Common use of Error Reporting Clause in Contracts

Error Reporting. SEC Rule 613(e)(6) requires the prompt correction of errors in data submitted to the Central Repository. As discussed in Appendix C, Time and Method by which CAT Data will be Available to Regulators, initial validation, lifecycle linkages, and communications of errors to CAT Reporters will be required to occur by 12:00 p.m. Eastern Time T+1 and corrected data will be required to be resubmitted to the Central Repository by 8:00 a.m. Eastern Time on T+3. Each of the Bidders indicated that it was able to meet these timeframes. However, the industry expressed concern that reducing the error repair window will constitute a significant burden to Data Submitters and also question whether the proposed error correction timeframe is possible.37 Financial Information Forum (“FIF”) supports maintaining the current OATS Error Handling timelines, which allows for error correction within five OATS business days from the date of original submission.38 Securities Industry and Financial Markets Association (“SIFMA”) also recommends a five-day window for error correction.39 Nevertheless, the Participants believe that it is imperative to the utility of the Central Repository that corrected data be available to regulators as soon as possible and recommend the three-day window for corrections to balance the need for regulators to access corrected data in a timely manner while considering the industry’s concerns.