532. The correct preparation of the Trade State Report (TSR) by TRs is essential to ensure the achievement of one of the main objectives of EMIR - the monitoring of systemic risks to financial stability.

533. TRs should include the most up-to-date information relating to outstanding dervatives in the TSR in order to allow the authorities to have a direct and immediate access to the most granular information on existing risk exposures between counterparties. TRs should also allow each individual counterparty to have a clear understanding of its own exposures vis-à-vis each market participant with which it has an open derivative.

534. The requirements for TRs to produce TSR are included in Article 2 and 5 of the RTS on data access, as amended by the draft RTS on data access and Article 4 of the draft RTS on data quality.

535. In sections 5.6.2 and 5.6.3, ESMA provides clarifications on the sequences of aplicable action types and event types and on the allowable combinations between those. Furthermore, in section 5.9 ESMA includes guidance with regards to the timeliness of reporting of the conclusion, modification and termination of a derivative.

536. A reference to outstanding derivatives is included in Article 2(2) of the draft ITS on reporting.