179. Under the current RTS and ITS on reporting, counterparties are allowed to report post- trade events at position level in addition to trade-level reporting providing that certain conditions are met. EMIR Q&As (TR Question 17) provide further clarity in this regard. In particular, position-level reporting can be used if the legal arrangement is such that the risk is at a position level, all trade reports made to the TR relate to products that are fungible with each other and the individual trades previously reported to the TR have been subsequently replaced by the position report, for example in the case of trades between a clearing member and a CCP. If counterparty reports at position level, any subsequent updates, modifications and life cycle events (including revaluations) should be applied to the report of the position and not to the reports of the original trades.

180. To avoid double-counting of the reports of trades and those of positions in EMIR, the reports of the original trades must be updated to have an appropriate status so that it is clear that they are no longer open. In practice this is currently done by using the Action Type “Compression” or by using Action Type “Position component” when reporting a new trade that is immediately included in the position. A separate field “Level” is used to indicate whether a given report is submitted for a trade or for a position.

181. ESMA proposes to maintain this approach under the draft RTS and ITS on reporting with the only difference that the counterparties would need to use Action Type “Terminate” with Event Type “Inclusion in position” to report inclusion in a position of previously reported trades.