5. These proposed Guidelines are based on Article 16(1) of ESMA's Regulation. They fulfil several purposes with regards to the harmonisation and standardisation of reporting under EMIR. This is key to ensure high quality of data necessary for the effective monitoring of the systemic risk. Furthermore, increased harmonisation and standardisation of reporting allows to contain the costs along the complete reporting chain - the counterparties that report the data, the TRs which put in place the procedures to verify the completeness and correctness of data, and the authorities, defined in Article 81(3) of EMIR which use data for supervisory and regulatory purposes. The proposed Guidelines provide clarifications on the following aspects:

• transition to reporting under the new rules,

• the number of reportable derivatives,

• intragroup derivatives exemption from reporting,

• delegation of reporting and allocation of responsibility for reporting,

• reporting logic and the population of reporting fields,

• reporting of different types of derivatives,

• guidance which aim to enusre high data quality by the counterparties and the TRs,

• construction of the Trade State Report and reconciliation of derivatives by the TRs,