130. In general terms, 'position' should be understood as the exposure between a pair of counterparties, consisting of a set of fungible derivatives (trades) with economic and legal relations among them which allows for a common risk management that results in a net or reduced volume of the joint exposure. Trade and transaction are used interchangeably in this section.

131. Following Article 3 of the RTS on reporting, it is possible to report post-trade events at position level following the initial reporting of the details of a derivative concluded at transaction level and the termination of that derivative due to its inclusion in a position, provided that the following conditions are met: the legal arrangement is such that the risk is at position level, all trade reports made to the TR relate to products that are fungible with each other and the individual trades previously reported to the TR have been subsequently replaced by the position report (e.g. as in the case of trades between a clearing member and a CCP).

132. The categories of derivatives eligible for reporting at position level are: ETDs, centrally cleared OTC derivatives netted by CCPs and Contracts For Difference (CFDs). Although in the case of such derivatives the information concerning positions is most relevant for the assessment of systemic risk, reporting only at position level is not in line with EMIR requirements under Article 9 of EMIR, which requires all counterparties to report e.g. conclusion of a derivative at transaction level.