Article 3a
Counterparty side
1. The counterparty side to the derivative contract referred to in field
14 of Table 1 of the Annex shall be determined in accordance with
paragraphs 2 to 10.
2. In the case of options and swaptions, the counterparty that holds
the right to exercise the option shall be identified as the buyer and the
counterparty that sells the option and receives a premium shall be
identified as the seller.
3. In the case of futures and forwards other than futures and forwards
relating to currencies, the counterparty buying the instrument shall be
identified as the buyer and the counterparty selling the instrument shall
be identified as the seller.
4. In the case of swaps related to securities, the counterparty that
bears the risk of price movement of the underlying security and receives
the security amount shall be identified as the buyer and the counterparty
that pays the security amount shall be identified as the seller.
5. In the case of swaps related to interest rates or inflation indices,
the counterparty paying the fixed rate shall be identified as the buyer
and the counterparty receiving the fixed rate shall be identified as the
seller. In the case of basis swaps, the counterparty that pays the spread
shall be identified as the buyer and the counterparty that receives the
spread shall be identified as the seller.
6. In the case of cross-currency swaps and swaps and forwards
related to currencies, the counterparty receiving the currency which
appears first when sorted alphabetically by International Organization
for Standardization (ISO 4217) standard shall be identified as the buyer
and the counterparty delivering that currency shall be identified as the
seller.
7. In the case of swaps related to dividends, the counterparty
receiving the equivalent actual dividend payments shall be identified
as the buyer and the counterparty paying the dividend and receiving
the fixed rate shall be identified as the seller.
8. With the exception of options and swaptions, in the case of
derivative instruments for the transfer of credit risk, the counterparty
buying the protection shall be identified as the buyer and the
counterparty selling the protection shall be identified as the seller.
9. In the case of derivative contracts relating to commodities, the
counterparty that receives the commodity specified in the report shall
be identified as the buyer and the counterparty that delivers the
commodity shall be identified as the seller.
10. In the case of forward-rate agreements, the counterparty paying
the fixed rate shall be identified as the buyer and the counterparty
receiving the fixed rate shall be identified as the seller.