574. Under the draft RTS on data quality, ESMA also introduced the reconciliation of the information on valuation of derivatives. Under the existing reporting requirements, valuation data is reported as part of the counterparty specific data. The relevant fields are 2.21, 2.22, 2.24 and 2.25.

575. Mindful of the need to adjust the reporting systems, ESMA has included a delayed start of the reconciliation of the data on valuation by two years. To be considered reconciled the valuation data should be expressed in the same currency as indicated in the RTS on data quality.

576. The reconciliation of valuation from trade-level or position-level perspective should follow the guidance provided in section 8.2.2.

577. When one of the counterparties to the derivative is an NFC-, that entity is not required to report valuation data. ESMA understands that this would not allow for the performance of the reconcilation process of the valuation data, as one of the data sets would be missing.

578. Alternative A: the TRs should reconcile all the derivatives for which valuation data has been reported in the last 14 calendar days.

579. Alternative B: TRs should include all the data in the reconcilaition process and flag the derivatives where one of the counterparties have not reported valuation, irrespective of the reason, as not reconciled.