308. In relation to the newly added field 'Reporting obligation of the counterparty 2', ESMA clarifies that this field should be filled with the value 'FALSE' only if the counterparty 2 is not subject to reporting obligation, for example, where it is a non-EEA entity (counterparty or CCP) or a natural person who is acting as private individual. Indeed, ESMA is expecting that the counterparty 1 possesses such information as the result of the KYC process for the counterparty 2.

309. If the counterparty 2 is subject to the reporting obligation, the field should be populated with 'TRUE'. In particular, where the FC concluded an OTC derivative with the NFC- the field should be filled with the value 'TRUE' irrespective of whether the NFC- has decided to report itself in accordance with the third subparagraph of Article 9(1)(a). As per the definition of the field, indicator of the reporting obligation is independent from allocation of responsibility for reporting. It is also independent from any delegation arrangement.