Regulatory Alerts2021-03-23
Trade Repository Reporting and Risk Mitigation Requirements for Over-the-Counter (OTC) Derivatives Contracts
Issued by the Saudi Central Bank (SAMA), these requirements mandate that all licensed banks in Saudi Arabia report over-the-counter derivative transactions to an authorized Trade Repository and implement specific risk mitigation measures for non-centrally cleared contracts. Section A establishes a T+1 reporting timeline, direct electronic submission without outsourcing, standardized data templates, and mandatory ten-year record-keeping to ensure accurate trade lifecycle tracking. Section B obligates banks to maintain legally certain trading relationship documentation, execute timely two-way trade confirmations, perform periodic portfolio reconciliation and compression, and apply robust valuation processes to mitigate counterparty risk.
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