199. Article 4 of the ITS on reporting provides that the counterparty side to the derivative contract shall be determined at the time of the conclusion of the derivative on the basis of the type of contract concluded.

200. Based on the above, counterparties should determine the counterparty side at the time of the conclusion of the derivative and report either Buyer/Seller in field 'Direction' or Payer/Receiver in fields 'Direction of Leg 1' and 'Direction of Leg 2' depending on the type of the derivative concluded, as provided in the table below.

201. Counterparties, once determined the counterparty side, should report the fields related to 'Direction', 'Direction of Leg 1' and 'Direction of Leg 2' with the opposite values.

202. This means that in case where the two counterparties concluded a contract which requires the population of the field 'Direction', if the counterparty 1 reports Buyer in field 'Direction', the other counterparty to the contract should report Seller and vice versa.