1. TRs should reconcile derivatives with two legs by reconciling each of the legs as reported by the counterparties.

602. It is worth noting that in the case of most types of derivatives with two legs such as interest-rate swaps, cross-currency swaps and FX swaps, the order of the legs cannot be unequivocally defined, as there is no specific prevalence of one leg over the other. Therefore, when counterparties report inconsistently the two legs of the derivative, the TR should intend matching the two legs irrespective of the sequence, taking into account the values reported by the two counterparties under field 'Direction of leg 1' by matching the legs with opposite values. In case counterparty 1 has reported it with 'payer' the TR should reconcile it with the leg that is identified as 'receiver' or with the leg that is not identified, when leg 1 is identified with 'payer'.

603. When an outstanding position is the result of netting of a position to zero (Level = P and Quantity=0) , TR should exclude from the reconciliation the fields 'Direction', 'Direction of leg 1' and 'Direction of leg 2'.