4.4.11.1 Package

304. A package is a combination of two or more trades that are combined in a strategy. Recital 3 of the current RTS on reporting mentions that it should be apparent from the transaction report if the transaction is part of an overall strategy. Therefore, derivative contracts relating to a combination of derivative contracts should be reported in separate legs for each derivative contract with an internal identifier to provide a linkage between the legs.

305. Furthermore, Article 1 of the current RTS on reporting provides that the reporting counterparty shall link the separate reports by an identifier that is unique at the level of the counterparty to the group of transaction reports. Field 14 of Table 2 in the Annex to the current RTS on reporting, on “Complex trade component ID”, represents this linkage of separate reports. This field is applicable only where a firm executes a derivative contract composed of two or more derivative contracts and where this contract cannot be adequately reported in a single report. Pursuant to Article 1 of the current RTS on reporting both counterparties to the contracts need to agree on the number of reports to be sent.