TR Question 57: Procedure for terminating ‘dead trades’ by TRs [last update 28 January 2021]
Procedure for terminating ‘dead trades’ by TRs
(a) What actions should be undertaken with regards to outstanding derivatives records at a trade repository when the reporting counterparty ceases to exist without being acquired or merged, i.e. it is dissolved?
(b) What actions should be undertaken with regards to outstanding derivatives records at a trade repository when the reporting counterparty has been dissolved and has not terminated them?
TR Answer 57
(a) Where a counterparty ceases to exist, without being acquired or merged, no derivatives should remain outstanding at the trade repository.
If the reporting counterparty reports directly to the TR, and notifies the TR in order to cancel its membership, the TR should liaise with the reporting counterparty to terminate the relevant derivatives, while it is still active, by submitting reports with action types “ETRM” where the termination date is at the latest the date of the dissolution of the reporting counterparty.
If the reporting counterparty does not report directly to the TR, and the entity responsible for reporting (ERR) or report submitting entity (RSE) notifies the TR, the TR should liaise with that entity to terminate the relevant derivatives, while the reporting counterparty is still active, by submitting reports with action types “ETRM” where the termination date is at the latest the date of the dissolution of the reporting counterparty.