446. Equity derivatives are a type of derivatives whose value is derived, at least partly, from one or more underlying equity securities. Options and futures are the most common equity derivatives. The type of contract should be specified in field 2.10 and the asset class (EQUI) should be specified in field 2.11 as indicated in the RTS and the ITS on reporting.

447. A Total Return Swap is a contract between two parties who exchange returns from a financial asset (underlying) between them. In this kind of derivatives, one party makes payments based on a set rate while the other party makes payments based on the total return of the underlying asset. The underlying assets are usually a bond, equity, equity index, interest, or loan.

448. For example, a Total Return Swap on an equity index should be reported with the value 'EQUI' in field 2.11 'Asset Class', whereas a Total Return Swap on a bond or loan should be reported with the value 'CRDT' in field 2.11 'Asset Class'.

449. The event type 'Corporate Event' should be used in the case of lifecycle events triggered by corporate actions on the underlying equities. See section 4.6 for more details.

450. The direction of the trade of most equity swaps should be reported following the approach in which the counterparties would indicate whether the reporting counterparty is payer/receiver for a given leg at the time of the derivative, using an indicator in the dedicated fields ('Direction of leg 1' or 'Direction of leg 2'). See the section 4.12 of these Guidelines for further details.