterparty is not 

already a Client, KOR SDR will send an email notice to such party that a swap they are a party of 

has been reported to KOR SDR. This communication will include a link to the applicable KOR 

Agreements that they can execute electronically and at no cost as a Verification Client in order to 

gain secure access to KOR SDR in order for KOR SDR to transmit the UTI. 

Where the trade is intended to be cleared, and the DCO is not already a Client, the Reporting Client 

is required to provide KOR SDR with a contact and the contact’s email of the DCO. Where the 

DCO is not already a Client, KOR SDR will send an email notice to the DCO that a swap they are 

the intended DCO for has been reported to KOR SDR. This communication will include a link to 

a KOR Client Agreement that they can execute electronically and at no cost in order to gain secure 

access to KOR SDR in order for KOR SDR to transmit the UTI. 

When a Reporting Counterparty requests KOR to create their UTI, it is then their responsibility to 

submit the swap and all subsequent messages regarding that swap with the same UTI KOR SDR 

provided. Details on how to obtain a KOR SDR generated swap can be found in the User Guide. 

References: CFTC Rule(s) §45.5(c), 45.5(c)(1), and 45.5(c)(2).

4.1.7 Off-Facility Swaps with a DCO Reporting Counterparty

For each Off-Facility Swap where the Reporting Counterparty is a DCO, the Reporting 

Counterparty shall create7and transmit a unique transaction identifier.

References: CFTC Rule(s) §45.5(d).

4.1.8 Third-party service reporter

If a registered entity or Reporting Counterparty required by 45.5 to report required swap creation 

data or required swap continuation data contracts with a third-party service reporter to facilitate 

reporting pursuant to § 45.9, the registered entity or Reporting Counterparty shall ensure that such 

Delegated Reporter creates and transmits the unique transaction identifier as otherwise required.

References: CFTC Rule(s) §45.5(g).

4.1.9 Cross-jurisdictional swaps

7 Per KOR Rule: “UTI Creation Format”
KOR SDR RULEBOOK 33

If a swap is also reportable to one or more other jurisdictions with a regulatory reporting deadline 

earlier than the deadline set forth in § 45.3 or in Part 43 of CFTC rules, the same unique transaction 

identifier generated according to the rules of the jurisdiction with the earliest regulatory reporting 

deadline shall be transmitted and used in all recordkeeping and all Swap Data reporting.

As KOR SDR does not know the cross-jurisdictional reporting obligations of any swaps or the 

involvement of Delegated Reporters, it shall not validate whose LEI is used to generate a UTI. 

References: CFTC Rule(s) §45.5(h).

4.2 Legal Entity Identifiers (LEI)

Each SEF, DCM, DCO, Swap Data Repository, clearing member, agent, submitting entity, 

Reporting Counterparty and non-Reporting Counterparty to any swap that is eligible to receive a 

legal entity identifier shall obtain, maintain, and be identified in all recordkeeping and all Swap 

Data reporting by a single legal entity identifier.

The legal entity identifier used in all recordkeeping and all Swap Data reporting shall be issued 

under, and shall conform to, ISO Standard 17442, Legal Entity Identifier (LEI), issued by the 

International Organization for Standardization.

During the Client onboarding process, KOR SDR requires the Client provide their LEI code and 

legal name that aligns with GLEIF along with additional information such as entity type (e.g., 

Swap Dealer, Major Swap Participant) and applicable holiday calendar. 

Reference data for each SEF, DCM, DCO, SDR, entity reporting, and counterparty to any swap 

shall be reported, by self-registration, third-party registration, or both, to a Local Operating Unit

in accordance with the standards set by the Global Legal Entity Identifier System. All subsequent 

changes and corrections to reference data previously reported shall be reported, by selfregistration, third-party registration, or both, to a Local Operating Unit ASATP following 

occurrence of any such change or discovery of the need for a correction.

References: CFTC Rule(s) §45.6, 45.6(b), and 45.6(c).

4.2.1 Use of the legal entity identifier

Each SEF, DCM, DCO, Swap Data Repository, clearing member, agent, submitting entity, 

Reporting Counterparty and non-Reporting Counterparty shall use legal entity identifiers to 

identify itself and swap counterparties in all recordkeeping and all Swap Data reporting. If a swap 

counterparty is not eligible to receive a legal entity identifier as determined by the Global Legal 

Entity Identifier System, such counterparty shall be identified in all recordkeeping and all Swap 

Data reporting with an alternate identifier as prescribed by the Commission. It is the duty of the 
KOR SDR RULEBOOK 34

Reporting Counterparty to always submit a unique and consistent Natural Person Identifier. In 

order to consistently submit a unique value, the LEI of the Reporting Counterparty followed by 

natural person’s email shall be used for the identifier.

Each SD, MSP, SEF, DCM, DCO, and Swap Data Repository shall maintain and renew its legal 

identity identifier in accordance with the standards set by the Global Legal Entity Identifier 

System.

Each financial entity Reporting Counterparty executing a swap with a counterparty that is eligible 

to receive a legal entity identifier, but has not been assigned a legal entity identifier, shall, prior to 

reporting any required swap creation data for such swap, use best efforts to cause a legal entity 

identifier to be assigned to the counterparty. If these efforts do not result in a legal entity identifier 

being assigned to the counterparty prior to the reporting of required swap creation data, the 

financial entity Reporting Counterparty shall promptly provide the identity and contact 

information of the counterparty to the Commission.

Per the KOR SDR Technical Specification, KOR SDR shall not accept messages that do not 

contain LEIs published by GLEIF. The exception being fields which allow Natural Person 

Identifiers or Privacy Law identifiers, no other identifier types will be accepted. KOR SDR shall 

not accept LEIs with a status of “INACTIVE” on GLEIF. If an LEI is published under a Local 

Operating Unit, but is not on GLEIF, it will not be accepted. 

The Reporting Counterparty nor other counterparty LEI may be updated by a submission. In the 

event the incorrect LEI was submitted the UTI must be Errored, and a new swap reported with a 

new UTI. In the event of a corporate action updates a UTI, the Reporting Counterparty must notify 

KOR SDR. KOR SDR shall validate the change on GLEIF and update the LEI on all applicable 

records. 

If a Reporting Counterparty ports swaps in from another SDR that used a substitute identifier, 

those swaps shall be ported in using the correct LEI or if the party is not eligible for an LEI then 

the Natural Person Identifier. 

References: CFTC Rule(s) §45.6(d)(1), 45.6(d)(2), 45.6(d)(3), and 45.6(d)(4).

4.2.2 Privacy law identifiers (PLI)
KOR SDR RULEBOOK 35

The term “Privacy Law Identifier” or “PLI” is defined as “a unique identifier, which is not an LEI, 

and is used to identify a Privacy Law Counterparty8 pursuant to [CFTC Letter No. 13-41].” The 

foregoing PLI definition further states that “[e]ach Reporting Counterparty shall use a consistent

and static [PLI] for a Privacy Law Counterparty in each instance that it would use the Opposite 

LEI and Other Enumerated Identifiers.” 

Values such as “name withheld” and similar generic terms that do not correspond to a particular 

Privacy Law Counterparty do not satisfy the PLI condition. To satisfy the PLI condition of relief 

in the prior and current No-action letters, a PLI must be unique to each Privacy Law Counterparty 

and identify the Privacy Law Counterparty to the exclusion of all other counterparties.

KOR SDR will allow a value for Privacy Law Identifier (“PLI”) to be submitted for fields as 

allowed in the KOR SDR Technical Specifications. It is the duty of the Client to abide by the 

requirements of when PLIs may be used per the applicable CFTC No-action letter. 

It is the duty of the Client to identify and inform KOR SDR when the use of a PLI is no longer 

applicable in order to upgrade all trades to the applicable LEI without having to error and create 

new UTIs for the swaps. 

References: CFTC No-action letter(s) 12-46, 13-41, 16-03, 16-33, and 17-16.

4.3 Unique Product Identifiers (UPI)

Each swap shall be identified in all recordkeeping and all Swap Data reporting by means of a 

unique product identifier and product classification system. Each swap sufficiently standardized 

to receive a unique product identifier shall be identified by a unique product identifier. Each swap 

not sufficiently standardized for this purpose shall be identified by its description using the product 

classification system.

References: CFTC Rule(s) §45.7.

8 means a non-Reporting Counterparty or a Reporting Entity’s counterparty that meets all of the following criteria:

(1) The counterparty is not a Commission registered swap dealer (“SD”) or major swap participant (“MSP”); 

(2) The counterparty is a non-U.S. person; 

(3) The counterparty is not guaranteed by, or an affiliate conduit of, a U.S. person; and 

(4) The counterparty is located in an Enumerated Jurisdiction. 
KOR SDR RULEBOOK 36

4.3.1 Use of the unique product identifier and product classification 

system by registered entities and swap counterparties

When a unique product identifier and product classification system has been designated by the 

Commission, each registered entity and swap counterparty shall use the unique product identifier 

and product classification system in all recordkeeping and Swap Data reporting.

Before a unique product identifier and product classification system has been designated by the 

Commission, each registered entity and swap counterparty shall use the internal product identifier 

or product description used by the Swap Data Repository to which a swap is reported in all 

recordkeeping and Swap Data reporting.

References: CFTC Rule(s) §45.7(c)(1) and §45.7(c)(2).

4.3.2 KOR SDR’s temporary unique product identifier system

Until such a time that the Commission designates a UPI provider, KOR’s unique product identifier 

and product classification system shall identify and describe the swap Asset Class and the subtype within that Asset Class to which the swap belongs, and the underlying product for the swap, 

with sufficient distinctiveness and specificity to enable the Commission and other financial 

regulators to fulfill their regulatory responsibilities and to assist in real time reporting of swaps as 

provided in the Act and Part 43 of CFTC rules. The level of distinctiveness and specificity which 

the unique product identifier will provide shall be determined separately for each swap Asset Class.

KOR will use the fields and guidance as published by CPMI and IOSCO in the Technical Guidance 

on the Harmonization of the Unique Product Identifier9. Until the UPI is available for use, KOR 

will attempt to follow the public standards and guidance regarding the UPI creation in order to 

more seamlessly migrate to the UPI when available. Clients will have access to all allowed data 

values for the product fields. 

Before executing and reporting a swap the Client must verify the applicable product data values 

exist in the KOR product schema, if they do not, the Client must contact KOR and provide the 

required new values and their public source or other pertinent details for reference to the KOR 

Client Support group (support@korfinancial.com) a minimum of 48 business hours before 

reporting is required. Failure to do so could result in late reporting. 

References: CFTC Rule(s) §45.7(a).

9 https://www.bis.org/cpmi/publ/d169.pdf
KOR SDR RULEBOOK 37

5. Client duties and obligations regarding CFTC Rule Part 45 data

5.1 Swap Data reporting: Creation data

5.1.1 Swaps executed on or pursuant to the rules of a SEF or DCM

For each swap executed on or pursuant to the rules of a SEF or DCM, the SEF or DCM shall report 

required swap creation data electronically to a Swap Data Repository not later than the end of the 

next Business Day following the execution date.

KOR SDR shall provide the Commission and the SEF, DCM, or their Delegated Reporter with a 

daily report of all swaps reported that day that did not meet the prescribed timeline. It is the duty 

of the SEF or DCM, or their Delegated Reporter to review these reports and identify any systematic 

issues in reporting that need to be resolved and make necessary updates as soon as practicable. 

Late reporting is based on KOR SDR calculated Original Submission Timestamp vs. the Execution 

Timestamp. The Original Submission Timestamp is calculated based on when the swap is first 

received by KOR SDR and has passed all KOR SDR validations. Business Days means the twentyfour-hour day, on all days except Saturdays, Sundays, and legal holidays, in the location of the 

reporting party or registered entity reporting data for the swap. For swap execution facilities or 

DCMs, the US Federal Holiday calendar and Eastern time zone is used. 

References: CFTC Rule(s) §45.0(a) and 43.2(a).

5.1.2 Off-Facility Swaps

For each Off-Facility Swap, the Reporting Counterparty shall report required swap creation data 

electronically to KOR SDR as defined in the KOR SDR Technical Specifications, as applicable.

If the Reporting Counterparty is a SD, MSP, or DCO, the Reporting Counterparty shall report 

required swap creation data electronically to a Swap Data Repository not later than the end of the 

next Business Day following the execution date.

If the Reporting Counterparty is a non-SD/MSP/DCO counterparty, the Reporting Counterparty

shall report required swap creation data electronically to a Swap Data Repository not later than the 

end of the second Business Day following the execution date.

KOR SDR shall provide the Commission and the Reporting Counterparty, or their Delegated 

Reporter with a daily report of all swaps reported that day that did not meet the prescribed timeline. 

It is the duty of the Reporting Counterparty, or their third-party representative to review these 

reports and identify any systematic issues in reporting that need to be resolved and make necessary 

updates as soon as practicable.
KOR SDR RULEBOOK 38

Late reporting is based on the KOR SDR calculated Original Submission Timestamp vs. the 

Execution Timestamp. The Original Submission Timestamp is calculated based on when the swap 

is first received by KOR SDR and has passed all KOR SDR validations. Business Days means the 

twenty-four-hour day, on all days except Saturdays, Sundays, and legal holidays, in the location 

of the reporting party or registered entity reporting data for the swap. For Reporting 

Counterparties, the US Federal Holiday calendar and Eastern time is used unless the Client that is 

the Reporting Counterparty provided a different calendar, in which their local calendar and time 

zone are used. Swaps with an “Event type” of “PORT” are excluded from this report. 

References: CFTC Rule(s) §45.3(b), 45.3(b)(1), 45.3(b)(2), and 43.2.

5.1.3 Allocations

For swaps involving allocation, required swap creation data shall be reported electronically to a 

single Swap Data Repository as follows.

References: CFTC Rule(s) §45.3(c).

5.1.4 Initial swap between Reporting Counterparty and agent

The initial swap transaction between the Reporting Counterparty and the agent shall be reported 

as defined in the KOR SDR Technical Specifications, as applicable. A unique transaction identifier

for the initial swap transaction shall be created.

References: CFTC Rule(s) §45.3(c)(1).

5.1.5 Post-allocation swaps

5.1.6 Duties of the agent 

The agent shall inform the Reporting Counterparty of the identities of the Reporting Counterparty's 

actual counterparties resulting from allocation, ASATP after execution, but no later than eight 

Business Hours after execution.

References: CFTC Rule(s) §45.3(c)(2)(i).

5.1.7 Duties of the Reporting Counterparty 

The Reporting Counterparty shall report required swap creation data, as defined in the KOR SDR 

Technical Specifications, for each swap resulting from allocation to the same Swap Data

Repository to which the initial swap transaction is reported. The Reporting Counterparty shall 

create a unique transaction identifier for each such swap.
KOR SDR RULEBOOK 39

The Reporting Counterparty is required to submit the additional KOR SDR defined field: Agent, 

with the LEI of the investment manager that executed the initial swap. This field is required in 

order for KOR SDR to provide access to the investment manager. There is no additional time 

added to the deadline to report post-allocation swaps.

References: CFTC Rule(s) §45.3(c)(ii).

5.1.8 Multi-asset swaps

For each multi-asset swap, required swap creation data and required swap continuation data shall 

be reported to a single Swap Data Repository that accepts swaps in the Asset Class treated as the 

primary Asset Class involved in the swap by the SEF, DCM, or Reporting Counterparty reporting 

required swap creation data pursuant to this section.

As KOR SDR accepts swaps in all Asset Classes, all multi-asset swaps are accepted by KOR SDR.

References: CFTC Rule(s) §45.3(d).

5.1.9 Mixed swaps

For each mixed swap, required swap creation data and required swap continuation data shall be 

reported to a Swap Data Repository and to a Security-Based Swap Data Repository registered with 

the Securities and Exchange Commission. This requirement may be satisfied by reporting the 

mixed swap to a Swap Data Repository or Security-Based Swap Data Repository registered with 

both Commissions.

The registered entity or Reporting Counterparty reporting required swap creation data pursuant to 

this section shall ensure that the same unique transaction identifier is recorded for the swap in both 

the Swap Data Repository and the Security-Based Swap Data Repository.

References: CFTC Rule(s) §45.3(e)(1) and 45.3(e)(2).

5.2 Swap Data reporting: Continuation data

For each swap, regardless of Asset Class, Reporting Counterparties and DCOs required to report 

required swap continuation data shall report life-cycle event data for the swap electronically to a 

Swap Data Repository within the applicable deadlines.

Clients must follow the KOR SDR Technical Specifications to submit continuation data. For open 

swaps, all continuation data submissions must include all applicable fields and be submitted 

according to the format and validations prescribed by KOR SDR at the time of submission and not 

at the time the trade was initially executed. 
KOR SDR RULEBOOK 40

Clients shall not submit continuation data messages that do not update any KOR SDR fields or 

correct a previous submission. 

KOR SDR shall provide the Commission and the Reporting Counterparty, or their Delegated 

Reporter with a daily report of all swaps with continuation data reported that day that did not meet 

the prescribed timeline. It is the duty of the Reporting Counterparty, or their third-party 

representative to review these reports and identify any systematic issues in reporting that need to 

be resolved and make necessary updates as soon as practicable.

Continuation late reporting is based on the KOR SDR calculated Submission Timestamp vs. the 

Event Timestamp. The Submission Timestamp is calculated based on when the swap message is 

received by KOR SDR and has passed KOR SDR validations. Business Days means the twentyfour-hour day, on all days except Saturdays, Sundays, and legal holidays, in the location of the 

reporting party or registered entity reporting data for the swap. For Reporting Counterparties, the 

US Federal Holiday calendar and Eastern time is used unless the Client that is the Reporting 

Counterparty provided a different calendar, in which their local calendar and time zone are used. 

References: CFTC Rule(s) §45.4(a) and 43.2.

5.2.1 Continuation data reporting for original swaps

For each original swap, the DCO shall report required swap continuation data, including 

terminations, electronically to the Swap Data Repository to which the swap that was accepted for 

clearing was reported. Such required swap continuation data shall be accepted and recorded by 

KOR SDR when KOR SDR possesses the original swap report.

The DCO that accepted the swap for clearing shall report all life-cycle event data electronically to 

a Swap Data Repository not later than the end of the next Business Day following the day that any 

life-cycle event occurs with respect to the swap.

In addition to all other required swap continuation data, life-cycle event data shall include all of 

the following:

a. The legal entity identifier of the Swap Data Repository to which all required swap creation 

data for each clearing swap was reported by the DCO;

b. The unique transaction identifier of the original swap that was replaced by the clearing swaps; 

and

c. The unique transaction identifier of each clearing swap that replaces a particular original 

swap.

The KOR SDR Technical Specifications defines the format of the original swap termination 

message. 
KOR SDR RULEBOOK 41

KOR SDR shall provide the Commission and the Reporting Counterparty, or their Delegated 

Reporter with a daily report of all swaps reported two Business Days

10 prior that were submitted 

with the value of “I” for the field “Cleared” and have not been terminated. As KOR SDR does not 

know the identity of the Clearing Organization, it is the duty of the Reporting Counterparty, to 

contact the Clearing Organization to correct the data.

References: CFTC Rule(s) §45.4(b), 45.4(b)(1), 45.4(b)(2), 45.4(b)(2)(i), 45.4(b)(2)(ii), and 

45.4(b)(2)(iii).

5.2.2 Life-cycle event data reporting

5.2.3 Reporting Counterparty is a SD, MSP, or DCO

If the Reporting Counterparty is a SD, MSP, or DCO, the Reporting Counterparty shall report lifecycle event data electronically to KOR SDR per the KOR SDR Technical Specifications not later 

than the end of the next Business Day following the day that any life-cycle event occurred, with 

the sole exception that life-cycle event data relating to a corporate event of the non-Reporting 

Counterparty shall be reported not later than the end of the second Business Day following the day 

that such corporate event occurred.

References: CFTC Rule(s) §45.4(c)(1)(i).

5.2.4 Reporting Counterparty is a non-SD/MSP/DCO

If the Reporting Counterparty is a non-SD/MSP/DCO counterparty, the Reporting Counterparty

shall report life-cycle event data electronically to KOR SDR per the KOR SDR Technical 

Specifications not later than the end of the second Business Day following the day that any lifecycle event occurred.

References: CFTC Rule(s) §45.4(c)(1)(ii).

5.2.5 Valuation, margin, and collateral data reporting

If the Reporting Counterparty is a SD, MSP, or DCO, swap valuation data shall be reported 

electronically to KOR SDR per the KOR SDR Technical Specifications each Business Day.

If the Reporting Counterparty is a SD or MSP, collateral data shall be reported electronically to 

KOR SDR per the KOR SDR Technical Specifications each Business Day.

10 Per US Federal Holidays and Eastern Prevailing Time 
KOR SDR RULEBOOK 42

KOR SDR shall provide the Commission and the Reporting Counterparty11, or their Delegated 

Reporter with a daily report of all open swaps reported two calendar days prior or earlier that did 

not have valuation data reported the previous Business Day. The same report will be provided for 

collateral data. It is the duty of the Reporting Counterparty, or their third-party representative to 

review these reports and identify any systematic issues in reporting that need to be resolved and 

make necessary updates as soon as practicable.

Valuation and collateral data are only recorded as reported when the message has passed all KOR 

SDR validations. Business Days means the twenty-four-hour day, on all days except Saturdays, 

Sundays and legal holidays, in the location of the reporting party or registered entity reporting data 

for the swap. For Reporting Counterparties, the US Federal Holiday calendar and Eastern time is 

used unless the Client that is the Reporting Counterparty provided a different calendar, in which 

their local calendar and time zone are used. 

References: CFTC Rule(s) §45.4(c)(2)(i) and 45.4(c)(2)(ii).

5.3 The determination of which counterparty is the Reporting 

Counterparty for each swap 

The determination of which counterparty is the Reporting Counterparty for each swap shall be 

made as provided:

a. If only one counterparty is a SD, the SD shall be the Reporting Counterparty.

b. If neither counterparty is a SD, and only one counterparty is a MSP, the MSP shall be the Reporting 

Counterparty.

c. If both counterparties are non-SD/MSP/DCO counterparties, and only one counterparty is a 

financial entity as defined in CEA section 2(h)(7)(C), the counterparty that is a financial entity shall 

be the Reporting Counterparty.

d. If both counterparties are SDs, or both counterparties are MSPs, or both counterparties are nonSD/MSP/DCO counterparties that are financial entities as defined in CEA section 2(h)(7)(C), or 

both counterparties are non-SD/MSP/DCO counterparties and neither counterparty is a financial 

entity as defined in CEA section 2(h)(7)(C):

i. For a swap executed on or pursuant to the rules of a SEF or DCM, the counterparties 

shall agree which counterparty shall be the Reporting Counterparty.

ii. For an Off-Facility Swap, the counterparties shall agree as one term of their swap 

which counterparty shall be the Reporting Counterparty.

11 Not applicable to non-SD/MSP/DCO Clients.
KOR SDR RULEBOOK 43

e. Notwithstanding the provisions of (a) through (d) of this section, if both counterparties to a swap 

are non-SD/MSP/DCO counterparties and only one counterparty is a U.S. person, that 

counterparty shall be the Reporting Counterparty.

f. Notwithstanding the provisions of paragraphs (a) through (e) of this section, if neither 

counterparty to a swap is a U.S. person, but the swap is executed on or pursuant to the rules of a 

SEF or DCM or otherwise executed in the United States, or is cleared by a DCO:

g. For such a swap executed on or pursuant to the rules of a SEF or DCM, the counterparties shall 

agree which counterparty shall be the Reporting Counterparty.

h. For an Off-Facility Swap, the counterparties shall agree as one term of their swap which 

counterparty shall be the Reporting Counterparty.

i. If a Reporting Counterparty selected pursuant to paragraphs (a) through (f) of this section ceases 

to be a counterparty to a swap due to an assignment or Novation, the Reporting Counterparty for 

reporting of required swap continuation data following the assignment or Novation shall be 

selected from the two current counterparties as provided in paragraphs (g)(i) through (iv) of this 

section.

j. If only one counterparty is a SD, the SD shall be the Reporting Counterparty and shall fulfill all 

counterparty reporting obligations.

k. If neither counterparty is a SD, and only one counterparty is a MSP, the MSP shall be the Reporting 

Counterparty and shall fulfill all counterparty reporting obligations.

iii. If both counterparties are non-SD/MSP/DCO counterparties, and only one 

counterparty is a U.S. person, that counterparty shall be the Reporting Counterparty

and shall fulfill all counterparty reporting obligations.

iv. In all other cases, the counterparty that replaced the previous Reporting 

Counterparty by reason of the assignment or Novation shall be the Reporting 

Counterparty, unless otherwise agreed by the counterparties.

l. For all swaps executed on or pursuant to the rules of a SEF or DCM, the rules of the SEF or DCM

must require each swap counterparty to provide sufficient information to the SEF or DCM to 

enable the SEF or DCM to report all required swap creation data as provided in 45.8.

m. For all swaps executed on or pursuant to the rules of a SEF or DCM, the rules of the SEF or DCM

must require each swap counterparty to provide sufficient information to the SEF or DCM to 

enable the SEF or DCM to report all required swap creation data.

n. Notwithstanding the provisions of paragraphs (a) through (h) of this section, if the swap is a 

clearing swap, the DCO that is a counterparty to such swap shall be the Reporting Counterparty

and shall fulfill all Reporting Counterparty obligations for such swap.

o. As no information regarding the designation of the counterparties (i.e., SD, MSP, or US Person) is 

included on the swap message per the KOR SDR Technical Specifications, KOR SDR shall not 

validate which party should be designated the reporting party.
KOR SDR RULEBOOK 44

References: CFTC Rule(s) §45.8, §45.8(a), §45.8(b), 45.8(c), 45.8(d), 45.8(d)(1), 45.8(d)(2), 

45.8(e), 45.8(f), 45.8(f)(1), 45.8(f)(2), 45.8(g), 45.8(g)(1), 45.8(g)(2), 45.8(g)(3), 45.8(g)(4), 

45.8(g)(5), 45.8(h), and 45.8(i).

5.4 Third-party facilitation of data reporting

Registered entities and Reporting Counterparties required to report required swap creation data or 

required swap continuation data, while remaining fully responsible for reporting, may contract 

with Delegated Reporters to facilitate reporting.

References: CFTC Rule(s) §45.9.

5.5 Reporting to a single Swap Data Repository

All Swap Transaction and Pricing Data and Swap Data for a given swap shall be reported to a 

single Swap Data Repository, which shall be the Swap Data Repository to which the first report 

of such data is made, unless the Reporting Counterparty changes the Swap Data Repository.

References: CFTC Rule(s) §45.10.

5.5.1 Swaps executed on or pursuant to the rules of a SEF or DCM

To ensure that all Swap Transaction and Pricing Data, and Swap Data for a swap executed on or 

pursuant to the rules of a SEF or DCM is reported to a single Swap Data Repository:

a. The SEF or DCM shall report all Swap Transaction and Pricing Data and required swap creation 

data for a swap to a single Swap Data Repository. ASATP after execution of the swap, the SEF

or DCM shall transmit to both counterparties to the swap, and to the DCO, if any, that will 

clear the swap, the identity of the Swap Data Repository to which such data is reported.

b. Thereafter, all Swap Transaction and Pricing Data, required swap creation data, and required 

swap continuation data for the swap shall be reported to that same Swap Data Repository, 

unless the Reporting Counterparty changes the designated Swap Data Repository.

References: CFTC Rule(s) §45.10(a), 45.10(a)(1), and 45.10(a)(2).

5.5.2 Off-Facility Swaps that are not clearing swaps

To ensure that all Swap Transaction and Pricing Data and Swap Data for an Off-Facility Swap that 

is not a clearing swap is reported to a single Swap Data Repository:

a. 56=The Reporting Counterparty shall report all Swap Transaction and Pricing Data and required 

swap creation data to a single Swap Data Repository. ASATP after execution, the Reporting 

Counterparty shall transmit to the other counterparty to the swap, and to the DCO, if any, that will 

clear the swap, the identity of the Swap Data Repository to which such data is reported.

b. Thereafter, all Swap Transaction and Pricing Data, required swap creation data, and required swap 

continuation data for the swap shall be reported to the same Swap Data Repository, unless the 
KOR SDR RULEBOOK 45

Reporting Counterparty changes the Swap Data Repository to which such data is changed to another 

SDR.

References: CFTC Rule(s) §45.10(b), 45.10(b)(1), and 45.10(b)(2).

5.5.3 Clearing swaps

To ensure that all Swap Transaction and Pricing Data and Swap Data for a given clearing swap, 

including clearing swaps that replace a particular original swap or that are created upon execution 

of the same transaction and that do not replace an original swap, is reported to a single Swap Data

Repository:

a. The DCO that is a counterparty to such clearing swap shall report all Swap Transaction and 

Pricing Data and required swap creation data for that clearing swap to a single Swap Data

Repository. ASATP after acceptance of an original swap for clearing, or execution of a clearing 

swap that does not replace an original swap, the DCO shall transmit to the counterparty to 

each clearing swap the identity of the Swap Data Repository to which such data is reported.

b. Thereafter, all Swap Transaction and Pricing Data, required swap creation data and required 

swap continuation data for that clearing swap shall be reported by the DCO to the same Swap 

Data Repository to which Swap Data has been reported, unless the Reporting Counterparty

changes the Swap Data Repository to which such data is reported.

c. For clearing swaps that replace a particular original swap, and for equal and opposite clearing 

swaps that are created upon execution of the same transaction and that do not replace an 

original swap, the DCO shall report all Swap Transaction and Pricing Data, required swap 

creation data, and required swap continuation data for such clearing swaps to a single Swap 

Data Repository.

References: CFTC Rule(s) 45.10(c), 45.10(c)(1), 45.10(c)(2), and 45.10(c)(3).

5.6 Change of Swap Data Repository

A Reporting Counterparty may change the Swap Data Repository to which Swap Transaction and 

Pricing Data and Swap Data is reported.

References: CFTC Rule(s) §45.10(d).

5.6.1 SDR Porting: Notifications

At least five Business Days prior to changing the Swap Data Repository to which the Reporting 

Counterparty reports Swap Transaction and Pricing Data and Swap Data for a swap, the Reporting 

Counterparty shall provide notice of such change to the other counterparty to the swap, the Swap 

Data Repository to which Swap Transaction and Pricing Data and Swap Data is currently reported, 

and the Swap Data Repository to which Swap Transaction and Pricing Data and Swap Data will 

be reported going forward. Such notification shall include the unique transaction identifier of the 
KOR SDR RULEBOOK 46

swap and the date on which the Reporting Counterparty will begin reporting such Swap 

Transaction and Pricing Data and Swap Data to a different Swap Data Repository.

References: CFTC Rule(s) §45.10(d)(1).

5.6.2 KOR SDR Porting: Procedure

After providing the required notifications, the Reporting Counterparty shall follow KOR SDR’s 

procedure as defined in the KOR SDR Rulebook, Technical Specifications, and User Guide to 

complete the change of Swap Data Repository.

The Reporting Counterparty shall report the change of Swap Data Repository to the Swap Data

Repository to which the Reporting Counterparty is currently reporting Swap Transaction and 

Pricing Data and Swap Data as a life-cycle event.

On the same day that the Reporting Counterparty reports required swap continuation data, the 

Reporting Counterparty shall also report the change of Swap Data Repository to the Swap Data

Repository to which Swap Transaction and Pricing Data and Swap Data will be reported going 

forward as a life-cycle event for such swap. The required swap continuation data report shall 

identify the swap using the same unique transaction identifier used to identify the swap at the 

previous Swap Data Repository.

Thereafter, all Swap Transaction and Pricing Data, required swap creation data, and required swap 

continuation data for the swap shall be reported to the same Swap Data Repository, unless the 

Reporting Counterparty for the swap makes another change to the Swap Data Repository to which 

such data is reported.

References: CFTC Rule(s) §45.10(d)(2), 45.10(d)(2)(i), 45.10(d)(2)(ii), and 45.10(d)(2)(iii).

5.6.3 Changing Swap Data Repository to KOR SDR

In order to port in swaps to KOR SDR:

a. At least five Business Days prior to porting into KOR SDR, the Client must provide notification 

in writing to KOR SDR of their intention to port in (support@korfinancial.com). Such 

notification shall include: 

i. The UTIs of the swaps porting;
KOR SDR RULEBOOK 47

ii. Planned porting date;12 and

iii. Indication if the Client is porting all swaps or only open swaps.

b. Execute of the KOR Universal Services Agreement and applicable Addendums. 

c. Administrative User must set up all User access.

d. Client must complete testing including the porting in of applicable swaps in a non-production 

environment.

e. Client must complete all steps and port out trades from their current SDR on the same date 

trades are ported into KOR SDR.13

f. All ported in swaps shall be reported with [Action type] = ‘NEWT’ and [Event type] = ‘PORT’. 

Note that the transaction is reported using the same UTI and same execution timestamp.

i. KOR only accept open swaps for porting in by a Client.

ii. All swaps must be the current KOR SDR Technical Standards. 

iii. All swaps shall be reported in their current state.

5.6.4 Changing Swap Data Repository out of KOR SDR

In order to port out swaps from KOR SDR:

a. At least five Business Days prior to porting out of KOR SDR, the Client must provide notification 

in writing to KOR SDR of their intention to port out (support@korfinancial.com). Such 

notification shall include:

i. The UTIs of the swaps porting;

ii. Planned porting date;

14 and

iii. Indication if the Client is porting all swaps or only open swaps. 

b. Prior to the date the Client is porting out data, the Client must test their port out messages in 

a KOR SDR non-production environment. 

c. For all swaps that are being ported out, the Reporting Counterparty submits a continuation 

data report that includes the field values: [Action type] = ‘PRTO’, [Event type] = ‘PORT’ and 

12 KOR SDR has the right to request the Client select another date if they need KOR Client support if KOR has already 

committed support to other activities (e.g., other porting Clients, technical release, systems testing, or holiday 

schedules).

13 A Client may elect to start submitting new swaps to KOR SDR prior to porting in all open swaps.

14 KOR SDR has the right to request the Client select another date if they need KOR Client support if KOR has already 

committed support to other activities (e.g., other porting Clients, technical release, systems testing, or holiday 

schedules).
KOR SDR RULEBOOK 48

[New SDR identifier] = ‘LEISDR2’. This three-value combination is an indication that this 

transaction (UTI) will no longer be reported, effectively removing the active transaction from 

KOR SDR.

d. The Client must verify all open swaps have been ported out and all open errors resolved.

6. Client data reporting standards regarding CFTC Rule Part 45

6.1 Part 45: Data reported to Swap Data Repositories

In reporting required swap creation data and required swap continuation data to KOR SDR, each 

Reporting Counterparty, SEF, DCM, and DCO shall report the Swap Data elements in part 45 

appendix 1 in the form and manner provided in the technical specifications published by the 

Commission. In addition, the submitting Client shall report any additional fields as prescribed by 

KOR SDR in the form and manner provided in the KOR Technical Specifications. 

In reporting required swap creation data and required swap continuation data to KOR SDR, each 

Reporting Counterparty, SEF, DCM, and DCO making such report shall satisfy the Swap Data 

Validation Procedures of KOR SDR.

In reporting Swap Data to KOR SDR, each Reporting Counterparty, SEF, DCM, and DCO shall 

use the facilities, methods, or data standards provided or required by KOR SDR.

The fields, validations, and methods are published in the KOR SDR Technical Specifications.

References: CFTC Rule(s) §45.13(a)(1), 45.13(a)(2), and 45.13(a)(3).

6.2 Part 45: Data Validation Acceptance Message

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. Where technologically practicable, KOR SDR 
KOR SDR RULEBOOK 49

will process all validations for the submission and return all applicable validations errors to the 

Client.

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), 49.10(c)(2), 45.13(b)(2), and 49.10(c)(3).

7. Part 45: Correcting errors in Swap Data and verification of Swap 

Data accuracy

7.1 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).

7.1.1 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.
KOR SDR RULEBOOK 50

References: CFTC Rule(s) §45.14(a)(1)(i).

7.1.2 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 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

(support@korfinancial.com) as soon as practicable but not later than the Business Day following 

the discovery. 

References: CFTC Rule(s) §45.14(a)(1)(ii).

7.1.3 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).

7.1.4 Part 45: Non-Reporting Counterparties

Any non-Reporting Counterparty that by any means becomes aware of any error in the Swap 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).

7.1.5 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 
KOR SDR RULEBOOK 51

requirements to correct errors.If a Client attempts to submit a swap that is past the retention period, 

the message shall fail KOR SDR validations. 

References: CFTC Rule(s) §45.14(a)(3).

7.2 Part 45: Verification that Swap Data is complete and accurate

KOR Swap Data Repository shall verify the accuracy and completeness of Swap Data that it 

receives from Clients.

Each Reporting Counterparty shall verify that there are no errors in the Swap Data for all open 

swaps that the Reporting Counterparty reported, or was required to report, to a Swap Data

Repository.

KOR SDR shall provide Clients with a positive acknowledgement (“ACK”) or negative 

acknowledgement (“NACK”) for all messages submitted to KOR SDR including a detailed error 

message for all NACKS that identifies what validations failed. It is the duty of the Client to monitor 

and correct these errors. Clients will have access to a report of all open error messages that shall

be reviewed and resolved ASATP. If a message was submitted in error and failed validations, the 

Client must correct and resubmit the message until it passes all validations per the KOR Technical 

Specifications.

References: CFTC Rule(s) §45.14(b) and 49.11(a).

7.2.1 Part 45: Method of verification

KOR SDR shall provide an open swaps report to all Clients and their Delegated Reporters or 

Authorized Access Clients when applicable. This report will provide the User with a view of the 

most recent validated and accepted open swaps for which they have access for each field that was 

required to be reported per Part 45 of CFTC rules where the Client is the Reporting Counterparty. 

This information will allow Clients to successfully perform Swap Data verification required under 

CFTC Rule § 45.14

Each Reporting Counterparty shall utilize this mechanism for verification. The Client must

compare all Swap Data in the open swaps verification report with all Swap Data contained in the 

Reporting Counterparty's internal books and records for each swap, to verify that there are no 

errors in the relevant Swap Data maintained by KOR SDR. In the event the Client identifies an 

error, including but not limited to: (1) an invalid field value, (2) a missing field value, (3) an 

incorrect UTI, (4) a swap that is not reported, (5) a swap that is closed that should be open, (6) a 

swap that is open that should be closed, (7) a swap that is reported that should not have been 

reported, or (8) a swap who’s counterparty’s identifier should be updated; then the Client is 

required to resubmit and correct the UTI(s). After submitting all of the corrections, the Client is 
KOR SDR RULEBOOK 52

required to re-execute the open swaps verification report and verify the identified swaps are now 

correct. This process shall not be re-executed after each individual swap is corrected, but instead 

after the Client believes all incorrect swaps have been corrected. This process shall be repeated 

until the Client has verified that the open swaps report is in line with their internal books and 

records. 

Notwithstanding the foregoing, a Reporting Counterparty is not required to verify the accuracy 

and completeness of any Swap Data to which the Reporting Counterparty is not permitted access 

under the Act or Commission regulations, including, but not limited to, CFTC Rule §49.17. KOR 

SDR is required to adhere to all applicable confidentiality requirements of the CEA and Part 49 of 

CFTC rules, including, but not limited to, CFTC Rule §49.17. The Swap Data accessible to any 

Reporting Counterparty or their Delegated Reporter or Authorized Access Client shall not include 

any Swap Data that the relevant Reporting Counterparty is prohibited to access under any 

Commission regulation.

In particular, under CFTC Rule 49.17(f), KOR may not permit either counterparty, third party 

reporter, agent or clearing member to access the opposing counterparty LEI or counterparty 

clearing member for cleared swaps executed anonymously on a SEF or DCM. 

As the Client does not provide feedback to KOR SDR that they have executed or completed the 

verification process, KOR SDR shall not produce any reports as to the Reporting Counterparty’s 

compliance with CFTC Rule 45.14.

References: CFTC Rule(s) §45.14(b)(1), 45.14(b)(2), 49.11(b)(1), 49.11(b)(2), and 49.11(b)(3).

7.2.2 Part 45: Verification policies and procedures

In performing verification as required, each Reporting Counterparty shall conform to KOR SDR 

Rule: Part 45: Method of verification. If a Reporting Counterparty utilizes a Delegated Reporter 

or Authorized Access Client to perform verification, the Reporting Counterparty shall require the 

Delegated Reporter or Authorized Access Client to conform to the same policies and procedures 

while performing verification on behalf of the Reporting Counterparty.

References: CFTC Rule(s) §45.14(b)(2), 49.11(c)(1), and 49.11(c)(2).

7.2.3 Part 45: Correcting errors

Any and all errors discovered during the verification process shall be corrected.

References: CFTC Rule(s) §45.14(b)(3).

7.2.4 Part 45: Frequency

Each Reporting Counterparty shall perform verification at a minimum:
KOR SDR RULEBOOK 53

a. If the Reporting Counterparty is a SD, MSP, or DCO, once every thirty calendar days; or

b. If the Reporting Counterparty is a non-SD/MSP/DCO, once every calendar quarter, provided 

that there are at least two calendar months between verifications.

KOR SDR shall allow each Reporting Counterparty that is a Client to utilize the verification with 

at least sufficient frequency to allow them to perform the Swap Data verification required under 

CFTC Rule §45.14. If usage becomes excessive, KOR SDR has the right to review the Client’s 

data verification procedures and/or limit access as is deemed appropriate. 

References: CFTC Rule(s) §45.14(b)(4) 45.14(b)(4)(i), 45.14(b)(4). 45.14(b)(4)(ii), and 

49.11(b)(4).

7.2.5 Part 45: Delegated Reporters and Authorized Access Clients

Where a Reporting Client has notified KOR SDR and systematically granted access to a Delegated 

Reporter or Authorized Access Client, the Delegated Reporter or Authorized Access Client will 

be provided with the same data access as Reporting Counterparty. The access for the Delegated 

Reporter or Authorized Access Client shall be in addition to the access for the Reporting 

Counterparty. The Client is responsible for granting and revoking access to the Delegated Reporter 

or Authorized Access Client when appropriate. 

Reference the User Guide for instructions detailing how each Client can grant and revoke access 

regarding a Delegated Reporter or Authorized Access Client.

References: CFTC Rule(s) §49.11(b)(5).

7.2.6 Part 45: Verification log

Each Reporting Counterparty shall keep a log of each verification that it performs. For each 

verification, the log shall include all errors discovered during the verification, and the corrections 

performed. This requirement is in addition to any other applicable Reporting Counterparty

recordkeeping requirement.

References: CFTC Rule(s) §45.14(b)(5).

7.2.7 Part 45: Error defined

For the purposes of data verification, there is an error when Swap Data is not completely and 

accurately reported. This includes, but is not limited to, the following circumstances:

a. Any of the Swap Data for a swap reported to KOR SDR is incorrect or any of the Swap Data

that is maintained by KOR SDR differs from any of the relevant Swap Data contained in 

the books and records of a party to the swap.
KOR SDR RULEBOOK 54

b. Any of the Swap Data for a swap that is required to be reported to a Swap Data Repository

or to be maintained by a Swap Data Repository is not reported to a Swap Data Repository

or is not maintained by a Swap Data Repository as required by this part.

c. None of the Swap Data for a swap that is required to be reported to a Swap Data

Repository or to be maintained by a Swap Data Repository is reported to KOR SDR or is 

maintained by KOR SDR.

d. Any of the Swap Data for a swap that is no longer an Open Swap is maintained by KOR 

SDR as if the swap is still an open swap.

References: CFTC Rule(s) §45.14(c)(1), 45.14(c)(1)(i), 45.14(c)(1)(ii), 45.14(c)(1)(III), and 

45.14(c)(1)(iv).

7.2.8 Part 45: Presumption

There is a presumption that an error exists if the Swap Data that is maintained and disseminated 

by KOR SDR for a swap is not complete and accurate. This includes, but is not limited to, the 

Swap Data that KOR SDR makes available to the Reporting Counterparty for verification.

References: CFTC Rule(s) §45.14(c)(2).

8. KOR SDR duties and obligations regarding CFTC Rule Part 45 data

8.1 Accept SDR data

KOR SDR accepts, validates, and promptly records all SDR Data and other required information 

for all swaps in its approved Asset Classes. KOR SDR has been approved to offer services in the 

following Asset Classes: Interest rate, credit, foreign exchange, equity and other commodity. KOR 

provides access to the KOR SDR Services to all Market Participants for swaps in the 

aforementioned Asset Classes on a non-discriminatory basis.

As a general matter, entities reporting SDR Data to KOR SDR are required to report all fields

required by Part 43 and Part 45 of the Commission regulations, as applicable, and in accordance

with the CFTC Technical Specification15 in addition to any additional fields prescribed by KOR 

and defined in the KOR SDR Technical Specifications. 

15 The CFTC Technical Specification is available on the CFTC’s website. As of this date, the latest version of the CFTC

Technical Specification is available at

https://www.cftc.gov/media/4891/DMO_Part43_45TechnicalSpecification091720/download.
KOR SDR RULEBOOK 55

KOR SDR has established reliable and secure technological protocols that provide for the 

electronic connectivity between KOR SDR and its Clients. Such protocols provide for the receipt 

of SDR Data and can be found in the SDR User Guide and KOR Technical Specifications.

References: CFTC Rule(s) §49.10(a)(1), 49.10(b), and 49.10(a)(2).

8.2 Validate SDR D

KOR is responsible for validating SDR Data ASATP after such data is accepted in accordance 

with the validation conditions set forth by the Commission in CFTC Rule 49.10(c) and the KOR 

SDR Technical Specifications. In addition, and at the discretion of KOR, KOR may adopt 

additional validation requirements as KOR deems necessary to meet its regulatory and compliance 

obligations as an SDR.

More specifically, KOR is responsible for validating each SDR Data report submitted to KOR

SDR and notifying the Client submitting the report whether the report satisfied KOR’s Data 

Validation Procedures ASATP after accepting the SDR Data report.

If the submitted SDR Data contains one or more data validation errors, KOR is responsible for 

distributing a Data Validation Error Message to the Client that submitted such SDR Data ASATP

after acceptance of such data. Each Data Validation Error Message must indicate which specific 

data validation error(s) was identified in the SDR data. Where technologically practicable, KOR 

SDR will process all validations for the submission and return all applicable validations errors to 

the Client.

KOR SDR will not accept a joint submission of Swap Transaction and Pricing Data under Part 43 

and Swap Data under Part 45 of CFTC rules. Instead, KOR will require Clients to submit Part 43 

and 45 messages independently but provide the required information to tie the two to the same 

UTI.

References: CFTC Rule(s) §49.10(c), 49.10(c)(1), 45.13(b), 43.3(f)(1), 49.10(c)(2), and 

49.10(c)(3).

8.3 Prevent invalidation or modification of data

KOR SDR has established systems and User access restrictions reasonably designed to prevent 

any provision in a valid swap from being invalidated or modified through its verification or 

recording process. Client Agreements contain language intended to prevent any such invalidation 

or modification.

References: CFTC Rule(s) §49.10(d).

8.4 Error corrections
KOR SDR RULEBOOK 56

KOR has implemented systemic measures to help ensure that all Client submissions are accurately 

reflected in KOR SDR. The onus lies on the Client to flag all submissions with the applicable 

Action and Event type. Amended records are saved as a new version while keeping the older 

version(s) for tracking changes that occurred on the trade. KOR employs active monitoring and 

alerting of system component general health and specific processes to ensure the continuous 

operation of data processing. Specifically:

a. All message processing errors and exceptions at the message level are logged and monitored 

24/7 by the monitoring system.

b. Monitoring and alerting if the database/application server and other processes are down or 

unreachable.

KOR SDR shall accept error corrections for SDR Data. Error corrections include corrections to 

errors and omissions in SDR Data previously reported to KOR SDR pursuant to CFTC Regulations 

Part 43, 45, or 46, as well as omissions in reporting SDR Data for swaps that were not previously 

reported to a Swap Data Repository as required under CFTC Regulations Part 43, 45, or 46. The 

requirement to accept error corrections applies for all swaps, regardless of the state of the swap 

that is the subject of the SDR Data. This includes swaps that have terminated, matured, or are 

otherwise no longer considered to be open swaps, provided that the record retention period under 

§ 49.12(b)(2) has not expired as of the time the error correction is reported.

KOR SDR shall record the corrections, as soon as technologically practicable after KOR SDR 

accepts the error correction. Where a correction is made to a Part 43 message, KOR to disseminate 

the corrected data as soon as technologically practicable after KOR records the corrected data.

All error corrections are recorded in accordance with KOR’s recordkeeping policies and 

procedures. KOR SDR disseminates corrected data to the public and the CFTC, as applicable, in 

accordance with its dissemination policies and procedures.

References CFTC Rule §49.10(e)(1), 49.10(e)(2), 49.10(e)(3), and 49.10(e)(4).

8.5 KOR SDR Recordkeeping requirements

KOR SDR shall maintain:

a. Full, complete, and systematic records, together with all pertinent data and memoranda, of all 

activities relating to the business of KOR SDR, including, but not limited to, all SDR Information

and all SDR Data that is reported to KOR SDR pursuant to Commission regulations.

b. A copy of the written policies and procedures, including the code of ethics and conflicts of interest 

policies adopted in furtherance of compliance with the CEA and Commission regulations;

c. Copies of all materials, including written reports provided to the Board of Directors or senior 

officer in connection with the review of the annual compliance report under CFTC Rule 
KOR SDR RULEBOOK 57

§49.22(f)(1) and the board minutes or similar written record of such review, that record the 

submission of the annual compliance report to the Board of Directors or senior officer; and

d. Any records relevant to KOR's annual compliance report, including, but not limited to, work 

papers and other documents that form the basis of the report, and memoranda, correspondence, 

other documents, and records that are:

i. Created, sent, or received in connection with the annual compliance report and

ii. Contain conclusions, opinions, analyses, or financial data related to the annual 

compliance report.

References: CFTC Rule(s) §49.22(g)(1), 49.12(a), 49.22(g)(1)(i), 49.22(g)(1)(ii), 49.22(g)(1)(iii), 

49.22(g)(1)(iii)(A), and 49.22(g)(1)(iii)(B).

8.5.1 Maintenance of records

KOR SDR shall maintain all SDR Data and timestamps reported to or created by KOR Swap Data

Repository pursuant to this chapter, and all messages related to such reporting, throughout the 

existence of the swap that is the subject of the SDR Data and for five years following final 

termination of the swap16, during which time the records shall be readily accessible by KOR SDR

and available to the Commission via real-time electronic access, and for a period of at least ten 

additional years in archival storage from which such records are retrievable by KOR SDR within 

three Business Days.

References: CFTC Rule(s) §49.12(b)(1) and 49.12(b)(2).

8.5.2 Records of data errors and omissions

KOR SDR shall create and maintain an accurate record of all reported SDR Data that fails to satisfy 

KOR SDR’s Data Validation Procedures including, but not limited to, all SDR Data reported to 

KOR SDR that fails to satisfy the data validation procedures, all data validation errors, and all 

related messages and timestamps. KOR SDR shall make these records available to the Commission 

on request.

KOR SDR shall create and maintain an accurate record of all SDR Data errors and omissions 

reported to KOR SDR and all corrections disseminated by KOR SDR pursuant to Parts 43, 45, and 

46 of the Commission regulations. KOR SDR shall make these records available to the 

Commission on request.

References: CFTC Rule(s) §49.12(c), 49.12(c)(1) and 49.12(c)(2).

16 In the case the swap had an event that terminated the swap before its original end date, the calculation shall be based on the actual termination date of the swap, not the 

original.
KOR SDR RULEBOOK 58

8.6 Positions

KOR SDR shall calculate Position views of data. These views will include the gross and net 

notional amount, by leg, for all open swaps. For swaps executed in a notional other than USD, the 

notional in USD must be submitted for KOR to aggregate open swaps in a single currency, USD. 

These aggregated views are available by Reporting Counterparty LEI using one or more of the 

following attributes:

a. Asset Class

b. UPI

c. Underlying instrument

d. Counterparty

References: CFTC Rule(s) §49.12(e) and 49.2(a).

8.7 Monitoring, screening, and analyzing Swap Data

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 objectives17 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. 

References: CFTC Rule(s) §49.13(a) and 49.13(b).

8.8 Reporting Clearing Exemptions/Exceptions

17 KOR SDR is not a Self-Regulatory Organization (“SRO”).
KOR SDR RULEBOOK 59

Market Participants have the obligation to report clearing exemption/exception elections.

KOR SDR shall provide Clients with a User Interface to submit and review Clearing 

Exemption/Elections as defined in CFTC Regulation §50.50(b) and §50.52(c) annually per CFTC 

Regulation §50.52(d). When a swap is mandatory clearable, but not cleared, then the parties that 

have elected a clearing exemption/election are required to indicate which parties are electing what 

exemption per the KOR Technical Specifications. 

8.9 Monitoring, screening, and analyzing end user clearing exemption 

claims 

Market Participants have the obligation to report clearing exemption/exception elections.

Clients and the Commission will have the ability to query and filter swaps based on the reported 

fields “Clearing exceptions and exemptions - Counterparty 1" and “Clearing exceptions and 

exemptions - Counterparty 2” per the list of values provided in the KOR SDR Technical 

Specification. These fields must be populated on all trades which are not cleared and are mandatory 

clearable.

KOR SDR shall provide Clients with a User Interface to submit and review Clearing 

Exemption/Elections as defined in CFTC Regulation §50.50(b) and §50.52(c) annually per CFTC 

Regulation §50.52(d). The Commission will have access to electronically view the submitted 

forms.

KOR SDR systems will be able to also identify, aggregate, and sort swaps exempt from clearing.

References: CFTC Rule(s) §49.14.

9. Client duties and obligations regarding CFTC Rule Part 43 data

9.1 Part 43: Responsibilities to report Swap Transaction and Pricing Data

in real-time

The Reporting Counterparty, SEF, or DCM responsible for reporting a swap shall report the 

Publicly Reportable Swap Transaction to a Swap Data Repository ASATP after execution, subject 

to CFTC Rule(s) 43.3(a)(2) through (6). Such reporting shall be done in the manner set forth in 

per the KOR SDR Technical Specifications.

References: CFTC Rule(s) §43.3(a)(1).

9.1.1 Part 43: Swaps executed on or pursuant to the rules of a SEF or DCM
KOR SDR RULEBOOK 60

For each swap executed on or pursuant to the rules of a SEF or DCM, the SEF or DCM shall report 

Swap Transaction and Pricing Data to a Swap Data Repository ASATP after execution.

KOR SDR shall provide the Commission and the SEF, DCM, or their Delegated Reporter with a 

daily report of all swaps reported for Part 43 that day that did not meet the prescribed timeline. For 

swaps executed On Facility, KOR SDR shall consider Part 43 messages submitted later than 15 

minutes after the Execution Timestamp to be late. The report shall contain the necessary 

information to identify the swap and the difference in the execution to submitted time. It is the 

duty of the SEF, DCM, or their Delegated Reporter representative to review these reports and 

identify any systematic issues in reporting that need to be resolved and make necessary updates as 

soon as practicable. 

Late reporting is based on the KOR SDR calculated Submission Timestamp vs. the Execution 

Timestamp for the first time KOR SDR receives a Part 43 message for a UTI. The Submission 

Timestamp is calculated based on when the swap is first received by KOR SDR and has passed all 

KOR SDR validations. 

References: CFTC Rule §43.3(a)(2).

9.1.2 Part 43: Off-Facility Swaps

Except as otherwise provided in (a) through (6) of this section, a Reporting Counterparty shall 

report all Publicly Reportable Swap Transactions that are Off-Facility Swaps to a Swap Data

Repository for the appropriate Asset Class in accordance with the rules set forth in this part ASATP

after execution. Unless otherwise agreed to by the parties prior to execution, the following shall 

be the Reporting Counterparty for a Publicly Reportable Swap Transaction that is an Off-Facility 

Swap:

a. If only one party is a SD or MSP, then the SD or MSP shall be the Reporting Counterparty;

b. If one party is a SD and the other party is a MSP, then the SD shall be the Reporting 

Counterparty;

c. If both parties are SDs, then the SDs shall designate which party shall be the Reporting 

Counterparty prior to execution of such swap;

d. If both parties are MSPs, then the MSPs shall designate which party shall be the Reporting 

Counterparty prior to execution of such swap; and

e. If neither party is a SD or a MSP, then the parties shall designate which party shall be the 

Reporting Counterparty prior to execution of such swap.

References: CFTC Rule(s) §43.3(a)(3), 43.3(a)(3)(i), 43.3(a)(3)(ii), 43.3(a)(3)(iii), 43.3(a)(3)(iv), 

and 43.3(a)(3)(v).

9.1.3 Part 43: Post-priced swaps
KOR SDR RULEBOOK 61

9.1.4 Part 43: Post-priced swaps reporting delays

The Reporting Counterparty may delay reporting a Post-Priced Swap to a Swap Data Repository

until the earlier of the price being determined and 11:59:59 p.m. eastern time on the execution 

date. If the price of a Publicly Reportable Swap Transaction that is a Post-Priced Swap is not 

determined by 11:59:59 p.m. eastern time on the execution date, the Reporting Counterparty shall 

report to a Swap Data Repository by 11:59:59 p.m. eastern time on the execution date all Swap 

Transaction and Pricing Data for such Post-Priced Swap other than the price and any other thenundetermined Swap Transaction and Pricing Data and shall report each such item of previously 

undetermined Swap Transaction and Pricing Data ASATP after such item is determined. Where 

the undetermined field is required on submission per the KOR Technical Specifications, the 

message will fail. 

References: CFTC Rule(s) §43.3(a)(4)(i).

9.1.5 Part 43: Other economic terms

The Post-Priced Swap reporting delay does not apply to Publicly Reportable Swap Transactions

with respect to which the price is known at execution, but one or more other economic or other 

terms are not yet known at the time of execution.

References: CFTC Rule(s) §43.3(a)(4)(ii).

9.1.6 Part 43: Clearing swaps

If a clearing swap, is a Publicly Reportable Swap Transaction, the DCO that is a party to such 

swap shall be the Reporting Counterparty and shall fulfill all Reporting Counterparty obligations 

for such swap ASATP after execution.

References: CFTC Rule(s) §43.3(a)(5).

9.1.7 Part 43: Prime Broker Swaps

A Mirror Swap is not a Publicly Reportable Swap Transaction. Execution of a Trigger Swap, shall 

be deemed to occur at the time of the Pricing Event for such Trigger Swap.

With respect to a given set of swaps, if it is unclear which is, or are the mirror swap(s) and which 

is the related Trigger Swap (including, but not limited to, situations where there is more than one 

Prime Broker counterparty within such set of swaps and situations where the Pricing Event for 

each set of swaps occurs between Prime Brokerage Agents of a common Prime Broker), or if under 

the Prime Brokerage Agency Arrangement, the Trigger Swap would occur between two Prime 

Brokers, the Prime Broker(s) shall determine which of the Prime Broker Swaps shall be treated as 

the Trigger Swap and which are mirror swaps.
KOR SDR RULEBOOK 62

Trigger Swaps shall be reported in accordance with the following:

a. Trigger Swaps executed on or pursuant to the rules of a SEF or DCM shall be reported 

pursuant to CFTC Rule 43.3 (a)(2); and

b. Off-facility Trigger Swaps shall be reported pursuant to CFTC Rule 43.3 (a)(3), except that 

if a counterparty to a Trigger Swap is a SD that is not a Prime Broker with respect to that 

Trigger Swap, then that SD counterparty shall be the Reporting Counterparty for the 

Trigger Swap.

References: CFTC Rule(s) §43.3(a)(6)(i), 43.3(a)(6)(ii), 43.3(a)(6)(iii), 43.3(a)(6)(iii)(A), and 

43.3(a)(6)(iii)(B).

9.1.8 Part 43: Third-party facilitation of data reporting

Any person required to report Swap Transaction and Pricing Data, while remaining fully 

responsible for reporting, may contract with a Delegated Reporter to facilitate reporting.

References: CFTC Rule(s) §43.3(a)(7).

9.2 Part 43: Public Dissemination of Swap Transaction and Pricing Data

by Swap Data repositories in real-time

KOR SDR shall Publicly Disseminate Swap Transaction and Pricing Data ASATP after such data 

is received from a SEF, DCM, or Reporting Counterparty, unless such Swap Transaction and 

Pricing Data is subject to a time delay described in CFTC Rule §43.5, in which case the Swap 

Transaction and Pricing Data shall be Publicly Disseminated in the manner described in CFTC 

Rule §43.5.

References: CFTC Rule(s) §43.3(b)(1).

9.2.1 Part 43: Prohibitions on disclosure of data

A SEF or DCM shall not disclose Swap Transaction and Pricing Data relating to Publicly 

Reportable Swap Transactions, prior to the Public Dissemination of such data by a Swap Data

Repository unless:

a. Such disclosure is made no earlier than the transmittal of such data to a Swap Data

Repository for Public Dissemination;

b. Such disclosure is only made to market participants on such SEF or DCM;

c. Market participants are provided advance notice of such disclosure; and

d. Any such disclosure by the SEF or DCM is non-discriminatory.
KOR SDR RULEBOOK 63

References: CFTC Rule(s) §43.3(b)(3)(i), 43.3(b)(3)(i)(A), 43.3(b)(3)(i)(B), 43.3(b)(3)(i)(C), 

43.3(b)(3)(i)(D), 43.3(b)(3)(ii), 43.3(b)(3)(ii)(A), 43.3(b)(3)(ii)(B), 43.3(b)(3)(ii)(C), and 

43.3(b)(3)(ii)(D).

10. Client data reporting standards regarding CFTC Rule Part 43

10.1 Part 43: Data reported to KOR SDR

For all transactions which require real-time reporting under Part 43 of CFTC rules, KOR SDR 

Clients submitting data are required to report all fields required by Appendix A to Part 43 of CFTC 

rules, in accordance with the KOR SDR Technical Specifications.

In reporting Swap Transaction and Pricing Data to KOR SDR, each Reporting Counterparty, SEF, 

or DCM making such report shall satisfy the Data Validation Procedures of KOR SDR.

In reporting Swap Transaction and Pricing Data, each Reporting Counterparty, SEF, or DCM shall 

use the facilities, methods, or data standards required by KOR SDR.

KOR SDR specifies its required fields and validations in the KOR SDR Technical Specification.

References: CFTC Rule(s) §43.3(d)(1), 43.3(d)(2), and 43.3(d)(3).

10.2 Part 43: Correction of errors

10.2.1 Part 43: Swap execution facilities, DCMs, and Reporting 

Counterparties

Any SEF, DCM, or Reporting Counterparty that by any means becomes aware of any error relating 

to Swap Transaction and Pricing 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 Transaction and Pricing Data to KOR SDR, or completely and accurately report Swap 

Transaction and Pricing Data for a swap that was not previously reported, as applicable. The 

requirement to correct any error applies regardless of the state of the swap that is the subject of the 

Swap Transaction and Pricing Data, including a swap that has terminated, matured, or otherwise 

is no longer considered to be an open swap. 

References: CFTC Rule(s) §43.3(e)(1).

10.2.2 Part 43: 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 
KOR SDR RULEBOOK 64

required under CFTC Rule §45.14(b) 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) §43.3(e)(1)(i).

10.2.3 Part 43: 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 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 as soon as practicable but not later 

than the Business Day following the discovery.

References: CFTC Rule(s) §43.3(e)(1)(ii).

10.2.4 Part 43: Form and manner for error correction

In order to satisfy the requirements of this section, a SEF, DCM, or Reporting Counterparty shall 

conform to the KOR SDR Technical Specifications for correction of errors.

KOR SDR will provide Client’s access to the following reports for Part 43 data where they were 

the submitting Client, or their Delegated Reporter submitted on their behalf. 

a. A report on all outstanding errors on Part 43 submissions.

b. A report on ACKs and NACKs on Part 43 submissions.

c. A daily report on the Publicly Disseminated message for their Part 43 submissions.

d. A report on their submitted and validated Part 43 submissions. 

e. A report on the last valid Part 43 message related to all open swaps. 

References: CFTC Rule(s) §43.3(e)(1)(iii).

10.2.5 Part 43: Non-Reporting Counterparties

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 
KOR SDR RULEBOOK 65

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) §43.3(e)(2).

10.2.6 Part 43: Exception

The requirements to correct errors set forth in CFTC Rule 43.3(e) only apply to errors in Swap 

Transaction and Pricing 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 Transaction and 

Pricing 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 set forth in CFTC Rule 43.3(e). KOR SDR will not accept the submission of swaps past 

their retention period.

References: CFTC Rule(s) §43.3(e)(3).

10.2.7 Part 43: Error defined

10.2.7.1 Part 43: Errors 

There is an error when Swap Transaction and Pricing Data is not completely and accurately 

reported. This includes, but is not limited to, the following circumstances:

a. Any of the Swap Transaction and Pricing Data for a swap reported to KOR SDR is incorrect or 

any of the Swap Transaction and Pricing Data that is maintained by KOR SDR differs from any 

of the relevant Swap Transaction and Pricing Data contained in the books and records of a 

party to the swap.

b. Any of the Swap Transaction and Pricing Data for a swap that is required to be reported to 

the Swap Data Repository or to be maintained by a Swap Data Repository is not reported to 

the Swap Data Repository or is not maintained by the Swap Data Repository as required by 

this part.

c. None of the Swap Transaction and Pricing Data for a swap that is required to be reported to 

a Swap Data Repository or to be maintained by a Swap Data Repository is reported to a Swap 

Data Repository or is maintained by a Swap Data Repository.

d. Any of the Swap Transaction and Pricing Data for a swap that is no longer an Open Swap is 

maintained by KOR SDR as if the swap is still an open swap.

References: CFTC Rule(s) §43.3(e)(4)(i), 43.3(e)(4)(i)(A), 43.3(e)(4)(i)(B), 43.3(e)(4)(i)(C) and 

43.3(e)(4)(i)(D).

10.2.7.2 Part 43: Presumption 
KOR SDR RULEBOOK 66

For the purposes of this section, there is a presumption that an error exists if the Swap Data or the 

Swap Transaction and Pricing Data that is maintained and disseminated by KOR SDR for a swap 

is not complete and accurate. This includes, but is not limited to, the Swap Data that KOR SDR 

makes available to the Reporting Counterparty for verification under CFTC Rule §49.11.

References: CFTC Rule(s) §43.3(e)(4)(ii).

10.3 Part 43: Data Validation Acceptance Message

KOR SDR shall validate each Swap Transaction and Pricing Data report submitted to KOR SDR

and notify the Reporting Counterparty, SEF, or DCM submitting the report whether the report 

satisfied the Data Validation Procedures of KOR SDR ASATP after accepting the Swap 

Transaction and Pricing Data report. After each submission, the submitting Client will be returned 

a response message that indicates if the submission was valid or not. Users will also have the 

ability to query all error messages and submission logs maintained by KOR SDR. All error 

messages will clearly state what part of the KOR SDR Technical Specifications validations failed. 

If a Swap Transaction and Pricing Data report submitted to KOR SDR does not satisfy the Data 

Validation Procedures of KOR SDR, the Reporting Counterparty, SEF, or DCM required to submit 

the report has not satisfied its obligation to report Swap Transaction and Pricing Data in the manner 

provided in the KOR SDR Technical Specifications. The Reporting Counterparty, SEF, or DCM

has not satisfied its obligation until it submits the Swap Transaction and Pricing Data report, which 

satisfies the Data Validation Procedures of KOR SDR.

References: CFTC Rule(s) §43.3(f)(1) and 43.3(f)(2).

10.4 Part 43: Swap Transaction and Pricing Data to be Publicly 

Disseminated in real-time

10.4.1 Reporting of notional or principal amounts to KOR SDR

10.4.1.1 Part 43: Off-Facility Swaps 

The Reporting Counterparty shall report the actual notional or principal amount of any Publicly 

Reportable Swap Transaction that is an Off-Facility Swap to KOR SDR.

References: CFTC Rule(s) §43.4(d)(1).

10.4.2 Part 43: Swaps executed on or pursuant to the rules of a SEF or 

DCM
KOR SDR RULEBOOK 67

A SEF or DCM shall report the actual notional or principal amount for all swaps executed on or 

pursuant to the rules of such SEF or DCM to a Swap Data Repository that accepts and Publicly 

Disseminates such data pursuant to this part.

The actual notional or principal amount for any Block Trade executed on or pursuant to the rules 

of a SEF or DCM shall be reported to the SEF or DCM pursuant to the rules of the SEF of DCM.

References: CFTC Rule(s) §43.4(d)(2)(i) and 43.4(d)(2)(ii).

10.5 Part 43: Block Trades and large notional Off-Facility Swaps

10.5.1 Part 43: Required notification

As the required time delay for Public Dissemination is based on the registration designation of the 

counterparties and if the swap is subject to mandatory clearing, this information is required to be 

submitted per the KOR SDR Technical Specifications.

10.5.2 Part 43: Block Trade election

Block Trades entered into on a trading system or platform, that is not an order book as defined in 

CFTC Rule §37.3(a)(3) of a SEF, or pursuant to the rules of a SEF or DCM.

a. If the parties make such an election, the Reporting Counterparty shall notify the SEF or DCM, 

as applicable, of the parties' election. The parties to a Publicly Reportable Swap Transaction

may elect to have a Publicly Reportable Swap Transaction treated as a Block Trade if such 

swap:

i. Is executed on the trading system or platform, that is not an order book as defined in 

CFTC Rule § 37.3(a)(3) of a SEF, or pursuant to the rules of a SEF or DCM; and

ii. That has a notional amount at or above the appropriate minimum block size.

b. The SEF or DCM, as applicable, shall notify KOR SDR of such a Block Trade election when 

reporting the Swap Transaction and Pricing Data to KOR SDR in accordance with this part.

c. The SEF or DCM, as applicable, shall not disclose Swap Transaction and Pricing Data relating 

to a Block Trade subject to the Block Trade election prior to the expiration of the applicable 

delay set forth in CFTC Rule §43.5(d).

References: CFTC Rule(s) §43.6(h)(1), 43.6(h)(1)(i), 43.6(h)(1)(i)(A), 43.6(h)(1)(i)(B), 

43.6(h)(1)(ii), and 43.6(h)(1)(iii).

10.5.3 Large Notional Off-Facility Swap election

The parties to a Publicly Reportable Swap Transaction that is an Off-Facility Swap and that has a 

notional amount at or above the Appropriate Minimum Block Size may elect to have the Publicly 

Reportable Swap Transaction treated as a large notional Off-Facility Swap. If the parties make 
KOR SDR RULEBOOK 68

such an election, the Reporting Counterparty for such Publicly Reportable Swap Transaction shall 

notify KOR SDR of the Reporting Counterparty's election when reporting the Swap Transaction

and Pricing Data in accordance with this part.

References: CFTC Rule(s) §43.6(h)(2).

10.5.4 Part 43: Special Provisions relating to appropriate minimum block 

sizes and Cap Sizes

The following special rules shall apply to the determination of appropriate minimum block sizes 

and Cap Sizes. KOR SDR may require information on the swap submission to indicate when 

special provisions are invoked in order to accurately create compliance reports on Part 43 data. 

References: CFTC Rule(s) §43.6(i).

10.5.5 Swaps with optionality

The notional amount of a swap with optionality shall equal the notional amount of the component 

of the swap that does not include the option component.

References: CFTC Rule(s) §43.6(i)(1).

10.5.6 Swaps with Composite Reference Prices

The parties to a swap transaction with composite Reference Prices may elect to apply the lowest 

Appropriate Minimum Block Size or Cap Size applicable to one component Reference Price's

swap category of such Publicly Reportable Swap Transaction.

References: CFTC Rule(s) §43.6(i)(2).

10.5.7 Notional amounts for physical commodity swaps

Unless otherwise specified in CFTC Rule §43.6, the notional amount for a Physical Commodity 

Swap shall be based on the notional unit measure utilized in the related futures contract or the 

predominant notional unit measure used to determine notional quantities in the cash market for the 

relevant, underlying physical commodity.

References: CFTC Rule(s) §43.6(i)(3).

10.5.8 Currency conversion

Unless otherwise specified in this part, when the Appropriate Minimum Block Size or Cap Size

for a Publicly Reportable Swap Transaction is denominated in a currency other than U.S. dollars, 

parties to a swap and registered entities may use a currency exchange rate that is widely published 

within the preceding two Business Days from the date of execution of the swap transaction in order 
KOR SDR RULEBOOK 69

to determine such qualification. The converted USD amount shall be submitted to KOR SDR per 

the KOR SDR Technical Specifications. 

References: CFTC Rule(s) §43.6(i)(4).

10.5.9 Successor currencies

For currencies that succeed a super-major currency, the appropriate currency classification for such 

currency shall be based on the corresponding nominal gross domestic product classification (in 

U.S. dollars) as determined in the most recent World Bank, World Development Indicator at the 

time of succession. If the gross domestic product of the country or nation utilizing the successor 

currency is:

a. Greater than $2 trillion, then the successor currency shall be included among the Super-Major

Currencies;

b. Greater than $500 billion but less than $2 trillion, then the successor currency shall be 

included among the Major currencies; or

c. Less than $500 billion, then the successor currency shall be included among the non-Major

currencies.

References: CFTC Rule(s) §43.6(i)(5), 43.6(i)(5)(i), 43.6(i)(5)(ii), and 43.6(i)(5)(iii).

10.5.10 Aggregation

The aggregation of orders for different accounts in order to satisfy the Appropriate Minimum 

Block Size or the Cap Size requirement is permitted for Publicly Reportable Swap Transactions

only if each of the following conditions is satisfied:

a. The aggregation of orders is done by a person who:

i. Is a commodity trading advisor registered pursuant to section 4n of the Act, or exempt 

from such registration under the Act, or a principal thereof, and who has discretionary 

trading authority or directs Client accounts;

ii. Is an investment adviser who has discretionary trading authority or directs Client

accounts and satisfies the criteria of §4.7(a)(2)(v); or

iii. Is a foreign person who performs a similar role or function as the persons and is 

subject as such to foreign regulation;

b. The aggregated transaction is reported pursuant to Part 45 of CFTC rules as a Block Trade or 

large notional Off-Facility Swap, as applicable, subject to the Cap Size thresholds;

c. The aggregated orders are executed as one swap transaction; and

d. Aggregation occurs on a DCM or SEF if the swap is listed for trading by a DCM or SEF.
KOR SDR RULEBOOK 70

References: CFTC Rule(s) §43.6(i)(6), 43.6(i)(6)(i), 43.6(i)(6)(i)(A), 43.6(i)(6)(i)(B), 

43.6(i)(6)(i)(C), 43.6(i)(6)(ii), 43.6(i)(6)(iii), and 43.6(i)(6)(iv).

10.6 Part 43: Information required by KOR SDR for block and large 

notional swap elections

The Reporting Counterparty, SEF, or DCM which submits the Part 43 data must include all 

information for KOR SDR to verify the calculation of the block or large notional election based 

on the CFTC designated categories according to the KOR Technical Specifications. This includes 

information regarding special provisions. 

If a trade qualifies for the block or large notional election but the swap is submitted with a value 

of “False” for the field: “Block trade election indicator”, the dissemination will not be delayed. 

For swaps submitted with a value of “True” for the field: “Block Trade election indicator”:

a. The dissemination will be delayed for the initial Public Dissemination. 

b. Updates to the swap will not be delayed unless the update is received before the initial swap 

is Publicly Disseminated, in which case they will be disseminated immediately after the initial 

dissemination.

i. With the exception, if an update is submitted with a value of “EROR” for the field 

“Action Type” before the swap is Publicly Disseminated, the swap will never be 

Publicly Disseminated. 

For swaps submitted with a value of “True” for the field: “Block trade election indicator” the 

Reporting Client is required to submit the field “Block Category” with a value applicable to the 

Asset Class per CFTC Rule §43.6(c), or the value of “Not Covered” where the underlier is not 

covered.

KOR SDR will generate a daily compliance report provided to the Commission and the Reporting 

Counterparty, SEF, or DCM which submits the Part 43 data, or their Delegated Reporter that 

identifies all swaps that were submitted with a value of “True” for the field: “Block trade 

election indicator” where the swap did not qualify for the election per KOR SDR’s calculation 

from the information provided by the Client. It is the duty of the SEF, DCM, or their third-party 

representative to review these reports and identify any systematic issues in reporting that need to 

be resolved and make necessary updates as soon as practicable.

For avoidance of doubt, KOR is not responsible for improperly Publicly Disseminated data when 

the Reporting Counterparty, SEF, or DCM which submitted the data did not provide accurate 

information. 

References: CFTC Rule(s) §43.6(c).
KOR SDR RULEBOOK 71

10.7 Part 43: Information required by KOR SDR for commodities masking

For off facility swaps in the other commodities Asset Class, the Part 43 message must include the 

additional field “Related Futures Contract” which must be populated with either (1) a value from

Part 43 Appendix B list, or (2) the value of “No Related Futures Contract”.

This field allows KOR SDR to validate when to mask the UPI and underlying identifier. 

For swaps submitted with a value of “No Related Futures Contract” the Reporting Counterparty

must provide the masking data in order for the swap to be accurately disseminated. This includes 

the fields:

a. “Other Commodity swap category” which must be populated with a valid value from Part 43 

Appendix D; and 

b. “Other Commodity region” which must be populated with a valid value from Part 43 Appendix 

E1 or E2.

References: CFTC Rule(s) §43.4(c), Part 43 Appendix B, D, and E.”

11. KOR SDR duties and obligations regarding CFTC Rule Part 43 

data

11.1 Real-time public reporting

KOR SDR will establish electronic systems as necessary to accept and disseminate data in 

connection with real-time public reporting pursuant to Part 43 of CFTC rules for all swaps in its 

approved Asset Classes. KOR SDR will publicly report Swap Transaction and Pricing Data on 

each publicly reportable swap received. 

KOR SDR shall Publicly Disseminate Swap Transaction and Pricing Data ASATP after such data 

is received from a SEF, DCM, or Reporting Counterparty, unless such Swap Transaction and 

Pricing Data is subject to a time delay described in CFTC Rule 43.5, in which case the Swap 

Transaction and Pricing Data shall be Publicly Disseminated in the manner described in CFTC 

Rule 43.5.

For all transactions which require real-time reporting under Part 43 of CFTC rules, Clients 

submitting data are required to report all fields required by Appendix A to Part 43 of CFTC rules, 

in accordance with the KOR SDR Technical Specification. 

References: CFTC Rule(s) §43.3(b)(1), 43.3(b)(2), 43.3(b)(4), and 49.15(b).

11.1.1 Duty to notify the Commission of untimely data
KOR SDR RULEBOOK 72

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 timeline. For swaps executed Off Facility, where the Reporting Counterparty is a SD, 

MSP or DCO that do not qualify for the large notional delay KOR SDR shall consider Part 43 

messages submitted later than 15 minutes after the Execution Timestamp to be late. For swaps 

executed Off Facility, where the Reporting Counterparty is a non-SD/MSP/DCO that do not 

qualify for the large notional delay KOR SDR shall consider Part 43 messages submitted later than 

1 hour after the Execution Timestamp to be late. For Trades that qualify for the large notional 

delay, KOR SDR shall consider Part 43 messages submitted later than the delay period to be late.

For post priced swaps, KOR SDR shall consider Part 43 messages submitted later than 11:59:59 

p.m. eastern time on the execution date to be late. The report shall contain the necessary 

information to identify the swap and the difference in the execution to submitted time. It is the 

duty of the Reporting Counterparty or their Delegated Reporter representative to review these 

reports and identify any systematic issues in reporting that need to be resolved and make necessary 

updates as soon as practicable. 

KOR SDR will publicly report Swap Transaction and Pricing Data on each publicly reportable 

swap received. KOR SDR Compliance will perform ad-hoc reviews as part of the Audit Program 

to ensure that all required transactions received, are in fact reported and available on KOR SDR’s 

website. These reviews will ensure that all required swaps are appropriately time stamped, all 

required fields have been publicly reported and any fields that are required to be masked were not 

mistakenly made available to the public.

References: CFTC Rule(s) §49.15(c).

11.1.2 Availability of Swap Transaction and Pricing Data to the public

KOR SDR shall make Swap Transaction and Pricing Data available on the KOR website for one 

year after the initial Public Dissemination of such data and shall make instructions freely available 

on said website on how to download and search such data. Swap Transaction and Pricing Data that 

is Publicly Disseminated shall be made available free of charge.

Reference Part 43 Public Website Guide.

References: CFTC Rule(s) §43.3(c)(1) and 43.3(c)(2).
KOR SDR RULEBOOK 73

11.1.3 Swap Transaction and Pricing Data to be Publicly Disseminated in 

real-time

KOR SDR shall Publicly Disseminate the information described in Appendix A of Part 43 of 

CFTC rules for the Swap Transaction and Pricing Data, as applicable, in the form and manner 

provided in the KOR SDR Technical Specifications.

KOR SDR shall require any data and fields necessary to compare the Swap Transaction and Pricing 

Data that was Publicly Disseminated in real-time to the data reported to KOR SDR pursuant to 

section 2(a)(13)(G) of the CEA or to confirm that parties to a swap have reported in a timely 

manner pursuant to CFTC Rule 43.3 as described in the User Guide. Such additional information 

shall not be Publicly Disseminated by KOR SDR.

References: CFTC Rule(s) §43.4(a) and 43.4(b).

11.1.4 Anonymity of the parties to a Publicly Reportable Swap 

Transaction

Swap Transaction and Pricing Data that is Publicly Disseminated in real-time shall not disclose 

the identities of the parties to the swap or otherwise facilitate the identification of a party to a swap. 

KOR SDR shall not Publicly Disseminate such data in a manner that discloses or otherwise 

facilitates the identification of a party to a swap.

KOR SDR requires Clients to provide KOR SDR with Swap Transaction and Pricing Data that 

includes an actual description of the underlying asset(s). KOR SDR Publicly Disseminate the 

actual underlying asset(s) of all Publicly Reportable Swap Transactions in the interest rate, credit, 

equity, and foreign exchange Asset Classes.

References: CFTC Rule(s) §43.4(c)(1) and 43.4(c)(3).

11.1.5 Masking of Delivery Location – Other Commodity Asset Class

For public reporting of transactions in the Other Commodity Asset Class, to ensure anonymity of 

the counterparties, KOR SDR has established procedures on how Clients shall report data and how 

KOR SDR shall disseminate that data in accordance with CFTC Rule(s) Part 43 – Appendix D and 

E Mapping in the KOR SDR Technical Specifications and User Guide.

11.1.6 Liquid markets

The actual underlying assets shall be Publicly Disseminated for any Publicly Reportable Swap 

Transaction that references or is Economically Related to one of the contracts published by the 
KOR SDR RULEBOOK 74

Commission, or any Publicly Reportable Swap Transaction executed on or pursuant to the rules of 

a registered SEF or DCM.

References: CFTC Rule(s) §43.4(c)(4).

11.1.7 Illiquid markets

The underlying assets of publicly reportable swaps that reference or are Economically Related to 

one of the contracts published by the Commission shall be Publicly Disseminated by limiting the 

geographic detail of the underlying assets, pursuant to CFTC Rule(s) Part 43 – Appendix D and E. 

For these swaps, the unique product identifier shall not be disseminated in order to preserve the 

masking, instead, all of the product fields that are not the underlier will be disseminated along with 

the information from CFTC Rule(s) Part 43-Appendix D and E.

References: CFTC Rule(s) §43.4(c)(4).

11.1.8 Notional rounding and capping

KOR SDR has implemented rounding and capping practices consistent with CFTC Rules 43.4(f) 

and (g)18. KOR SDR will disseminate the notional or principal amounts of a publicly reportable 

swap transaction subject to rounding as set forth in 43.4(f) and cap size as set forth in 43.4(g).

References: CFTC Rule(s) §43.4(e).

11.1.9 Time delays for Public Dissemination of Swap Transaction and 

Pricing Data

Block Trades and large notional Off-Facility Swaps are subject to certain time delays. KOR SDR 

shall implement the time delays from execution time based on the Commission’s instructions in 

43.5(d) through (h), as follows:

a. No later than the prescribed time delay period

b. No sooner than the prescribed time delay period

c. Precisely upon the expiration of the time delay period

It is solely the duty of the Reporting Counterparty or execution venue to indicate to KOR SDR if 

the time delay is applicable by correctly populating the Block Trade election indicator field. 

18 KOR SDR shall update its rounding and capping logic per 43.4(h) when and as published by the Commission.
KOR SDR RULEBOOK 75

Where the CFTC grants no action to any parties to delay Public Dissemination outside of the 

prescribed time periods19, it will be the duty of the Reporting Counterparty or execution venue to 

delay their report to KOR SDR until such time that it shall be immediately disseminated.

References: CFTC Rule(s) §43.5(a), 43.5(b), 43.5(b)(1), 43.5(b)(2), 43.5(b)(3), 43.5(d), 

43.5(d)(2), 43.5(e), 43.5(e)(1), 43.5(e)(2), 43.5(e)(2)(ii), 43.5(e)(3), 43.5(e)(3)(ii), 43.5(f), 

43.5(f)(3), 43.5(h), and 43.5(h)(3).

12. Dispute Resolution

KOR has established procedures and provides facilities for effectively resolving disputes over the 

accuracy of the SDR Data and positions that are recorded in the KOR SDR.

When the Reporting Counterparty does not agree with the accuracy of the reporting of a swap in 

KOR SDR, but are prevented from amending the swap to what they believe to be accurate, the 

Client must follow the following steps:

a. Enter a ticket with KOR SDR support with the details of the issue; and

b. Submit an allowed value per the KOR SDR Technical Specifications for the KOR SDR field 

“Reporting Counterparty Dispute”. The allowed values are a high-level indication of the issue. Sample 

values may include but are not limited to: “No accurate UPI available” or “KOR SDR Technical 

Specifications do not allow for accurate representation”. Clients may contact KOR SDR to add 

additional values, but these values will be at the discretion of KOR SDR. 

References: CFTC Rule(s) §49.10(f).

13. Chief Compliance Officer

13.1 CCO Designation

KOR SDR will at all times have a Chief Compliance Officer.

References: CFTC Rule(s) §49.22(b)(1).

13.2 CCO Supervision

The CCO shall be provided adequate authority and resources to develop and enforce the policies 

and procedures developed to ensure compliance and fulfill the duties set forth for CCOs in the Act 

and Commission regulations and in this Rulebook. The chief compliance officer shall have 

supervisory authority over all staff acting at the direction of the chief compliance officer. The 

19 For example, CFTC Letter No. 14-134
KOR SDR RULEBOOK 76

CCO is responsible for overseeing KOR SDR Compliance Department and ensuring compliance 

with the CEA as applicable. On a periodic basis and as needed, the CCO shall consult with the

CEO on the adequacy of resources and make recommendations where needed. The CCO has 

supervisory authority to inspect books and records and interview KOR SDR 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.

References: CFTC Rule(s) §49.22(b)(1)(i) and 49.22(b)(1)(ii).

13.3 CCO Qualifications

The CCO shall have the “background and skills appropriate for fulfilling the responsibilities of the 

position.” KOR senior management has identified the minimum standards that must be met for an 

individual to be considered to have the background and skills necessary to carry out the duties of 

the position of CCO. Below is a list of the qualifications identified and considered when the 

candidate for the position of CCO is recommended to the BOD for approval and appointment:

a. The individual may not be subject to statutory disqualification under section 8a(2) or 8a(3) of 

the CEA.

b. The individual may not be a member of KOR SDR's legal department or serve as its general 

counsel.

c. The individual must have sufficient compliance experience to carry out its responsibilities. 

Such experience could be demonstrated by:

i. Previously holding the title of CCO, as long as the firm at which the individual held 

such title has not been designated as a disciplined firm subject to enhanced 

supervisory requirements imposed by NFA or FINRA;

ii. Functioned in a compliance role or compliance supporting function for a minimum of 

seven years; or

iii. The individual possesses product knowledge sufficient to make any such decision 

required of the CCO.

References: CFTC Rule(s) §49.22(b)(2), 49.22(b)(2)(i), and 49.22(b)(2)(ii).

14. KOR SDR system

14.1 Hours of Operation

The KOR SDR operates 7 days per week, 24 hours per day; including the KOR SDR User Interface 

and the KOR SDR Public Website. KOR SDR does not have planned system downtime to perform 

system maintenance or updates. In the event of scheduled maintenance that requires special closing 

hours, those hours will be the least disruptive to KOR SDR’s reporting responsibilities. KOR SDR
KOR SDR RULEBOOK 77

will provide reasonable advanced notice to Clients and the public. During any ad hoc scheduled or 

unplanned system closures, KOR SDR will accept and hold in queue SDR Data submitted by 

Clients and shall promptly process all SDR Data received during the closure. If an unplanned 

outage causes KOR SDR to be unable to receive and hold SDR Data in a queue, then KOR SDR 

will promptly notify Clients and the public of the outage and will again notify them immediately 

upon resumption of normal operations.

References: CFTC Rule(s) §49.28(a), 49.28(a)(1), 49.28(a)(2), 49.28(c), 49.28(c)(1), and 

49.28(c)(2).

14.2 Emergency policies and procedures

KOR has developed a comprehensive Business Continuity and Disaster Recovery Program. KOR

SDR is included within the broader Business Continuity and Disaster Recovery Program

applicable to KOR as a whole. These policies shall enumerate the circumstances under which KOR

SDR is authorized to invoke its Emergency authority and the procedures that it shall follow to 

declare an Emergency. Such policies and procedures shall also address the range of measures that 

it is authorized to take when exercising such Emergency authority.

The Board of Directors have the power to act in emergencies. In the event that the BOD determines 

than an emergency situation exists in which the operation of KOR SDR is likely to be disrupted, 

the integrity of the data maintained by KOR SDR threatened, or the normal functioning of KOR

SDR has been or is likely to be disrupted, or a KOR SDR Significant Action20 occurs, the board 

may, upon a majority vote of the members present or upon a majority vote of the members who 

respond to a poll, take such action as may in the Board’s sole discretion appear necessary to 

prevent, correct or alleviate the emergency condition. In responding to an emergency situation, the 

directors who abstain from voting on a Significant Action shall not be counted in determining 

whether such action was approved by a majority vote, but such members can be counted for the 

purpose of determining whether a quorum exists. Without limiting the foregoing, the board may 

20 A Significant Action is defined as a KOR SDR action or Rule change which addresses an emergency or the following 

enumerated circumstances: (1) any action taken by the US or any foreign government or any state or local

government body, any other contract market, board of trade or any other exchange or trade association (foreign or 

domestic), which may have a direct impact on the services provided by KOR SDR, any circumstances in which it 

appears that a User or any other Person has failed to fulfill its obligations under the User Agreement. (3) force 

majeure, which shall mean any circumstance (including but not limited to a strike, lockout, national emergency, 

governmental action, or act of God) which is beyond the control of the User (4) as directed by the regulator(s) and/or 

(5) any other circumstance which may have a severe adverse effect upon the functioning of KOR SDR.
KOR SDR RULEBOOK 78

(1) stop accepting derivatives data, (2) suspend direct electronic access to KOR SDR (3) suspected 

real-time reporting of derivatives data and (4) modify the operating days or hours.

In the event a Client or User affected by the Emergency action, KOR SDR shall contact the Client 

or User as soon as reasonably practicable after taking any action. 

References: CFTC Rule(s) §49.23(a), 49.23(b), 49.23(c), 49.23(d) and 49.23(e).

14.3 Systems Safeguards

14.3.1 Systems testing

KOR SDR shall conduct regular, periodic, objective testing and review of its automated systems 

to ensure that they are reliable, secure, and have adequate scalable capacity. It shall also conduct 

regular, periodic testing and review of its business continuity-disaster recovery capabilities.

14.3.2 Systems testing planning

To the extent practicable, KOR shall:

a. Where possible, coordinate with Clients and service providers to participate in synchronized 

testing in a manner adequate to enable effective resumption of KOR SDR’s fulfillment of its 

duties and obligations following a disruption causing activation of KOR SDR’s business 

continuity and disaster recovery plan;

b. Participate in periodic, synchronized testing of its business continuity and disaster recovery 

plan and the business continuity and disaster recovery plans of its Clients, and the business 

continuity and disaster recovery plans required, as applicable, by each appropriate prudential 

regulator, the Financial Stability Oversight Council, the Securities and Exchange Commission, 

the Department of Justice or any other person deemed appropriate by the CFTC; and

c. Ensure that its business continuity and disaster recovery plan take into account the business 

continuity and disaster recovery plans of its telecommunications, power, water, and other 

essential service providers.

References: CFTC Rule(s) §49.24(k), 49.24(k)(1), 49.24(k)(2), and 49.24(k)(3).

14.4 Fees

Fees are assessed in a consistent, non-preferential manner and are not permitted to be used as a 

barrier to entry. KOR SDR 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.

Any fee or charge assessed by KOR SDR for the collection of real-time Swap Transaction and 

Pricing Data shall be equitable and non-discriminatory. If KOR SDR allows a fee discount based 
KOR SDR RULEBOOK 79

on the volume of data reported to it for Public Dissemination, then such discount shall be made 

available to all Reporting Counterparties, SEFs and DCMs that are Clients in an equitable and nondiscriminatory manner.

All fees are fully disclosed and available on the KOR SDR Website.

Changes to the KOR SDR fee schedule will be consistent with the principles set forth in this section 

and must be processed through the rule amendment process.

References: CFTC Rule(s) §43.3(g), 49.27(b)(1), 43.3(g), 49.19(e)(3), 49.27(b)(2), and 

49.27(b)(3).

15. Disciplinary procedures

15.1 Violation of KOR SDR rules

The CCO or his or her designee is responsible for investigation of any potential violation of the 

KOR SDR Rulebook. The CCO has the authority to request information of any Client as part of 

an investigation of any rule violation. Rule violations will be documented, and all supporting 

documentation will be retained. If deemed necessary by the CCO, a Client or User’s access may 

be suspended or revoked. The CCO is also responsible for making a decision to restore a Client or 

User’s access by conducting a comprehensive review of a Client’s compliance with regulatory 

requirements as well as KOR SDR Rules, as applicable.

15.2 Client Denial, Revocation, or Suspension

KOR Reporting has the right to decline, revoke, or suspend a Client. Market Participants may be 

denied access pursuant to Applicable Law (e.g., OFAC or the direction of a regulator), violation 

of KOR SDR Rules, or improper use of the system. KOR shall notify the applicable regulator of 

any Client whose access has been denied, revoked, or suspended due to Applicable Law. Final 

determination to decline, revoke, or suspend a Client shall be made by the Chief Compliance 

Officer. 

In the event a Client is denied, revoked, or suspended; KOR shall provide the Market Participant 

written notice containing the grounds for determination and the opportunity to appeal the decision 

to the CCO and Board of Directors by written request. 

15.3 Restoring Client Access

KOR may restore access to a Client after approval from the CCO and/or the Board of Directors. 

The CCO shall take under consideration Applicable Law, regulatory requirements, and the Market 
KOR SDR RULEBOOK 80

Participant’s response to the cause of denial, revocation, or suspension. All decisions shall be 

documented when determining whether to restore access.