7.2.1 Scope of data subject to reconciliation

591. TRs should ensure consistent determination of the scope of data subject to reconciliation. TRs therefore should only include in the reconciliation process derivatives, both at trade and at position level, where all the below conditions are fulfilled:

a. Counterparty 1 has reporting obligation, i.e. it is a counterparty established in the EU or an AIF, whose AIFM is established in the EU, based on the GLEIF.

b. Counterparty 2 has reporting obligation as indicated if established in the EU or an AIF, whose AIFM is established in the EU, based on the GLEIF or the field 1.14 'Reporting obligation of the counterparty 2' is populated with 'True'.

c. The derivative has not been subject to a report with action type 'EROR', unless it has been followed by a report with action type 'REVI'.

d. The derivative is outstanding, as referred to in Article 2(2)(a) and 2(2)(b) of the ITS on reporting, or it has been outstanding in the last thirty calendar days.

592. TRs should include late reported derivatives in the reconciliation process if the late report refers to an outstanding derivative subject to reconciliation.