Saudi Arabian Monetary Authority (SAMA) Trade Repository (TR) Operator Rules and Regulations.

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Definitions

The following terms and phrases, where used in these Rules and Regulations, shall have the corresponding meanings, unless the context requires otherwise:

SAMA: the Saudi Arabian Monetary Authority.

Derivative Position Information: information about positions relating to Derivative Transactions reported in accordance with the Reporting Requirements.

Derivative Trade Data: includes Derivative Transaction Information and Derivative Position Information.

Linked Entities: other Derivative Trade Repositories, payment systems, central securities depositories, securities settlement systems, central counterparties and other service providers (e.g. collateral management, portfolio reconciliation or portfolio compression service providers) with which the Operator has operational and contractual arrangements in connection with the acceptance, retention, use, disclosure and provision of access to Derivative Trade Data.

Non-Trade Reporting Services: means services other than Trade Reporting Services, and includes Ancillary Services.

Operator: an entity that is authorised by SAMA to operate a derivative trade repository.

Participant: an Entity that reports Derivative Transaction Information or Derivative Position Information, to which a Trade Repository provides Trade Reporting Services.

Reporting Entity: an entity that is required to report Derivative Transaction Information or Derivative Position Information in accordance with SAMA Reporting Requirements.

Reporting Requirements: reporting requirements as prescribed in SAMA Trade Repository Guidelines.

Rules and Regulations: these derivative trade repository Rules and Regulations.

Trade Reporting Services: all services provided by the Trade Repository for the acceptance, retention, use, disclosure and provision of access to Derivative Trade Data, including any services for the acceptance, retention, use, disclosure and provision of access to Derivative Trade Data.

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General Requirements

The Trade Repository (TR) is required to meet the governance and operational standards recommended by the Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) including standards relating to governance, market transparency and data availability, operational reliability, access and participation, safeguarding of data, timely recordkeeping and communication procedures and standards.

Asset Classes

SAMA determines the classes of derivative for which reporting requirements could be made. The broad asset classes of derivatives which may be subject to reporting requirements are:

(a) Interest rates;

(b) Credit;

(c) Equities;

(d) Foreign exchange; and

(e) Commodity derivatives

The Trade Repository must be in a position to accept derivative trade reports for all asset classes specified above. SAMA may require the reporting requirements for these asset classes be implemented by the operator in different phases. Trade Repository reporting service for any additional asset classes beyond those specified above would need SAMA’s approval.

Access and Participation Requirements

(1) Operator must have and apply objective conditions for access to and participation in the Trade Repository’s services that permit open and non-discriminatory access to and participation in the Trade Repository by Participants.

(2) The access and participation conditions referred to in (1) above must include conditions reasonably designed to ensure Participants do not pose undue risks to the secure, efficient and effective operation of the Trade Repository.

(3) The access and participation conditions referred to in (1) above, other than the conditions in (2), must not unreasonably prohibit or limit access to or participation in the Trade Repository and the Operator must not impose unreasonable conditions on participation or access.

(4) Operator must monitor compliance with its access and participation conditions on an ongoing basis and have clearly defined procedures for dealing with a participant that breaches or no longer meets the access or participation conditions.

Cyber Security, Efficiency, Effectiveness and resilience of Services

Operator must consider the need of high availability of business operations and enhance the resilience capability to ensure continuity and availability of the operations and services. Therefore, the operator must comply with SAMA Business Continuity Framework and, at a minimum, ensure;

(1) That the Trade Repository’s services are provided at all times in a secure, efficient and effective manner.

(2) To establish, implement, maintain and enforce mechanisms for regularly reviewing whether the Trade Repository is efficient and effective in meeting the requirements of participants, SAMA, and the markets it serves.

(3) To address cyber security risks and ensure it properly maintains the protection of operators’ assets. In this regard, the operator is required to comply with SAMA Cyber Security Framework and periodically assess and evaluate the effectiveness of the framework controls against the maturity level requested by SAMA.

(4) To define and develop data classification in an organized categories to assign a level of sensitivity to data. The operator’s data classification should ensure its confidentiality, integrity, and availability based on need-to-know principles and;

(5) To implement adequate mechanism to ensure the privacy of the data collected in the Trade Repository

Note: For example, Operator should regularly review its minimum service levels, operational reliability, cost-effectiveness pricing, and controls.

Acceptance of Derivative Trade Data

(1) Operator must accept from Participants Derivative Trade Data for all classes of Derivatives specified in this Rules and Regulations.

(2) Operator must establish, implement, maintain and enforce policies, procedures, systems and controls for the reporting of Derivative Trade Data to the Trade Repository.

(3) Without limiting (2) above, Operator must establish, implement, maintain and enforce policies, procedures, systems and controls:

(a) reasonably designed to maintain a continuous, reliable and secure connection between the Trade Repository and Participants for the purposes of accepting Derivative Trade Data; and

(b) designed to provide reasonable assurance that Derivative Trade Data reported to the Trade Repository by Participants is and remains at all times complete, accurate and current.

Retention of Derivative Trade Data

(1) Operator must ensure that all Derivative Trade Data accepted by the Trade Repository, and each alteration and correction to that Derivative Trade Data, is recorded on a timely basis.

(2) Operator must retain all records of Derivative Trade Data accepted by the Trade Repository, and records of each alteration or correction to that Derivative Trade Data, from the date the record is first made until ten years have elapsed since the Derivative to which the record relates expires or terminates.

(3) Operator must ensure that each record referred to in (2) above is, for the period of time that the record must be retained in a secure location and in an electronic format, and is immediately accessible by the Operator and SAMA.

(4) Operator must create at least one backup copy of each record referred to in (2) above and must ensure that, for the period of time that the record must be retained, the backup copy is retained in a secure location and in an electronic format, separate from the location of the record, and is accessible by the Operator and SAMA within 3 business days.

Provision of Access to Derivative Trade Data

(A) Participant Access

(1) Operator must provide each Participant with access to the records of the Derivative Trade Data that the Participant has reported to the Trade Repository, including access for the purposes of making necessary corrections or alterations to that Derivative Trade Data.

(2) To the extent not provided under (1) above, Operator must provide each Participant with access to the records of each Derivative for which the Participant is a counterparty.

(3) Operator must ensure that its rules, procedures and contractual arrangements relating to the provision of access to Derivative Trade Data clearly define the categories of access available to Participants, if there is more than one category.

(4) Operator is not required to provide access under this condition to an entity that is suspended from being, or has ceased to be, a Participant in the Trade Repository by SAMA.

Note: Operator’s rules, procedures and contractual arrangements must also clearly define the rights and obligations of Participants with respect to the provision of access to Derivative Trade Data.

(B) Provision of Access to Saudi Arabian Monetary Authority (SAMA)

(5) Operator must provide SAMA, if requested by SAMA and at no charge, continuous, direct and immediate electronic access to the following information retained in the Trade Repository:

(a) All Derivative Trade Data reported by Participants in accordance with the Reporting Requirements; and

(b) All information (including statistical data) that is created or derived from Derivative Trade Data referred to in (a) above.

Note 1: Direct access may be provided through an electronic system, platform or framework that provides secure internet or web-based access to Derivative Trade Data, or by way of a direct real-time feed of Derivative Trade Data.

Note 2: Under this condition, Operator will be required to provide access to aggregate-level data, position-level data and transaction-level data (including the identity of counterparties).

(6) If the Operator receives a request from SAMA for Derivative Trade Data retained in the Trade Repository, including a request for Derivative Trade Data referred to in (5) above, it must comply with any such requirement specified in the request to provide the Derivative Trade Data:

(a) On an ad hoc or periodic basis, or each time a particular circumstance or event occurs;

(b) By a specified time; and/or

(c) In a specified format.

(7) If the Operator receives a request from any party other than SAMA (Domestic or Foreign) for Derivative Trade Data retained in the Trade Repository, it must first obtain SAMA’s permission before such request is processed.

Publication of Statistical Data

(A) Obligation to Create and Disclose Weekly Statistical Data

(1) Operator must create and disclose statistical data on Derivative Trade Data that is retained in the Trade Repository and that was reported to the Trade Repository by Participants.

(2) For the purposes of (1) above, Operator must, for each 7-calendar day period commencing from the day it first accepts a report of Relevant Derivative Trade Data, create the following statistical data from the Relevant Derivative Trade Data:

(a) All aggregate open positions as at the end of the last day in the Relevant Period for which the statistical data is created; and

(b) Volumes by number and by value of Derivative Transactions reported during the Relevant Period.

(3) The statistical data created in accordance with (2) above must include breakdowns by the following categories.

(a) The asset class, currency of the notional amount, type and maturity of the Derivatives to which the statistical data relates;

(b) The geographic location of the reference asset, rate, index, commodity or other thing underlying the Derivatives to which the statistical data relates; and

(c) Whether the Derivatives to which the statistical data relates are cleared or uncleared.

(4) Operator must disclose the statistical data required under (1)–(3) above in relation to a Relevant Period, from a day that is between 3–5 business days after the day on which the Relevant Period ends.

(5) Operator must disclose the statistical data required under (1)–(3) by making the statistical data available at no charge and through a publicly accessible website.

(6) The statistical data published under this condition must not include Derivative Trade Data capable of identifying a counterparty to a Derivative Transaction.

(B) Permission to Create and Disclose Financial Year-to-Date Statistical Data

(7) Operator must publish the weekly statistical data created and disclosed in accordance with the above paragraphs aggregated in financial-year-to-date form, by making the aggregated financial year-to-date statistical data available at no charge and through a publicly accessible website.

(8) The statistical data published under this condition must not include Derivative Trade Data capable of identifying a counterparty to a Derivative Transaction.

Governance, Management and Resources

(A) Governance

(1) Operator must establish, implement, maintain and enforce documented arrangements for the governance and management of the Trade Repository that are clear and transparent, promote the secure, efficient and effective operation of the Trade Repository, and support the stability of the broader financial system, other relevant public interest considerations, and the objectives of Participants.

(2) The governance arrangements referred to in (1) above must provide for:

(a) Clear and direct lines of accountability in the governance and management of the Trade Repository;

(b) Clearly defined roles and responsibilities for Operator’s employees, management, and members of its Board of Directors in the governance and management of the Trade Repository, including roles and responsibilities in relation to the identification, measurement, monitoring and management of risks;

(c) Clearly defined decision-making processes, including processes for:

(i) Decision making in crises and emergencies; and

(ii) Ensuring significant decisions in relation to the design, rules or overall strategy of the Trade Repository are made taking into account the objectives of Participants and, where appropriate, are disclosed to Participants; and

(d) Internal control functions to be exercised by persons with adequate authority, independence, resources, and access to the governing body and senior management to perform the control function.

Note: For example, internal control functions include risk, compliance, audit and other review functions.

(B) Handling of Conflicts of Interest

(3) Operator must establish, implement, maintain and enforce documented arrangements for identifying and effectively managing (including by avoiding, controlling or disclosing) any actual or potential conflicts between:

(a) The interests of the Operator, its related bodies corporate or members of its Board of Directors, and the interests of Participants;