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Federal Register / Vol. 86, No. 26 / Wednesday, February 10, 2021 / Notices in a format that can be ingested by DDR, failing to meet jurisdictional requirements or failing to provide required data elements.72 A rejected submission is deemed not to have been submitted at all with respect to reporting to the jurisdiction for which it was rejected it is possible that one transaction record is submitted to comply with reporting in more than one jurisdiction and may be acceptable for one jurisdiction, but rejected for the other.73 Upon submission, the DDR
System will perform validation checks to ensure that each submitted record is complete and accurate, in accordance DDRs message ingestion requirements.74 This process is completed through validation and consistency checks.75 If the record fails these validation or consistency checks, the record will be rejected, and such rejection status will be communicated to the users to correct and re-submit.76
According to DDR, the SDR process is an end-to-end straight through process;
from the receipt of data, processing and maintenance of data, and dissemination of data, processes are automated and do not require manual intervention; this straight through processing model is a key mitigant to modification or invalidation of any data.77
DDRs Operating Procedures provides that DDR and each user agrees that each will treat as confidential both during and after the termination of a users access to DDRs system all confidential information defined as: i With respect to DDR, transaction data specified in records received by DDR and any data, reports, summaries or payment amounts which may be produced as a result of processing such transaction data, and ii with respect to any user, the technical specifications of DDRs system to the extent not publicly disclosed by DDR; but confidential information does not include data distributed to the public in accordance will applicable law.78
D. Fees The application includes DDRs fee schedules.79 There are two types of fees, Position Maintenance Fees and Account 72 Rulebook,
Ex. HH, sec. 1.3.

73 Id.
74 Id.

at sec. 10.1.1.

75 Id.
76 Id.
77 Ex.

EE.

78 Rulebook,
Ex. HH, app. A, sec. 8; see also Disclosure Document, Ex. D6, sec. 5 DDRs privacy and confidentiality policies and procedures.
79 See Ex. M. Additionally, DDR provides a fee schedule for DDR Users on its website at http
www.dtcc.com/derivatives-services/global-traderepository/gtr-us.

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Management Fees.80 DDR charges a monthly Position Maintenance Fee, based on the number of positions open at any time during the applicable month and which decreases as the number of open positions increases on a tiered basis.81 Position count includes positions even if terminated or exited prior to the month end.82 Platforms, as that term is defined by Commission rules,83 are not charged position maintenance fees.84 For a position where a clearing agency Clearer is a counterparty, the Clearer shall be responsible for the Position Maintenance Fee, less a 75%
reduction.85 For all other positions, the Reporting Side, as that term is defined by Commission rules,86 will be responsible for Position Maintenance Fees.87 For entities grouped as a single account with subaccounts Grouped Accounts, positions will be aggregated for purposes of determining position count threshold and to determine the applicable tiered Position Maintenance Fees.88
In addition to the Position Maintenance Fee, the application indicates that DDR will charge an annual Account Management Fee, currently set at $1,200.00, that will apply to all accounts and will be prorated in the year the account is opened.89 Accounts may be set up on an individual entity basis or, in certain instances, as Grouped Accounts, such as a corporate family 90 that chooses to structure its account as a single account with subaccounts for affiliates or an asset manager that chooses to structure its account as a single account with subaccounts for its managed funds.
Grouped Accounts will be charged one Account Management Fee.91
80 See
Ex. M.
Position Maintenance Fees only apply for a position count of five hundred or more open positions during any month. See id. For examples of the calculation of the Position Maintenance Fee, see Annex A to Exhibit M of the application.
82 See Ex. M.
83 See 17 CFR 242.900v defining platform as a national securities exchange or security-based swap execution facility that is registered or exempt from registration.
84 See Ex. M.
85 See id.
86 See 17 CFR 242.900gg defining reporting side as the side of a security-based swap identified by Rule 901a2 as having the duty to report the transaction.
87 See Ex. M.
88 See id.
89 See id.
90 DDR organizes its users into families each, a Family as directed by the users through User Agreements or in such other manner as designated by DDR from time to time that desire to be so organized. See Rulebook, Ex. HH, app. A, sec. 2.
91 See id.
81 The
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DDRs fee policy further provides that users will have the option to elect to enter into a long-term commitment for a period ending December 31, 2024
Long Term Commitment, which would reduce the applicable Position Maintenance Fee and Account Management Fee by ten percent, exclusive of tax, for the duration of the Long-Term Commitment.92 If the Long Term Commitment is terminated prior to the end of the applicable Long Term Commitment period, DDR explains that the non-Clearer User will be subject to an early termination fee equal to: a The difference between the total amount of fees due after application of the Long Term Commitment incentive and the total amount of fees that would have been due during the applicable portion of the Long Term Commitment period had no incentive been provided Total Incentive Provided; plus b the greater of five percent of the Total Incentive Provided or $500.00.93
E. Recordkeeping The DDR Rulebook provides that DDR
will maintain all information as required by applicable law as well as maintain swap and security-based swap data throughout the existence of the swap and security-based swap and for 15 years following termination of the swap or security-based swap or as otherwise required by applicable regulations.94 The records will be readily accessible throughout the life of a swap or security-based swap and for 5 years following its termination and shall be in an electronic format that is non-rewriteable and non-erasable.95 For the remainder of the retention period, the swap or security-based swap record will be retrievable within 3 business days.96 In the event DDR ceases doing business or ceases to be a registered or designated trade repository it shall continue, for a period of not less than five 5 years or upon transfer to the Designated Regulator or its designee or another registered or designated trade repository for that jurisdiction, to preserve, maintain, and make accessible to each Designated Regulator or its designee, the records and data required by Applicable Regulation in accordance with DDRs Wind-Down Policies and Procedures document.97
92 See
id.
id.
94 Rulebook, Ex. HH, sec. 1.4.1.
95 Id.
96 Id.
97 Id.
93 See
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