[Federal Register Volume 81, Number 130 (Thursday, July 7, 2016)]
[Notices]
[Pages 44379-44388]
[FR Doc No: 2016-16112]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78216; File No. SBSDR-2016-02]

Security-Based Swap Data Repositories; DTCC Data Repository
(U.S.) LLC; Notice of Filing of Application for Registration as a
Security-Based Swap Data Repository

June 30, 2016.

I. Introduction

    On April 6, 2016 and as amended on April 25, 2016, DTCC Data
Repository (U.S.) LLC (``DDR'') filed with the Securities and Exchange
Commission (``Commission'') a Form SDR seeking registration as a
security-based swap data repository (``SDR'') under Section 13(n) of
the Securities Exchange Act of 1934 (``Exchange Act'') \1\ and the
Commission's rules promulgated thereunder.\2\ DDR states that it
proposes to operate as a registered SDR for security-based swap
(``SBS'') transactions in the credit, equity, and interest rates \3\
derivatives asset classes. The Commission is publishing this notice to
solicit comments from interested persons regarding DDR's Form SDR,\4\
and the Commission will consider any comments it receives in making its
determination whether to grant DDR registration as an SDR.\5\
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    \1\ 15 U.S.C. 78m(n)(3).
    \2\ 17 CFR 240.13n-1 through 240.13n-12.
    \3\ DDR seeks to include in its application the ``rates'' asset
class based on feedback from potential DDR participants who have
identified certain types of transactions which will be reported
through the interest rate infrastructure within the industry and
that the industry participants have identified as falling under the
definition of a SBS. The Commission notes that DDR's application is
for registration as a SBS data repository, which the Exchange Act
defines as a ``person that collects and maintains information or
records with respect to transactions or positions in, or the terms
and conditions of, security-based swaps entered into by third
parties for the purpose of providing a centralized recordkeeping
facility for security-based swaps.'' 15 U.S.C. 78c(a)(75).
    \4\ DDR filed its Form SDR, including the exhibits thereto,
electronically with the Commission. The descriptions set forth in
this notice regarding the structure and operations of DDR have been
derived, excerpted, and/or summarized from information in DDR's Form
SDR application, and principally from DDR's Rulebook (Exhibit HH.2),
which outlines the applicant's policies and procedures designed to
address its statutory and regulatory obligations as an SDR
registered with the Commission. DDR's Form SDR application and non-
confidential exhibits thereto are available on [appropriate EDGAR
reference to be inserted]. In addition, the public may access copies
of these materials on the Commission's Web site at: [appropriate Web
site address to be inserted].
    \5\ DDR's Form SDR application also constitutes an application
for registration as a securities information processor. See Exchange
Act Release No. 74246 (Feb. 11, 2015), 80 FR 14438, 14458 (Mar. 19,
2015) (``SDR Adopting Release'').
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II. Background

A. SDR Registration, Duties and Core Principles, and Regulation SBSR

    Section 763(i) of the Dodd-Frank Act added Section 13(n) to the
Exchange Act, which requires an SDR to register with the Commission and
provides that, to be registered and maintain registration as an SDR, an
SDR must comply with certain requirements and ``core principles''
described in Section 13(n) and any requirement that the Commission may
impose by rule or regulation.\6\
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    \6\ 15 U.S.C. 78m(n).
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    The Commission adopted Exchange Act Rules 13n-1 through 13n-12
(``SDR rules''), which require an SDR to register with the Commission
and comply with certain ``duties and core principles.'' \7\ Among other
requirements, the SDR rules require an SDR to collect and maintain
accurate SBS data and make such data available to the Commission and
other authorities so that relevant authorities will be better able to
monitor the buildup and concentration of risk exposure in the SBS
market.\8\
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    \7\ See SDR Adopting Release, 80 FR 14438.
    \8\ See SDR Adopting Release, 80 FR at 14450.
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    Concurrent with the Commission's adoption of the SDR rules, the
Commission adopted Regulation SBSR,\9\ which, among other things,
provides for the reporting of SBS information to registered SDRs, and
the public dissemination of SBS transaction, volume, and pricing
information by registered SDRs. In addition, Regulation SBSR requires
each registered SDR to register with the Commission as a securities
information processor.\10\
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    \9\ See Exchange Act Release No. 74244 (Feb. 11, 2015), 80 FR
14563 (Mar. 19, 2015) (``Regulation SBSR Adopting Release'').
    \10\ See Regulation SBSR Adopting Release, 80 FR at 14567.
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B. Standard for Granting SDR Registration

    To be registered with the Commission as an SDR and maintain such

registration, an SDR is required (absent an exemption) to comply with
the requirements and core principles described in Exchange Act Section
13(n), as well as with any requirements that the Commission adopts by
rule or regulation.\11\ Exchange Act Rule 13n-1(c)(3) provides that the
Commission shall grant the registration of an SDR if it finds that the
SDR is so organized, and has the capacity, to be able to (i) assure the
prompt, accurate, and reliable performance of its functions as an SDR;
(ii) comply with any applicable provisions of the securities laws and
the rules and regulations thereunder; and (iii) carry out its functions
in a manner consistent with the purposes of Section 13(n) of the
Exchange Act and the rules and regulations thereunder.\12\ The
Commission must deny registration of an SDR if it does not make such a
finding.\13\
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    \11\ See Exchange Act Section 13(n)(3), 15 U.S.C. 78m(n)(3).
    \12\ See 17 CFR 240.13n-1(c)(3).
    \13\ See id.
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    In determining whether an applicant meets the criteria set forth in
Rule 13n-1(c), the Commission will consider the information reflected
by the applicant on its Form SDR, as well as any additional information
obtained from the applicant. For example, Form SDR requires an
applicant to provide, among other things, contact information, a list
of the asset class(es) for which the applicant is collecting and
maintaining data or for which it proposes to collect and maintain data,
a description of the functions that it performs or proposes to perform,
and general information regarding its business organization.\14\ This,
and other information reflected on the Form SDR, will assist the
Commission in understanding the basis for registration as well as the
SDR applicant's overall business structure, financial condition, track
record in providing access to its services and data, technological
reliability, and policies and procedures to comply with its statutory
and regulatory obligations.\15\ Furthermore, the information requested
in Form SDR will enable the Commission to assess whether the SDR
applicant would be able to comply with the federal securities laws and
the rules and regulations thereunder, and ultimately whether to grant
or deny an application for registration.\16\
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    \14\ See SDR Adopting Release, 80 FR at 14458.
    \15\ See id.
    \16\ See SDR Adopting Release, 80 FR at 14458-59.
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III. DDR Application for Registration

    DDR currently operates as a trade repository under the regulatory
framework of other authorities. Specifically, DDR is a swap data
repository regulated and provisionally registered by the Commodity
Futures Trading Commission (``CFTC'').\17\ In that capacity, DDR has
been accepting derivatives data for the commodity, foreign exchange,
interest rate, and credit asset classes in the United States since
December 2012.\18\ Additionally, in 2014, DDR was approved by the
Ontario Securities Commission,\19\ the Autorit[eacute] des
march[eacute]s financiers,\20\ and the Manitoba Securities Commission
\21\ as a Canadian Trade Repository to serve the commodity, credit,
equity, interest rate, and foreign exchange asset classes.\22\
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    \17\ See Order of Provisional Registration, In the Matter of the
Request of DTCC Data Repository (U.S.), LLC for Provisional
Registration as a Swap Data Repository Pursuant to Section 21 of the
Commodity Exchange Act and Part 49 of the Commodity Futures Trading
Commission's Regulations (Sept. 19, 2012), available at<EMAIL_ADDRESS>Order Adding Asset Class, In the Matter
of the Request of DTCC Data Repository (U.S.) LLC to Amend Its Form
SDR to Add the Other Commodity Asset Class Pursuant to Part 49 of
the Commission's Regulations (Dec. 3, 2012), available at<EMAIL_ADDRESS>    \18\ See Press Release, DTCC, DTCC Swap Data Repository Real-
Time Reporting Now Live (Jan. 03, 2013), available at http://www.dtcc.com/news/2013/january/03/swap-data-repository-real-time.
    \19\ See Ontario Securities Commission, Order (Section 21.2.2 of
the Securities Act), in the Matter of the Securities Act, R.S.O.
1990, Chapter S.5, as amended, and in the Matter of DTCC Data
Repository (U.S.) LLC (Sept. 19, 2014), available at http://www.osc.gov.on.ca/en/SecuritiesLaw_ord_20140923_dtcc-data-repository.htm.
    \20\ See Autorit[eacute] des march[eacute]s financiers, Decision
2014-PDG-0110, Bulletin 2014-09-25, Vol. 11, n[deg]38 (Sept. 23,
2014), available at https://www.lautorite.qc.ca/files/pdf/bulletin/2014/vol11no38/vol11no38_7.pdf.
    \21\ See Manitoba Securities Commission, Order No. 7013 (Oct.
23, 2014), available at http://docs.mbsecurities.ca/msc/oe/en/105125/1/document.do.
    \22\ Other trade repository subsidiaries of the Depository Trust
& Clearing Corporation (``DTCC'') operate in Europe, Japan, Hong
Kong, Singapore, and Australia. See generally http://dtcc.com/derivatives-services/global-trade-repository.
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A. Corporate Structure and Governance Arrangements

    DDR is a New York limited liability company, and is a wholly owned
subsidiary of DTCC Deriv/SERV LLC, which, in turn, is a wholly owned
subsidiary of The Depository Trust & Clearing Corporation
(``DTCC'').\23\ DDR is managed by a Board of Directors (``Board'')
responsible for overseeing its operations.\24\ The Board (directly or
by delegating certain responsibilities to its committees) fulfills its
responsibilities under its charter and DDR's mission statement by: (i)
Overseeing management's activities in managing, operating, and
developing DDR as a firm and evaluating management's performance of its
responsibilities; (ii) ratifying management's selection of the CEO and
providing advice and counsel to the CEO; (iii) providing oversight of
the performance of the CEO and of DDR to evaluate whether the business
is being appropriately managed; (iv) setting expectations about DDR's
tone and ethical culture and reviewing management efforts to instill an
appropriate tone and culture; (v) reviewing and approving DDR's
financial objectives and major corporate plans and actions; (vi)
providing guidance to the CEO and to management in formulating
corporate strategy and approving strategic plans; (vii) providing
oversight of risk assessment and risk management monitoring processes;
(viii) providing input and direction to governance structures and
practices to position the Board to fulfill its duties effectively and
efficiently consistent with DDR's principles of governance; (ix)
providing oversight and guidance regarding the design of informational
reporting to the Board and relevant regulators; (x) adopting principles
governing new initiative approval processes and overseeing DDR's
processes relating to new business selection and development of new
businesses and new or expanded products and services, including
guidelines for the analyses supporting any material operational or risk
management changes that are proposed by management; (xi) providing
oversight of DDR's internal and external audit processes, financial
reporting, and disclosure controls and procedures, including approving
major changes in auditing and accounting principles and practices;
(xii) fostering DDR's ability to ensure compliance with applicable laws
and regulations including derivatives, securities, and corporation laws
and other applicable regulatory guidance and international standards;
(xiii) ensuring that in DDR's decision-making process an Independent
Perspective as defined in Section 49.2 of the CFTC's regulations, is
considered; \25\ and (xiv)

performing such other functions as the Board believes appropriate or
necessary, or as otherwise prescribed by rules or regulations.\26\
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    \23\ See Exhibit HH.2, Section 2.1. DTCC is the parent company
of a variety of entities, including three clearing agencies
registered under Section 17A of the Exchange Act and that have been
designated as systemically important by the Financial Stability
Oversight Council under Title VIII of the Dodd-Frank Act (i.e., the
National Securities Clearing Corporation, the Fixed Income Clearing
Corporation, and the Depository Trust Company).
    \24\ See id.
    \25\ The CFTC has defined the term ``Independent Perspective''
to mean ``a viewpoint that is impartial regarding competitive,
commercial, or industry concerns and contemplates the effect of a
decision on all constituencies involved.'' 17 CFR 49.2(a)(6).
    \26\ See Exhibit D.2 (DDR Mission Statement and Board Charter).
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    According to DDR, the number of directors on the Board is
determined by DTCC Deriv/SERV LLC (``DTCC Deriv/SERV'') as the sole LLC
member of DDR.\27\ DDR represents that DTCC Deriv/SERV will strive to
include on the Board an equal number of representatives of U.S. and
non-U.S. domiciled firms.\28\ DDR represents that the Board is composed
of individuals from the following groups: Employees of DDR's users
(either fees-paying users or end users) with derivatives industry
experience, buy-side representatives, independents, and members of
DTCC's senior management or DTCC's Board of Directors, with the
understanding that at least two Board members will be DTCC senior
management or DTCC Board members.\29\ DDR represents that DTCC Deriv/
SERV's Nominating Committee shall periodically review the Board's
composition to assure that the DDR directors possess the skills
required to direct and oversee management in the best interests of its
shareholders and other stakeholders, with these skills including
derivatives industry experience, risk management experience, business
specialization, technical skills, industry stature, and seniority and
experience at their own organizations.\30\
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    \27\ See Exhibits D (governance narrative), D.2, and HH.2,
Section 2.2.
    \28\ See Exhibits D and D.2.
    \29\ See id.; see also Exhibit HH.2, Section 2.2. DDR states
that the Board will include appropriate representation by
individuals who are independent as specified by applicable
regulations. See id.
    \30\ See Exhibit D.
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    Additionally, DDR represents that it welcomes suggestions from
market participants of proposed or alternative candidates to serve on
the DDR Board, which may be submitted through the notices procedures
described in the Operating Procedures of DDR's Rulebook.\31\
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    \31\ See Exhibit HH.2, Section 2.2 and attached Operating
Procedures.
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    DDR's Rulebook provides that its Chief Compliance Officer (``CCO'')
is appointed by the Board and reports directly to the chief executive
officer of DDR.\32\ The Board is responsible for the appointment and
removal of the CCO and approval of CCO compensation, which is at the
discretion of the Board and effected by majority vote.\33\ In addition,
the Board shall meet with the CCO at least annually.\34\ According to
DDR, the CCO also works directly with the Board in certain instances,
for example, when resolving conflicts of interest.\35\ DDR represents
that the CCO's responsibilities include, but are not limited to, the
following items: (i) Oversee and review DDR's compliance with the
applicable regulations; (ii) establish and administer written policies
and procedures reasonably designed to prevent violation of the
applicable regulations; (iii) take reasonable steps to ensure
compliance with applicable regulations relating to agreements,
contracts or transactions; (iv) establish procedures for the
remediation of non-compliance issues identified by the CCO through a
compliance office review, look-back, internal or external audit
finding, self-reported error, or validated complaint; (v) notify the
Board as soon as practicable upon becoming aware of a circumstance
indicating that DDR, or an individual acting on its behalf, is in non-
compliance with the applicable laws of a jurisdiction in which it
operates and either: (a) The non-compliance creates a risk to a DDR
User; \36\ (b) the non-compliance creates a risk of harm to the capital
markets in which it operates; (c) the non-compliance is part of a
pattern of non-compliance; or (d) the non-compliance may have an impact
on DDR's ability to carry on business as a trade repository in
compliance with applicable law; (vi) establish and follow appropriate
procedures for the handling, management response, remediation,
retesting and closing of noncompliance issues; (vii) establish and
administer a written code of ethics; and (viii) prepare and sign an
annual compliance report in accordance with applicable regulations and
associated recordkeeping.\37\
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    \32\ See Exhibit HH.2, Section 2.3.
    \33\ See id.
    \34\ See id.
    \35\ See id.
    \36\ DDR defines the term ``User'' to mean an entity that has
executed a DDR User Agreement, which allows for participation in one
or more DDR services or systems. See Exhibit HH.2, Section 12.
    \37\ See Exhibit HH.2, Section 2.3.
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    DDR directors must comply with DDR's Board Code of Ethics and
Conflicts of Interest Policy (the ``Code''), which is intended to focus
directors on their duties as fiduciaries and provide guidance to
directors to help them recognize and deal with ethical issues, provide
mechanisms to report unethical conduct, help foster a culture of
honesty and accountability, and address actual and potential conflicts
of interest.\38\ In addition, each director is required to complete a
certificate attesting to compliance with DDR's Code upon becoming a
director, and, thereafter, on an annual basis. According to DDR's Code,
key responsibilities for directors include: (i) Acting honestly, in
good faith and in the best interests of DDR and all of the users of
DDR; (ii) using best efforts to avoid conflicts between personal and
professional interests as they relate to DDR where possible; (iii)
disclosing any conflicts and otherwise pursuing the ethical handling of
conflicts (whether actual or apparent) when conflicts or the appearance
of conflicts are unavoidable; (iv) complying with all applicable laws,
regulations and DDR policies; (v) promptly reporting any violations of
the Code to the Chairman of DDR's Board or to DDR's counsel and DDR's
CCO; (vi) seeking guidance where necessary; and (vii) being accountable
personally for adherence to the Code.\39\
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    \38\ See Exhibit D.4 (DDR Board Code of Ethics).
    \39\ See id.
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B. Description of DDR's SDR Service

    DDR has applied to register as an SDR with the Commission to accept
data in respect of all SBS transactions in the credit, equity, and
interest rates derivatives asset classes.\40\
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    \40\ See DDR Form SDR, Item 6; see also Exhibit HH.2, Section
3.1.
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    DDR represents that, if registered with the Commission, it would,
among other things: (i) Perform all of the required functions of an SDR
under the Commission's Rules 13n-1 through 13n-11; (ii) accept, from or
on behalf of Users, transaction and life-cycle data for SBS as
specified in the Commission's Regulation SBSR, as and when required to
be reported to an SDR thereunder; (iii) verify and maintain swap and
SBS data as required by such regulations; (iv) publicly disseminate SBS
data as and when required under the Commission's Regulation SBSR,
either directly or through one or more third parties; (v) provide
access to swap and SBS data to appropriate regulators; and (vi)
generate reports with respect to transaction data maintained in DDR, in
each case as specified in further detail in DDR's Operating Procedures
and applicable publications.\41\
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    \41\ See Exhibit HH.2, SDR Appendix to the DDR Operating
Procedures.
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C. Access

    DDR represents that it would provide access to its SDR service on a
fair, open and equal basis.\42\ According to DDR, access to and usage
of its SDR service would be available to all market participants that
engage in SBS transactions, and DDR does not and would not bundle or
tie its SDR services

with any other services.\43\ DDR represents that to participate in its
SDR services, each User would be required to (i) enter into a User
Agreement in one of the forms provided by DDR and (ii) agree to be
bound by the terms of the User Agreement and DDR's Operating
Procedures.\44\ According to DDR, an entity would be permitted to view
the records relating to an individual transaction if it is: (i) A
counterparty or an authorized agent of a counterparty to the
transaction; (ii) a regulator and the transaction is reportable to that
regulator; or (iii) a third-party agent submitter of the transaction,
provided that agents who are submitters will not be able to view the
current positions, unless authorized by a counterparty to the
transaction, but will be able to see the submission report only for the
purpose of viewing the success or failure of messages submitted by such
agents.\45\ DDR represents that it shall retain exclusive control over
the system through which its SDR services are provided.\46\
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    \42\ See Exhibits U, V, Y, and HH.2, Section 1.1.
    \43\ See Exhibit HH.2, Section 1.1.
    \44\ See Exhibit HH.2, Section 1.2.
    \45\ See Exhibit HH.2, Section 1.3.
    \46\ See id.
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    DDR represents that it may summarily terminate a User's account and
access to SDR services when the Board determines that: (a) The User has
materially breached its User Agreement, DDR's Operating Procedures, or
the rules contained in its Rulebook, which threatens or may cause
immediate harm to the normal operation of DDR's system, or any
applicable law including those relating to the regulations administered
and enforced by the U.S. Department of Treasury's Office of Foreign
Assets Control or the Canadian Government Office of the Superintendent
of Financial Institutions; or (b) the User's account or User's IT
system is causing material harm to the normal operation of DDR's
system.\47\ According to DDR, the following actions must take place
before DDR staff initiates any actions which may result in a User's
termination of access to the DDR system and, specifically, SDR
services: (i) DDR senior management, as well as DDR's counsel and CCO,
must be involved in any decision to involuntarily terminate a User; and
(ii) the Chairman of the Board of DDR must be notified in advance of
any involuntary termination.\48\ DDR represents that, upon a summary
termination of a User's access pursuant to its rulebook, DDR shall, as
soon as possible, notify the impacted User of the termination in
writing or via email, with such notice stating, to the extent
practicable, in general terms how pending transaction submissions and
other pending matters will be affected and what steps are to be taken
in connection therewith.\49\
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    \47\ See Exhibit HH.2, Section 10.3.1.
    \48\ See id.
    \49\ See id. Because persons applying to be SDRs are also
applying to be SIPs with the Commission, the procedures for
notifying the Commission of any prohibitions or limitations of
access to services as provided in Section 11A(b)(5)(A) would apply.
See SDR Adopting Release, 80 FR at 14482 (``Rule 909 of Regulation
SBSR, which the Commission is concurrently adopting in a separate
release, requires each registered SDR to register as a SIP, and, as
such, Exchange Act Section 11A(b)(5) governs denials of access to
services by an SDR. This section provides that `[i]f any registered
securities information processor prohibits or limits any person in
respect of access to services offered, directly or indirectly, by
such securities information processor, the registered securities
information processor shall promptly file notice thereof with the
Commission.' Accordingly, an SDR must promptly notify the Commission
if it prohibits or limits access to any of its services to any
person.'').
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D. Use of Data

    DDR represents that its services would be available to all market
participants on a fair, open and equal basis. DDR represents that a
market participant must be on-boarded as a DDR User to be granted
access to the DDR system, receive trade information, confirm or verify
transactions, submit messages, or receive reports.\50\ For those market
participants that on-board, DDR would provide a mechanism for Users to
access the DDR system to confirm and verify transactions and provide
Unique Identification Code (``UIC'') information as required under its
procedures. Additionally, DDR represents that access to U.S. swap or
SBS data maintained by DDR to market participants is generally
prohibited except to: (i) Either counterparty to that particular swap
or SBS; (ii) authorized third-party service providers or other parties
specifically authorized by the User or counterparty pursuant to DDR's
Rulebook; (iii) or to appropriate domestic or foreign regulators in
accordance with applicable regulation and DDR's Rulebook.\51\
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    \50\ See Exhibit HH.2, Section1.1.
    \51\ See Exhibit HH.2, Section 6.3. With respect to regulator
access, DDR also represents that pursuant to applicable law, the
designated regulators (which is defined to include regulators which
supervise DDR, including the Commission and CFTC) shall be provided
with direct electronic access to DDR data reported to DDR in
satisfaction of such regulator's regulatory mandate to satisfy their
legal and regulatory obligations. See id., Sections 6.2 and 12.
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E. Asset Classes Accepted; Submission Requirements; Validation

    DDR has represented that it would accept data in respect of all SBS
trades in the credit equity, and interest rate \52\ derivatives asset
classes.\53\ DDR has represented that Users would be required to submit
trade information in the data format required by DDR. DDR would accept
data using the following open-source structured data formats: Financial
Products Markup Language (``FpML'') and Comma-separated Value (``CSV'')
file.\54\
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    \52\ See n.3 supra.
    \53\ See Form SDR and Exhibit HH.2, Section 3.1.
    \54\ See Exhibit GG.3.
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    Exhibits GG.2 (for credit derivatives), GG.4 (for equity
derivatives), and GG.6 (for interest rates) to DDR's application
enumerate the required fields and acceptable values for the submission
of trade information into the DDR system. Upon submission of a
transaction, DDR will perform validation checks to ensure that each
submitted record is in the proper format and will also perform
validation and consistency checks against certain data elements,
including, for example, sequencing of time and date fields (e.g., the
termination date must be greater than the trade date).\55\ These
validation types include:
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    \55\ See Exhibit HH.2, Section 10.1.1.
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     Schema validations--check that a submission is consistent
with the accepted format (i.e., CSV is valid, the fields are formatted
correctly);
     Core validations--the basic checks that ensure the
submission can be accepted into the SDR (i.e., Permission, USI/UTI
lock, transaction and action type consistency validations);
     Business validation--applied at the point of in-bound
submission processing to ensure integrity and logical consistency.
These validations will ensure that the messages are well formed and
provide a logical and complete description of the core trade economics
and ensure that DDR does not degrade the quality of the information
held within the repository by allowing incomplete or illogical trade
descriptions to be accepted and stored; and
     Regulatory validations--regulatory-specific validations
applied following the normal business validations. (For example, if the
same field is required by one jurisdiction and is optional for another,
the jurisdiction requiring the field would have a regulatory validation
to check for the field.) \56\
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    \56\ See Exhibit GG.3.
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DDR further represents that it would accept or reject transactions
based on its validation process.\57\ DDR's policies and procedures
state that acceptance messages are called ACKs (acceptance) and
rejection messages are called

NACKs (negative acceptance).\58\ Where a transaction is accepted, both
the submitting party and its on-boarded counterparty would receive
electronic ACK messages. Where a transaction was not accepted, the
submitting party would receive an electronic NACK message along with an
associated error code so that they can correct the transaction and
retransmit to DDR. Where a transaction is accepted but fails one of the
jurisdictional (i.e., regulatory) validations, the submitting party
will receive an electronic notification along with the associated error
code so it can correct the transaction and retransmit to DDR.\59\
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    \57\ See Exhibit GG.3.
    \58\ See id.
    \59\ See id.
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    DDR represents that DDR may reject a transaction record submitted
due to the submission failing to meet DDR validations, including but
not limited to the submission failing to be in a format that can be
ingested by DDR, failing to meet jurisdictional (i.e., regulatory)
requirements or failing to provide required data elements.\60\ DDR
further represents that a rejected submission is deemed not to have
been submitted at all with respect to reporting to the jurisdiction for
which it was rejected, and that it is possible that one transmission is
submitted to comply with reporting in more than one jurisdiction and
may be acceptable for one jurisdiction, but rejected for the other.\61\
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    \60\ See id.
    \61\ See Exhibit HH.2, Section 1.2 and Exhibit GG.3.
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    In connection with the reporting of ``pre-enactment and
transitional SBS,'' DDR represents that it will accept the following
types of historical trades: (i) ``Historical Expired,'' which are pre-
enactment SBS executed before July 21, 2010 but expired or terminated
before the compliance date for Regulation SBSR, (ii) ``Historical,''
which are transitional SBS executed after July 21, 2010 but expired or
terminated before the compliance date for Regulation SBSR, and (iii)
``Backload,'' which are pre-enactment SBS or transitional SBS in
existence on or after the compliance date for Regulation SBSR.\62\ DDR
states that it does not validate whether or not the historical expired
trade satisfies the Commission's definition of an expired pre-enactment
or transitional swap, and that the Historical and Historical Expired
trades will be subject to a minimal set of validations in order for the
submission to be accepted by DDR, which will focus on core fields
necessary for the system to ingest the trade (including a valid Unique
Transaction Identifier).\63\ DDR further states that Backload trades
will have the standard validations that are applied on all SBS
submissions and must meet the requirements in order for the submission
to be ingested and reported to the Commission.\64\
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    \62\ See Exhibit GG.3.
    \63\ See id.
    \64\ See id.
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F. Verification of Transaction Data

    DDR represents that its SDR services verification processes are
designed to reasonably establish that the transaction data that has
been submitted to DDR is complete and accurate.\65\ Once a position is
established either through a snapshot or DDR's own calculation of
events from transaction records, the terms of the position are
designated as either verified, disputed, pending verification, or
deemed verified.\66\
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    \65\ See Exhibit HH.2, Section 3.3.4.
    \66\ See id. A ``snapshot'' refers to a message that reflects
the current state of the trade, which DDR refers to as the trade's
position.
---------------------------------------------------------------------------

    According to DDR, a transaction record is verified if it (i) is
submitted by a Trusted Source (which is defined as an entity, which has
entered into a User agreement, been recognized as a Trusted Source by
DDR and provides the definitive report of a given position),\67\ (ii)
is a trade between affiliated parties, (iii) is submitted from an
affirmation or confirmation platform, or (iv) was executed on an
electronic trading facility.\68\ In addition, the non-reporting User is
responsible for verifying the accuracy of the information that has been
submitted by the reporting party User. DDR represents that a non-
reporting User can verify the accuracy of such information by sending a
verification message indicating that it verifies or disputes each
position where it is identified as the counterparty.\69\
---------------------------------------------------------------------------

    \67\ See Exhibit HH.2, Section 12.
    \68\ See Exhibit HH.2. Sections 3.3.4 and <IP_ADDRESS> and Exhibit
GG.3.
    \69\ See id.
---------------------------------------------------------------------------

    DDR represents that it would attempt to contact counterparties to a
trade reported to DDR who are not Users (a ``Non-User''), where such
party's LEI is provided and there is email contact information
available to DDR in the information or static data maintained by the
DTCC trade repositories \70\ about their Users, to notify the non-User
that a trade has been reported on which it might have been named a
counterparty and it must on-board to DDR to verify the accuracy of the
information submitted and provide any missing information such as UICs,
if applicable.\71\ DDR represents that, if no LEI is provided or if the
email information is not available (for example, under local privacy
laws or contractual obligations between the counterparty and the trade
repository with which it has contracted as a User), it would take no
further action.\72\ In addition, DDR will not verify the accuracy of
the email, nor follow up if an email bounces back.\73\ DDR represents
that it will provide the Commission and CFTC with a monthly status of
the outreach to Non-Users.\74\
---------------------------------------------------------------------------

    \70\ DTCC operates trade repositories in a number of other
jurisdictions. See n.22 supra.
    \71\ See Exhibit HH.2. Sections 3.3.4 and <IP_ADDRESS> and Exhibit
GG.3.
    \72\ See id.
    \73\ See id.
    \74\ See Exhibit HH.2, Section <IP_ADDRESS>.
---------------------------------------------------------------------------

    The DDR system will provide trade detail reports that will enable
Users to view all transaction records, which will allow Users to
reconcile the transaction records in the SDR services to their own risk
systems.\75\ DDR's policies and procedures provide that, in the event
that both counterparties to a trade agree that data submitted to DDR
contains erroneous information (e.g., through a mutual mistake of
fact), such Users may each submit a cancel record, effectively
cancelling the incorrect transaction record.\76\ If a trade record has
been submitted by only one counterparty and it is determined by the
submitting User that it is erroneous, the submitting User may submit a
cancel record.\77\ A User may cancel only its own submitted record and
cannot cancel a record where it is not the submitting party of the
record.\78\ DDR shall maintain a record of all corrected errors
pursuant to applicable regulations and such records shall be available
upon request to the applicable designated regulator.\79\
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    \75\ See Exhibit HH.2, Section 10.1.2.
    \76\ See Exhibit HH.2, Section 10.1.1.
    \77\ See id.
    \78\ See Exhibit HH.2, Section 10.1.1.
    \79\ See id.
---------------------------------------------------------------------------

G. Disputed Trade Data

    Under DDR's policies and procedures, Users are responsible for
resolving any disputes between themselves uncovered during any
reconciliation process and, as appropriate, for submitting correct
information.\80\ If a User disputes a transaction record alleged to
apply to it by the counterparty, or disputes any of the terms within
the alleged transaction, the User shall register such dispute by
submitting a ``dispute'' message.\81\ If such User fails to register
such dispute within 48 hours of the relevant trade detail report being
issued, the record will be marked as ``deemed verified'' in

the DDR system.\82\ All reports and trade records provided to
regulators will include the status of these transaction records,
including dispute and verification status.\83\ Where DDR has received
conflicting or inconsistent records from more than one submitter in
respect of a particular transaction (such as from a security-based swap
execution facility and a reporting party User), DDR would maintain all
such records (unless cancelled or modified in accordance with the terms
of the Rulebook) and make such records available to designated
regulators in accordance with the terms of the User Agreement and
applicable law.\84\
---------------------------------------------------------------------------

    \80\ See Exhibit HH.2, Section 10.1.2.
    \81\ See id.
    \82\ See id.
    \83\ See id.
    \84\ See id.
---------------------------------------------------------------------------

H. Application and Dissemination of Condition Flags

    DDR represents that, with respect to flags that are applied to
publicly disseminated reports to help prevent a distorted view of the
market, DDR has established the following flags that indicate that
additional information is needed to understand the publicly
disseminated price: Inter-affiliate, Nonstandard flag, Off market flag,
Pricing context, and Compressed trade.\85\ DDR also states that further
information regarding the flags is available in its matrices under the
narrative column.\86\
---------------------------------------------------------------------------

    \85\ See Exhibit GG.1.
    \86\ See id.; see also Exhibits GG.2, GG.4, and GG.6, which are
the matrices that enumerate the required fields and acceptable
values for the submission of trade information into the DDR system.
---------------------------------------------------------------------------

I. Calculation and Maintenance of Positions

    DDR's SDR service would allow DDR to calculate open positions for
persons with open SBS for which DDR maintains records. DDR's policies
and procedures relating to its calculation of positions are provided in
Exhibit DD.

J. Assignment of Unique Identification Codes

    DDR's policies and procedures state that pursuant to Commission
regulation (e.g., Regulation SBSR), all registered SDRs must have a
systemic means of identifying and tracking all products and persons
involved in a SBS transaction, and that Commission regulation (e.g.,
Regulation SBSR) has prescribed 10 identifiers where a UIC shall be
used.\87\ Further, DDR represents that it requires all Users to obtain
a valid LEI where it exists, from an internationally recognized
standards-setting system (``IRSS'') that is recognized by the
Commission, and that, where LEIs are populated, DDR performs a digit
check on the LEI.\88\
---------------------------------------------------------------------------

    \87\ See Exhibit GG.3; see also Exhibit HH.2, Section 4.1.
    \88\ See Exhibit GG.3. DDR also notes that the Commission has
recognized the global Legal Entity Identifier (``LEI'') as an
internationally recognized standards-setting system (``IRSS'').
---------------------------------------------------------------------------

    DDR has proposed that its Users will be required to provide Legal
Entity Identifiers for the following fields: Platform ID, ultimate
parent ID, counterparty ID, broker ID, and execution agent ID.\89\ For
other UICs (transaction ID, branch ID, trading desk ID, trader ID, and
product ID) as discussed further below, DDR has further proposed that
each User will be required to create the identifiers in prescribed
formats, and that it shall be each User's responsibility to maintain
such identifiers (including, but not limited to, any internal mapping
of static data) and to ensure their continued accuracy.\90\
---------------------------------------------------------------------------

    \89\ See id. For counterparty IDs for entities that do not have
an LEI (such as a natural person), DDR has proposed alternative
methods for providing a counterparty ID.
    \90\ See id.
---------------------------------------------------------------------------

K. Transaction ID Methodology

    DDR represents that it accepts transaction IDs in the UTI
field.\91\ To validate the uniqueness of each transaction ID, DDR would
apply a methodology, which it refers to as ``Locks,'' that prevents the
transaction ID from being used for another trade in the same or another
jurisdiction.\92\ However, DDR also represents that it is the
responsibility of the reporting party User to create and provide the
transaction ID on each transaction.\93\
---------------------------------------------------------------------------

    \91\ See Exhibit GG.3.
    \92\ See id.
    \93\ See id.
---------------------------------------------------------------------------

K. Ultimate Parent and Affiliate Information

    DDR represents that it captures the UIC for ultimate parent ID in
DDR's system at the time a User on-boards to DDR as this is static
information that does not vary by trade. DDR requires that each User
provide the LEI of the ultimate parent for each account that is
registered with DDR, with the exception of (1) natural persons who are
not required to provide an LEI for ultimate parent and (2) asset
managers and the funds they manage (for asset managers, if the ultimate
parent LEI of the fund is unavailable, DDR will accept the LEI for the
fund).\94\
---------------------------------------------------------------------------

    \94\ See id.; see also Exhibit HH.2.
---------------------------------------------------------------------------

M. Branch, Trading Desk, and Trader ID

    DDR represents that each User is required to create, among other
identifiers, the branch ID, trading desk ID, and trader ID. With
respect to branch ID, DDR represents that it requires the User to
provide the two digit ISO alpha country code and the two digit
subdivision (city) code where the branch or other unincorporated office
is located. DDR represents that if the User has more than one branch in
the same subdivision (city), the branch ID will also include a single
digit following the country and city code referencing the specific
branch, such as 1 or 2, for example.\95\ DDR represents that it
requires that Users populate the trading desk ID and trader ID fields
using an alphanumeric code with ten characters or less.\96\
---------------------------------------------------------------------------

    \95\ See Exhibit GG.3.
    \96\ See id.
---------------------------------------------------------------------------

N. Product ID

    DDR represents that each User is required to create the product ID.
DDR represents that the product ID for all asset classes will be the
ISDA taxonomy.\97\
---------------------------------------------------------------------------

    \97\ See id.
---------------------------------------------------------------------------

O. Missing UIC Information

    Rule 906(a) of Regulation SBSR requires a registered SDR to
identify any SBS reported to it for which the registered SDR does not
have the counterparty ID and (if applicable) the broker ID, branch ID,
execution agent ID, trading desk ID, and trader ID of each direct
counterparty. Once a day, the registered SDR must send a report to each
participant of the registered SDR (or, if applicable, an execution
agent) identifying, for each SBS to which that participant is a
counterparty, the SBS(s) for which the registered SDR lacks the
counterparty ID and (if applicable) broker ID, branch ID, execution
agent ID, trading desk ID, or trader ID.
    DDR's policies and procedures provide that to assist each User in
identifying and supplying missing UIC information, the User's position
report, which shall be made available each day to all Users, can be
used to identify each SBS transaction for which DDR lacks any of the
required UICs.\98\ DDR further represents that it will utilize a
procedure similar to its process for contacting non-Users to confirm
transactions to attempt to obtain missing UIC information.\99\
---------------------------------------------------------------------------

    \98\ See Exhibit HH.2, Section <IP_ADDRESS>.
    \99\ See id.
---------------------------------------------------------------------------

P. Public Dissemination

    According to DDR, its public price dissemination (``PPD'') solution
provides Users with a way to report prices publicly pursuant to the

Commission regulations for SBS (e.g., Regulation SBSR). DDR's policies
and procedures state that reporting sides are provided with a specific
message (the ``PPD Message''), with which to provide information
required to be disseminated. The PPD Message is available for
dissemination if the fields ``Reporting Obligation Party 1'' or
``Reporting Obligation Party 2'' are populated with ``SEC'' and the
message passes validations.\100\ According to DDR, the PPD platform
will perform validations on every PPD Message submitted, and based on
the result of that validation, it will issue a response to the relevant
parties indicating a positive or negative validation result (i.e., the
``ACK'' or ``NACK'' messages discussed in Section III.E).
---------------------------------------------------------------------------

    \100\ See Exhibit GG.3.
---------------------------------------------------------------------------

    DDR's policies and procedures state that DDR requires a separate
message for public dissemination and for updating the position
record.\101\ DDR's policies and procedures also state that DDR requires
that PPD Messages be sent at the same time as position messages (i.e.,
Primary Economic Terms (``PET''), Confirmation, and/or Snapshot
messages).\102\ Further, DDR's policies and procedures provide that DDR
does not determine whether a PPD Message should be disseminated
publicly, and that any such PPD Message received is disseminated
publicly if it passes validations and is directed to the Commission, as
discussed above.\103\ Further, DDR states that it requires that the
reporting party User provide only PPD Messages that are required to be
disseminated under the regulations.\104\
---------------------------------------------------------------------------

    \101\ See Exhibit GG.3.
    \102\ See id. DDR's User Guide (Exhibit GG.3) also provides
descriptions of each of these types of messages. For example, a PET
message is used to report the full details of the economic terms for
trade and lifecycle events prior to confirmation.
    \103\ See id. and Exhibit HH.2, Section 5.1.2.
    \104\ See id.
---------------------------------------------------------------------------

    DDR represents that the PPD will receive messages with the
following potential entries in the ``Action'' field for a UTI: New,
Modify, and Cancel.\105\ A New message will be the first report for a
trade event submission, and only one UTI with an action of New will be
allowed.\106\ A Modify message will be a valid modification or
correction to an existing trade event that has previously been reported
by a submitting party, and the Modify action will be displayed to the
public as a Cancel of the original submission and a Correction
representing the Modify submission.\107\ A cancel message will instruct
the PPD Platform to cancel the last submission on a particular UTI,
and, if the previous submission has been disseminated, the PPD Platform
will disseminate the cancel with the original dissemination ID
link.\108\
---------------------------------------------------------------------------

    \105\ See Exhibit GG.3.
    \106\ See id.
    \107\ See id.
    \108\ See id. The dissemination ID is a DDR-generated identifier
used to uniquely identify a message without exposing the UTI and
will be used to manage cancellations and corrections.
---------------------------------------------------------------------------

Q. Safeguarding Data, Operational Reliability, and Emergency Authority

    DDR represents that the DDR system is supported by DTCC and relies
on the disaster recovery program maintained by DTCC.\109\ DDR's
policies and procedures provide the key principles below for business
continuity and disaster recovery that DDR follows to enable DDR to
provide timely resumption of critical services should there be any
disruption to DDR business: (i) Achieve recovery of critical services
within a four-hour window with faster recovery time in less extreme
situations; (ii) disperse staff across geographically diverse operating
facilities; (iii) operate multiple back-up data centers linked by a
highly resilient network technology; (iv) maintain emergency command
and out-of-region operating control; (v) utilize new technology which
provides high-volume, high-speed, asynchronous data transfer over
distances of 1,000 miles or more; (vi) maintain processes that mitigate
marketplace, operational and cyber-attack risks; (vii) test continuity
plan readiness and connectivity on a regular basis, ensuring that Users
and third-party vendors/service providers can connect to DDR's primary
and back-up sites; (viii) communicate on an emergency basis with the
market, Users, and government agency decision-makers; and (ix)
evaluate, test, and utilize best business continuity and resiliency
practices.\110\
---------------------------------------------------------------------------

    \109\ See Exhibit HH.2, Section 8.1.
    \110\ See id.
---------------------------------------------------------------------------

    DDR represents that it retains the right to exercise emergency
authority in the event of circumstances determined by DDR to require
such response or upon request by the designated regulators as
applicable, and that any exercise of DDR's emergency authority shall be
adequate to address the nature and scope of any such emergency.\111\
DDR further represents that its CEO shall have the authority to
exercise emergency authority, and that in his/her absence, any other
officer of DDR shall have such authority.\112\ DDR has stated that
circumstances requiring the invocation of emergency authority include,
but are not limited to, occurrences or circumstances: (a) Determined by
DDR to constitute an emergency; (b) which threaten the proper
functioning of the DDR system and the SDR services; or (c) which
materially and adversely affect the performance of the DDR system and
the SDR services.\113\ DDR states that emergencies include, but are not
limited to, natural, man-made and information technology
emergencies.\114\
---------------------------------------------------------------------------

    \111\ See Exhibit HH.2, Section 7.3.
    \112\ See id.
    \113\ See id.
    \114\ See id.
---------------------------------------------------------------------------

    Pursuant to its policies and procedures, DDR shall notify the
designated regulators, as soon as reasonably practicable, of an
invocation of emergency authority or a material system outage is
detected by DDR.\115\ Such notification shall be provided in accordance
with applicable regulations and will include the reasons for taking
such emergency action, how potential conflicts of interest were
minimized and documentation of the decision-making process.\116\
Documentation underlying the emergency shall be made available to the
designated regulators upon request.\117\ DDR also represents that it
shall issue an ``Important Notice'' as to all Users as soon as
reasonably practicable in the event such emergency authority is
exercised.\118\
---------------------------------------------------------------------------

    \115\ See Exhibit HH.2, Section 7.3.
    \116\ See id.
    \117\ See id.
    \118\ See id. An ``Important Notice'' is a formal notice sent to
Users describing significant changes to DDR Rules, DDR Systems or
other processes. See id., Section 12.
---------------------------------------------------------------------------

    DDR represents that it shall avoid conflicts of interest in
decision-making with respect to emergency authority taken.\119\ If a
potential conflict of interest arises, the CCO shall be notified and
consulted for the purpose of resolving the potential conflict.\120\
---------------------------------------------------------------------------

    \119\ See Exhibit HH.2, Section 7.3.
    \120\ See id.
---------------------------------------------------------------------------

    DDR represents that any emergency actions taken by DDR may be
terminated by the CEO and in his/her absence, any other officer of DDR,
and that any such termination of an emergency action will be followed
by the issuance of an Important Notice as soon as reasonably
practicable.\121\
---------------------------------------------------------------------------

    \121\ See id.
---------------------------------------------------------------------------

R. Data Confidentiality; Sensitive Information and Security

    DDR represents that DTCC has established a Technology Risk
Management Team, whose role is to manage information security risk and
ensure the availability, integrity, and confidentiality of the
organization's information assets, but that DDR will be

responsible for monitoring the performance of DTCC with regard to
implementation and maintenance of information security within its
infrastructure.\122\ DDR further represents that various policies have
been developed to provide the framework for both physical and
information security and are routinely refreshed. The Technology Risk
Management Team carries out a series of processes to endeavor to ensure
DDR is protected in a cost-effective and comprehensive manner. This
includes preventative controls such as firewalls, appropriate
encryption technology, and authentication methods. Vulnerability
scanning is used to identify high risks to be mitigated and managed and
to measure conformance against the policies and standards.\123\
---------------------------------------------------------------------------

    \122\ See Exhibit HH.2, Section 9.1.
    \123\ See Exhibit HH.2, Section 9.
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning DDR's Form SDR, including whether DDR has
satisfied the requirements for registration as an SDR. To the extent
possible, commenters are requested to provide empirical data and other
factual support for their views. In addition, the Commission seeks
comment on the following issues:
    1. Please provide your views as to whether DDR's application for
registration as an SDR demonstrates that DDR is so organized, and has
the capacity, to be able to assure the prompt, accurate, and reliable
performance of its functions as an SDR, comply with any applicable
provisions of the securities laws and the rules and regulations
thereunder, and carry out its functions in a manner consistent with the
purposes of Section 13(n) of the Exchange Act and Commission's SDR
rules.
    2. Exchange Act Rule 13n-5(b)(1)(iii) requires every SDR to
establish, maintain, and enforce written policies and procedures
reasonably designed to satisfy itself that the transaction data that
has been submitted to the SDR is complete and accurate. Please provide
your views as to whether DDR's policies and procedures concerning
verification of trade data are sufficiently detailed and reasonably
designed to satisfy DDR that the transaction data that has been
submitted to DDR is complete and accurate, as required by Exchange Act
Rule 13n-5(b)(1)(iii).
    3. Please provide your views as to whether DDR's policies and
procedures to address confirmation of data accuracy and completeness
for bespoke, bilateral SBS transactions (i.e., DDR will attempt to
contact a non-User counterparty to verify the accuracy of a trade if
DDR has been provided with the non-User counterparty's LEI and can
access email contact information for the non-User counterparty in the
static data maintained by the DTCC trade repositories about their
Users) are appropriate and reasonably designed to meet its obligations
under Exchange Act Rule 13n-5(b)(1)(iii).
    4. Please provide your views as to whether DDR's policies and
procedures are sufficiently detailed and reasonably designed to ensure
that the transaction data and positions that it maintains are complete
and accurate, as required by Exchange Act Rule 13n-5(b)(3).
    5. Please provide your views as to whether DDR's policies and
procedures are sufficiently detailed and reasonably designed to ensure
that it has the ability to protect the privacy of SBS transaction
information that it receives, as required by Exchange Act Rule 13n-9.
    6. Please provide your views as to whether DDR's policies and
procedures are sufficiently detailed and reasonably designed to ensure
that it has the ability to calculate positions, as required by Exchange
Act Rule 13n-5(b)(2).
    7. Please provide your views as to whether DDR's policies and
procedures are sufficiently detailed and reasonably designed to provide
a mechanism for Users and their counterparties to effectively resolve
disputes over the accuracy of SBS data that DDR would maintain, as
required by Exchange Act Rule 13n-5(b)(6). Are DDR's policies and
procedures, including with respect to the specified timeframe, relating
to dispute resolution adequate? Why or why not?
    8. Please provide your views as to whether DDR's policies and
procedures are sufficiently detailed and reasonably designed to ensure
that its systems that support or are integrally related to the
performance of its activities provides adequate levels of capacity,
integrity, resiliency, availability, and security, as required by
Exchange Act Rule 13n-6.
    9. Please provide your views as to whether DDR's policies and
procedures are sufficiently detailed and reasonably designed for the
CCO's handling, management response, remediation, retesting, and
closing of noncompliance issues, as required by Exchange Act Rule 13n-
11(c)(7).
    10. Please provide your views as to whether DDR's policies or
procedures could result in an unreasonable restraint of trade or impose
any material anticompetitive burden on the trading, clearing, or
reporting of transactions.
    11. Please provide your views as to whether DDR's proposed dues,
fees, or other charges, discounts or rebates and the process for
setting dues, fees, or other charges, discounts or rebates are fair and
reasonable and not unreasonably discriminatory. Please address whether
such proposed dues, fees, other charges, discounts, or rebates are
applied consistently across all similarly situated users of DDR's
services, including, but not limited to, Users, market infrastructures
(including central counterparties), venues from which data can be
submitted to DDR (including exchanges, SBS execution facilities,
electronic trading venues, and matching and confirmation platforms),
and third party service providers.
    12. Exchange Act Rule 13n-4(c)(2)(i)-(iii) provides that each SDR
(i) shall establish governance arrangements that are well defined and
include a clear organizational structure with effective internal
controls; (ii) must establish governance arrangements that provide for
fair representation of market participants; and (iii) must provide
representatives of market participants, including end-users, with the
opportunity to participate in the process for nominating directors and
with the right to petition for alternative candidates. Please provide
your views as to whether DDR's governance arrangements are appropriate
in light of the requirements of Rule 13n-4(c)(2)(i)-(iii).
    13. Exchange Act Rule 13n-4(c)(3)(i)-(ii) provides that each SDR
must establish, maintain, and enforce written policies and procedures
reasonably designed to identify and mitigate potential and existing
conflicts of interest in the SDR's decision-making process on an
ongoing basis, and, with respect to the decision-making process for
resolving any conflicts of interest, each SDR shall require the recusal
of any person involved in such conflict from such decision-making.
Please provide your views as to whether DDR's policies and procedures
are appropriate in light of the requirements of Exchange Act Rule
Exchange Act Rule 13n-4(c)(3)(i)-(ii).
    14. Rule 903(a) of Regulation SBSR provides, in relevant part, that
if no system has been recognized by the Commission, or a recognized
system has not assigned a UIC to a particular person, unit of a person,
or product, the registered SDR shall assign a UIC to that person, unit
of person, or product using its own methodology. Is the methodology
that DDR proposes to use with respect to UICs as described in its
application materials appropriate in light of the requirements under
Rule

903(a) of Regulation SBSR? Why or why not?
    15. Rule 907(c) of Regulation SBSR requires a registered SDR to
make its Regulation SBSR policies and procedures publicly available on
its Web site. The Commission has stated that this public availability
requirement will allow all interested parties to understand how the
registered SDR is utilizing the flexibility it has in operating the
transaction reporting and dissemination system, and will provide an
opportunity for market participants to make suggestions to the
registered SDR for altering and improving those policies and
procedures, in light of the new products or circumstances, consistent
with the principles set out in Regulation SBSR.\124\ DDR has proposed
to satisfy its obligation under Rule 907(c) of Regulation SBSR by
making the policies and procedures contained in Exhibit GG (including
GG.1 through GG.6) and Exhibit HH.2, and the other application exhibits
referenced therein available on its public Web site. Is the information
that is included in or referenced in GG (including GG.1 through GG.6)
and Exhibit HH.2 appropriate in light of the requirements of Rule
907(c)?
---------------------------------------------------------------------------

    \124\ See Regulation SBSR Adopting Release, 80 FR at 14648.
---------------------------------------------------------------------------

    16. Regulation SBSR imposes duties on various market participants
to report SBS transaction information to a registered SDR. Please
provide your views as to whether the DDR application and the associated
policies and procedures (including technical specifications for
submission of data) provide sufficient information to potential
participants of DDR about how they would discharge these regulatory
duties when reporting to DDR. In particular, please provide your views
as to whether DDR's technical specifications for submission of data are
sufficiently detailed, especially with regard to historical SBSs
(including pre-enactment and transitional SBS) and bespoke SBS. Please
describe in detail what additional information you believe is necessary
to allow you to satisfy any reporting obligation you may incur under
Regulation SBSR.
    17. Rule 906(a) of Regulation SBSR provides, in relevant part, that
a participant of a registered SDR must provide the missing information
with respect to its side of each SBS referenced in the report to the
registered SDR within 24 hours. DDR represents that in order to be
granted access to the DDR system, receive trade information, confirm or
verify transactions, submit messages, or receive reports, a market
participant must be on-boarded as a DDR User. Please provide your views
as to whether this form of access afforded to the non-reporting-side is
fair, open, and not unreasonably discriminatory.
    18. Please provide your views as to whether DDR's policies and
procedures relating to Rule 906(a) are sufficiently detailed,
appropriate and reasonably designed to ensure data accuracy and
completeness, including with respect to the requirement that once a
day, a registered SDR shall send a report to each participant
identifying, for each SBS to which that participant is a counterparty,
the SBS for which the registered SDR lacks counterparty ID and (if
applicable) broker ID, branch ID, execution agent ID, desk ID, and
trader ID.
    19. Please provide your views as to whether DDR's policies and
procedures relating to Rule 905(b) are sufficiently detailed,
appropriate and reasonably designed to ensure data accuracy and
completeness.
    20. Please provide your views as to whether DDR has provided
sufficient information to explain the SBS transaction information that
it would publicly disseminate to discharge its duties under Rule 902 of
Regulation SBSR. Please describe any additional information that you
feel is necessary. Please offer any suggestions generally for how the
publicly disseminated information could be made more useful.
    21. Please provide your views as to whether DDR has provided
sufficient information to explain how Users would be required to report
life cycle events under Rule 901(e). Please describe any additional
information that you feel is necessary. In particular, please indicate
whether you believe DDR's specifications are reasonably designed to
identify the specific data element(s) that change and thus that trigger
the report of the life cycle event.
    22. Please provide your views as to whether DDR has provided
sufficient information about how an agent could report SBS transaction
information to DDR on behalf of a principal (i.e., a person who has a
duty under Regulation SBSR to report). Please describe any additional
information that is necessary. In particular, please provide your views
as to whether DDR should differentiate between agents who are Users of
DDR because they themselves at times are principals (i.e., they are
counterparties to one or more SBSs that are reported to DDR on a
mandatory basis) and agents who are never principals (e.g., a vendor).
    23. Please provide your views as to whether DDR's policies and
procedures for the use of condition flags for transactions having
special characteristics under Rule 907(a)(4) of Regulation SBSR are
consistent with the goal of preventing market participants without
knowledge of these characteristics receiving a distorted view of the
market. Are there additional condition flags that you believe DDR
should utilize? If so, please describe them and why you believe they
are appropriate.
    24. Exchange Act Rule 13n-10 requires that, before accepting any
SBS data from a market participant or upon a market participant's
request, an SDR shall furnish to the market participant a disclosure
document that contains certain written information, which must
reasonably enable the market participant to identify and evaluate
accurately the risks and costs associated with using the SDR's
services. This written information includes the SDR's criteria for
providing others with access to its services and data it maintains, its
criteria for those seeking to connect to or link with it, its
description of its policies and procedures regarding its noncommercial
and/or commercial use of the SBS transaction information that it
receives from a participant, any registered entity, or any other
person, its description of all the SDR's services, including any
ancillary services, and its description of its governance arrangements.
Based on the materials provided in DDR's Form SDR application, please
provide your views as to whether the disclosures provided by the
application are sufficiently detailed to meet the objectives of
Exchange Act Rule 13n-10.
    25. In addition to serving as an SDR for the credit and equity
derivatives asset classes, DDR has applied to serve as an SDR for what
it describes as SBS transactions in the interest rates derivatives
asset class. Please provide your views about DDR's description of this
asset class. Please also provide your views as to whether DDR has
provided sufficient information about how a User reports SBS
transaction information in this asset class. Is this information
provided sufficient? Why or why not? Please describe any additional
information that you believe should be provided.
    26. Exchange Act Rule 13n-4(b)(5) requires that an SDR shall
provide direct electronic access to the Commission (or any designee of
the Commission, including another registered entity). Based on the
materials provided in DDR's Form SDR application, please provide your
views as to whether DDR's policies and procedures are sufficient to
meet the

objectives of Exchange Act Rule 13n-4(b)(5).
    27. Rule 901(i) of Regulation SBSR provides that a person must
report information about a pre-enactment SBS or transitional SBS ``to
the extent that information about such transaction is available.'' Is
it clear that DDR's policies and procedures, including regarding
validations, will allow parties to submit transaction records for pre-
enactment SBS and transitional SBS with data elements missing, pursuant
to Rule 901(i)?
    28. Please provide your views as to whether DDR's policies and
procedures relating to how it would conduct validations of transaction
records for historic and newly executed SBS are sufficiently detailed
to meet the objectives of Exchange Act Rule 13n-5(b)(1)(iii), and what
further clarifications, if any, you believe would be appropriate.
    Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/proposed.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SBSDR-2016-02 on the subject line.

Paper Comments

     Send paper comments to Brent J. Fields, Secretary,
Securities and Exchange Commission, 100 F Street NE., Washington, DC
20549-1090. All submissions should refer to File Number SBSDR-2016-02.
    To help the Commission process and review your comments more
efficiently, please use only one method of submission. The Commission
will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/other.shtml).
    Copies of the Form SDR, all subsequent amendments, all written
statements with respect to the Form SDR that are filed with the
Commission, and all written communications relating to the Form SDR
between the Commission and any person, other than those that may be
withheld from the public in accordance with the provisions of 5 U.S.C.
552, will be available for Web site viewing and printing in the
Commission's Public Reference Section, 100 F Street NE., Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m.
    All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SBSDR-2016-02 and
should be submitted on or before August 8, 2016.

Brent J. Fields,
Secretary.
[FR Doc. 2016-16112 Filed 7-6-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 127 (Tuesday, July 5, 2022)]
[Notices]
[Page 39812]
[FR Doc No: 2022-14171]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER22-2187-000]

Northwest Ohio Solar, LLC; Supplemental Notice That Initial
Market-Based Rate Filing Includes Request for Blanket Section 204
Authorization

    This is a supplemental notice in the above-referenced proceeding of
Northwest Ohio Solar, LLC's application for market-based rate
authority, with an accompanying rate tariff, noting that such
application includes a request for blanket authorization, under 18 CFR
part 34, of future issuances of securities and assumptions of
liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street NE, Washington,
DC 20426, in accordance with Rules 211 and 214 of the Commission's
Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Anyone
filing a motion to intervene or protest must serve a copy of that
document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is July 17, 2022.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically may mail similar pleadings to
the Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426. Hand delivered submissions in docketed
proceedings should be delivered to Health and Human Services, 12225
Wilkins Avenue, Rockville, Maryland 20852.
    In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (http://www.ferc.gov) using
the ``eLibrary'' link. Enter the docket number excluding the last three
digits in the docket number field to access the document. At this time,
the Commission has suspended access to the Commission's Public
Reference Room, due to the proclamation declaring a National Emergency
concerning the Novel Coronavirus Disease (COVID-19), issued by the
President on March 13, 2020. For assistance, contact the Federal Energy
Regulatory Commission at [email protected] or call toll-free,
(886) 208-3676 or TYY,<PHONE_NUMBER>.

    Dated: June 28, 2022.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2022-14171 Filed 7-1-22; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 87, Number 151 (Monday, August 8, 2022)]
[Notices]
[Pages 48175-48176]
[FR Doc No: 2022-16921]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RM98-1-000]

Records Governing Off-the-Record Communications; Public Notice

    This constitutes notice, in accordance with 18 CFR 385.2201(b), of
the receipt of prohibited and exempt off-the-record communications.
    Order No. 607 (64 FR 51222, September 22, 1999) requires Commission
decisional employees, who make or receive a prohibited or exempt off-
the-record communication relevant to the merits of a contested
proceeding, to deliver to the Secretary of the Commission, a copy of
the communication, if written, or a summary of the substance of any
oral communication.
    Prohibited communications are included in a public, non-decisional
file associated with, but not a part of, the decisional record of the
proceeding. Unless the Commission determines that the prohibited
communication and any responses thereto should become a part of the
decisional record, the prohibited off-the-record communication will not
be considered by the Commission in reaching its decision. Parties to a
proceeding may seek the opportunity to respond to any facts or
contentions made in a prohibited off-the-record communication and may
request that the Commission place the prohibited communication and
responses thereto in the decisional record. The Commission will grant
such a request only when it determines that fairness so requires. Any
person identified below as having made a prohibited off-the-record
communication shall serve the document on all parties listed on the
official service list for the applicable proceeding in accordance with
Rule 2010, 18 CFR 385.2010.
    Exempt off-the-record communications are included in the decisional
record of the proceeding, unless the communication was with a
cooperating agency as described by 40 CFR 1501.6, made under 18 CFR
385.2201(e)(1)(v).
    The following is a list of off-the-record communications recently
received by the Secretary of the Commission. The communications listed
are grouped by docket numbers in ascending order. These filings are
available for electronic review at the Commission in the Public
Reference Room or may be viewed on the Commission's website at http://www.ferc.gov using the eLibrary link. Enter the docket number,
excluding the last three digits, in the docket number field to access
the document. For assistance, please contact FERC Online Support at
[email protected] or toll free at<PHONE_NUMBER>, or for TTY,
contact<PHONE_NUMBER>.

------------------------------------------------------------------------
                                                        Presenter or
            Docket Nos.                File date          requester
------------------------------------------------------------------------
Prohibited:
    1. P-405-000..................       7-21-2022  FERC Staff \1\.
    2. CP16-10-000, CP21-57-000...       7-25-2022  FERC Staff \2\.

    3. CP16-10-000, CP21-57-000...       7-25-2022   FERC Staff \3\.
    4. CP16-10-000, CP21-57-000...       7-25-2022  FERC Staff \4\.
    5. CP16-10-000, CP21-57-000...       7-25-2022  FERC Staff \5\.
    6. CP16-10-000, CP21-57-000...       7-25-2022  FERC Staff \6\.
    7. CP16-10-000, CP21-57-000...        8-1-2022  FERC Staff \7\.
Exempt:
    8. CP17-117-000, CP17-118-000.       7-27-2022  U.S. Congressman
                                                     Clay Higgins.
    9. CP22-466-000...............       7-27-2022  FERC Staff \8\.
------------------------------------------------------------------------
\1\ Emailed comments dated 7/16/2022 from Alex Balboa and Margaret
  Hurley.
\2\ Emailed comments dated 2/17/2022 from Colleen Wysser-Martin.
\3\ Emailed comments dated 2/20/2022 from Colleen Wysser-Martin.
\4\ Emailed comments dated 3/22/2022 from Colleen Wysser-Martin.
\5\ Emailed comments dated 3/26/2022 from Colleen Wysser-Martin.
\6\ Emailed comments dated 7/25/2022 from Colleen Wysser-Martin.
\7\ Emailed comments dated 8/1/2022 from Robert E. Rutkowski.
\8\ Conference call memo dated 11/18/20 regarding call on 7/13/2022 with
  U.S. Fish and Wildlife Service, et al.

---------------------------------------------------------------------------

    .

    Dated: August 2, 2022.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2022-16921 Filed 8-5-22; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 77, Number 80 (Wednesday, April 25, 2012)]
[Notices]
[Page 24697]
[FR Doc No: 2012-9958]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER12-1562-000]

 Somerset Operating Company, LLC; Supplemental Notice That
Initial Market-Based Rate Filing Includes Request for Blanket Section
204 Authorization

    This is a supplemental notice in the above-referenced proceeding of
Somerset Operating Company, LLC's application for market-based rate
authority, with an accompanying rate tariff, noting that such
application includes a request for blanket authorization, under 18 CFR
part 34, of future issuances of securities and assumptions of
liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426, in accordance with Rules 211 and 214 of the Commission's
Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Anyone
filing a motion to intervene or protest must serve a copy of that
document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is May 9, 2012.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with Internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
14 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First Street NE., Washington, DC 20426.
    The filings in the above-referenced proceeding are accessible in
the Commission's eLibrary system by clicking on the appropriate link in
the above list. They are also available for review in the Commission's
Public Reference Room in Washington, DC. There is an eSubscription link
on the Web site that enables subscribers to receive email notification
when a document is added to a subscribed docket(s). For assistance with
any FERC Online service, please email<EMAIL_ADDRESS>or
call<PHONE_NUMBER> (toll free). For TTY, call<PHONE_NUMBER>.

    Dated: April 19, 2012.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2012-9958 Filed 4-24-12; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 79, Number 143 (Friday, July 25, 2014)]
[Notices]
[Page 43494]
[FR Doc No: 2014-17481]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2007-N-0220]

Agency Information Collection Activities; Announcement of Office
of Management and Budget Approval; Guidance for Industry--
Pharmacogenomic Data Submissions

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The Food and Drug Administration (FDA) is announcing that a
collection of information entitled ``Guidance for Industry--
Pharmacogenomic Data Submissions'' has been approved by the Office of
Management and Budget (OMB) under the Paperwork Reduction Act of 1995.

FOR FURTHER INFORMATION CONTACT: FDA PRA Staff, Office of Operations,
Food and Drug Administration, 8455 Colesville Rd., COLE-14526, Silver
Spring, MD 20993-0002<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: On May 9, 2014, the Agency submitted a
proposed collection of information entitled ``Guidance for Industry--
Pharmacogenomic Data Submissions'' to OMB for review and clearance
under 44 U.S.C. 3507. An Agency may not conduct or sponsor, and a
person is not required to respond to, a collection of information
unless it displays a currently valid OMB control number. OMB has now
approved the information collection and has assigned OMB control number
0910-0557. The approval expires on July 31, 2017. A copy of the
supporting statement for this information collection is available on
the Internet at http://www.reginfo.gov/public/do/PRAMain.

    Dated: July 21, 2014.
Leslie Kux,
Assistant Commissioner for Policy.
[FR Doc. 2014-17481 Filed 7-24-14; 8:45 am]
BILLING CODE 4164-01-P