GTR CFTC/Canada/SEC (NoA): Change of Counterparty
The Action Type rules make it impossible to exit a trade and resubmit while retaining the same Trade Identifier(s) (UTI/USI).
- Per the CFTC Technical Spec: “In the case of a corporate event of the non-reporting counterparty, the transaction should be reported as Modify-Trade (MODI-TRAD) combination.”
- CFTC recommends firms use the CORR action type to update an incorrect submission of TP2. GTR also allows submitters to submit an EROR followed by a NEWT (with a new UTI) to correct a mis-reported TP2.
- With the change to Trade Uniqueness, both submissions (MODI or CORR with different TP2 from the NEWT submission) are possible.
Please see examples below comparing current application behavior with updated functionality after December 3, 2022:
| Merger involving Change of Counterparty 2 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Case | Scenario | Action Type | Event Type | UTI | Counterparty1 (Reporting Counterparty) | Counterparty2 | Response | Comments |
| Corporate action affecting Counterparty2 | CFTC Expected Behavior | NEWT | TRAD | UTI1 | LEIa | LEIb | ACK | New trade between LEIa and LEIb |
| MODI | TRAD | UTI1 | LEIa | LEIc | ACK |
|
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| Correction of incorrect submission of Counterparty 2 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Case | Scenario | Action Type | Event Type | UTI | Counterparty1 (Reporting Counterparty) | Counterparty2 | Response | Comments |
| Change Counterparty2 to correct an incorrect Submission | CFTC Expected Behavior | NEWT | TRAD | UTI1 | LEIc | LEId | ACK | Original incorrect submission |
| CORR | N/A | UTI1 | LEIc | LEIe | ACK | Update to Counterparty2 | ||