Large Options Positions Reporting (LOPR) for front-to-back data integrity and control
The Options Clearing Corporation (OCC) has developed and is currently hosting the Large Option Position Reporting (LOPR) system. This system allows firms to submit their LOPR files to OCC to maintain compliance with FINRA Rule 2360(b)(5) and the exchanges' rules.
Inbound LOPR and In Concert group submissions are received and processed by OCC to maintain a LOPR database. The OCC sends outbound rejected In Concert data, rejected LOPR submissions and backdated LOPR submissions to submitting firms and regulators. In addition, firms can subscribe to a nightly LOPR Snapshot file that contains all of the firm's valid LOPR records on the LOPR database.
OCC will be validating the data received from the firms. LOPR submissions that fail validation by OCC will be returned to the submitting firm as a Rejected LOPR Submission. Firms receive their Rejected LOPR Submissions in a FIXML file – and this is just the start of reporting challenges.
There is a huge amount of data, often in multiple internal formats, that needs to be validated and then reported accurately within the OCC time deadlines. Clareti Transaction Control (CTC) from Gresham is a flexible control framework for monitoring the real-time trade data life-cycle as part of the LOPR reporting process.
The real-time, user friendly UI highlights areas of review, differences from internal golden sources / internal trade capture systems, and allows users to make changes to the LOPR submission file prior to the 4pm deadline. CTC then tracks and stores an audit trail of all user initiated amendments, with user comments persisting.
CTC normalizes and validates a full set of activity from the source systems. Transformation logic is provided to normalize all system feeds to ensure all pertinent reportable fields are accurate (LOPR Submission file, Source Systems and Term Sheets). Additionally, transformation logic is provided to normalize the OCC reject file on T+2 basis, to ‘call back’ the prior day items to amend the OCC report for resubmission.
Exceptions are highlighted for user review utilising a standardized exception management workflow process. Reporting and analytics are also provided to create MIS reports for review by business, compliance and operations stakeholders.
Want to know more about how CTC can help you to fulfil your regulatory reporting obligations year after year?