Trade Repository Reporting and Risk Mitigation Requirements for Over-the-Counter (OTC) Derivatives Contracts

Keeping of records 20. A reporting bank must keep records that enable the reporting bank to demonstrate it has complied with these requirements. 21. A reporting bank must keep the records for a period of at least ten (10) years from the date the record is made or amended. 3.1.7 Technical Support 22. The SAMA authorized TR shall provide the reporting banks with technical reporting guidelines/manual for its systems/reporting tools. All enquiries relating to technical support should be directed to the SAMA authorized TR. 4. Section B 4.1 Risk Mitigation Requirements for Non-Centrally Cleared Over-The-Counter (OTC) Derivative Contracts 4.1.1 Trading Relationship Documentation 1. The trading relationship documentation should: a. Provide legal certainty for non-centrally cleared over-the-counter derivatives contracts; b. Include all material rights and obligations of counterparties concerning their trading relationship with regard to non-centrally cleared over-the-counter derivatives contracts. Such rights and obligations of the counterparties may be incorporated by reference to other documents in which they are specified; and c. Be executed in writing or through other equivalent non-rewritable, nonerasable electronic means (without prejudice to subparagraph (b) above). 2. The material rights and obligations referred to in paragraph 1(b), where relevant, may include: a) Payment obligation; b) Netting of payments; c) Events of default or other termination events (For instance, any rights to early termination) d) Calculation and any netting of obligations upon termination; e) Transfer of rights and obligations; f) Governing law; g) Processes for confirmations, valuation, portfolio reconciliation and dispute resolution; and h) Matters related to credit support arrangements (e.g. initial and variation margin requirements, types of assets that may be used for satisfying such margin requirements and any asset valuation haircuts, investment and rehypothecation terms for assets posted to satisfy such margin requirements, guarantees and custodial arrangements for margin assets such as whether margin assets are to be segregated with a third party custodian). 3. The retention period for trading relationship documentation should be a minimum of ten (10) years after the termination, maturity or assignment of any non-centrally cleared over-the-counter derivatives contracts.