CFTC Reminds Swap Parties to Correct Errors in Trade Reporting

The CFTC Division of Data ("DOD") reminded market participants of their obligation to correct errors in data submitted to a swap data repository ("SDR").

In its "Staff Advisory on Reporting of Errors and Omissions in Previously Reported Data," DOD stated that recent amendments to CFTC Regulations 43.3 ("Method and timing, real time reporting") and 45.14 ("Correcting errors in swap data and verification of swap data accuracy") require a person that reports swap data to notify CFTC staff if said person will not timely correct any errors. Amendments were scheduled to go into effect on May 25, 2022, but staff granted no-action relief for compliance with the regulations until December 5, 2022.

DOD cited CFTC Letter 22-06, which sets forth a process, including forms and the relevant email address to contact for reporting failures, to timely correct errors. The staff stated that although the error-correction notification requirement was adopted recently, the requirement to ensure data remains current and accurate dates back to original data reporting rules adopted in 2012 as does the requirement to report errors. Staff further urged market participants to review, "as early as possible," open swaps data to identify and correct any errors, in particular for a swap that is no longer "open" but is maintained by an SDR as if the swap is open.