In August, KOR received its license from the Securities and Exchange Commission (SEC) to operate as a Securities Based Swap Data Repository (SBSDR) and Securities Information Processor (SIP)—a milestone that positions it squarely within a particularly exclusive segment of the U.S. derivatives reporting environment.
This achievement makes KOR only the second SBSDR in the country to extend coverage across all asset classes. Obtaining this authorization represents more than just a new designation; it addresses a critical market gap by offering regulated firms an alternative reporting repository at a time when they face growing pressure to meet stringent transparency and compliance standards.
This development comes within the broader context of the complex U.S. regulatory landscape shaped in large part originally by the Dodd-Frank Act. Financial institutions, already accustomed to operating under the oversight of the Commodity Futures Trading Commission (CFTC), must also navigate the SEC’s distinct requirements for securities-based swaps. Meeting these multiple layers of compliance often demands substantial operational effort and advanced technological capabilities.
Under these circumstances, securing the SEC license is a significant step for KOR, as it provides financial institutions with a new option that can help them more efficiently fulfil their obligations under SEC rules. By doing so, KOR enters a domain historically dominated by a limited number of providers.
The pressures driving this need for more robust reporting tools and reliable repository partners have steadily intensified. As regulatory regimes continue to evolve, participants in the derivatives market are expected to produce timely, accurate, and comprehensive transaction data. The Dodd-Frank reforms, specifically, sought to bring greater oversight and transparency to derivatives trading activities—objectives that require the presence of well-structured reporting infrastructures.
In this environment, adding a second SBSDR that spans all asset classes may prove advantageous not just for individual institutions seeking new solutions, but also for the overall health of the market. KOR’s entry, therefore, is more than a routine licensing event: it represents a potential catalyst for improved competitive dynamics, user experience enhancements and evolving best practices in U.S. trade reporting.
Expanding U.S. Regulatory Reach
With the SEC authorization in place, KOR now offers a dual framework that merges its original Commodity Futures Trading Commission (CFTC) SDR registration with this new SBSDR license. By consolidating oversight across both the CFTC and SEC domains, KOR’s platform enables participants to report their derivatives trades under a single, integrated solution. Such synergy is particularly meaningful given the complexity and fragmentation that often arise in U.S. derivatives reporting. Rather than managing separate reporting processes and infrastructures for different regulatory bodies, market participants can now leverage a unified service that encompasses a full spectrum of asset classes.
Before KOR’s emergence, financial institutions had historically relied on a single dominant provider for securities-based swaps reporting. This limited competition shaped the contours of pricing, feature development, and user experience. KOR’s newly secured position as the second SBSDR to cover all asset classes injects a critical element of competition into a previously constricted marketplace. Firms now have the option to select a reporting partner whose offerings can be compared not only on cost but also on qualitative factors like technology and client support—factors that directly influence their ability to comply effectively with regulatory requirements.
While the introduction of a second SBSDR does not by itself guarantee rapid transformation of market structures, it does lay the groundwork for potential improvements. The presence of an additional service provider gives institutions the flexibility to evaluate their existing arrangements and, where needed, pursue alternatives that better align with their operational objectives. In this way, KOR’s expanded U.S. regulatory reach represents more than a licensing milestone. It signifies the start of a new era in which the reporting landscape has room to evolve, fostering greater choice, responsiveness, and innovation in how participants fulfil their compliance obligations.
In addition to its newly established presence as a U.S. SBSDR, the company has already secured key trade repository registrations in major international markets, including Canada and Australia. These authorizations from multiple global regulators demonstrate a consistent vote of confidence in KOR’s capacity to handle critical transaction data with reliability and precision.
As harmonization among global regulatory regimes continues to evolve, KOR’s international standing positions it as a partner capable of supporting institutions through shifts in standards and requirements—ultimately contributing to a more consistent, transparent, and efficient global derivatives reporting environment.
Technological and Operational Excellence
As Tara Manual, KOR Chief Compliance Officer explains, “Trade Repositories aren’t typically considered a place for innovation, though that’s exactly what’s needed and what we’ve done to improve compliance and the client experience.”
Central to KOR’s value proposition is a technology platform specifically engineered to address the demanding realities of derivatives regulatory reporting. At a time when precision and speed are paramount, KOR’s suite of tools—ranging from real-time message processing to advanced user interfaces—enables participants to navigate complex compliance frameworks more efficiently. By swiftly identifying errors and offering intuitive dashboards that highlight essential data, the platform helps users manage their reporting obligations with far greater clarity.
At the core of KOR’s philosophy is a commitment to continuous improvement. Teams work in short, iterative cycles, employing lean requirements gathering and user-centered design. By formulating hypotheses, quickly validating assumptions, and leveraging feature flags and canary releases, KOR aims to move small, tested increments of functionality into production at a steady pace rather than orchestrating large, risk-laden “big bang” releases. This granular approach is supported by automated testing pipelines and strategic deployment gates, which help ensure that changes meet regulatory standards and do not inadvertently disrupt client operations.
These capabilities do more than merely keep pace with evolving standards; they set a higher benchmark for what a trade repository can deliver. The use of comprehensive API access, for example, equips clients with flexible integration options that align with their own systems and workflows, reducing friction in the reporting process. Each of these elements reflects an operational environment built to serve institutions under scrutiny from multiple regulators. In this regard, the SEC’s decision to recognize KOR as a fully licensed SBSDR can be read as an endorsement of a solution that stands ready to meet the industry’s rigorous and evolving demands.
Beyond its regulated data repository services, KOR provides a comprehensive suite of trade reporting services designed to address the operational challenges of derivatives data management. This side of the house focuses on helping clients collect, prepare, evaluate, and transmit their data to a trade repository such as KOR’s SBSDR.
“Trade Reporting needs to be smarter, more transparent and easier to get right. Our platform puts the operational and compliance user at the heart and center of the design,” says Manual.
Through a blend of advanced technology and domain expertise, these services ensure that reportable data is not only accurately prepared but also stays aligned with global regulatory changes. For market participants, this eliminates the inefficiencies of disparate systems and manual processes, enabling firms to maintain compliance with confidence while focusing on their core business objectives.
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