399. In order to ensure alignment with Commission Delegated Regulation 2019/358, ESMA proposes that at the latest one hour following the conclusion of the reconciliation process, the TRs should provide to the reporting counterparties or the entities acting on their behalf response messages describing whether the derivative is reconciled or not. In the latter case, the TRs should detail the relevant data elements where reconciliation breaks take place and provide both values reported. Furthermore, for each UTI reported, the TR should assign the following values with regards to the reconciliation of the derivative:

400. The reconciliation categories and the allowable values are described as follows:

a. Reporting type will inform whether both counterparties to a derivative have reported to the same TR, i.e. dual-sided, or whether the TR is aware of only one side, i.e. single-sided.

b. Reporting requirement for both counterparties relates to the existence or not of reporting obligation for both counterparties. If there is reporting obligation for only one of the parties, the derivative will not be intended to be reconciled. It is worth noting that the allocation of reporting responsibility under Article 9(1a) and (1d) EMIR as amended by EMIR REFIT does not exempt the report of both sides of the derivative but establishes a rule for the reporting.