EMIR obliges counterparties to make sure that the data relating to the OTC derivatives portfolios match. The reconciliation of portfolios is the process of comparing the different key terms of a transaction, such as how transactions are valued by each counterparty. Parties must agree on the arrangements under which the portfolios shall be reconciled. This is the process of portfolio reconciliation.
The frequency of the reconciliation depends on the number of outstanding OTC derivatives transactions and the counterparty classification.
FC+, FC- and NFC+
NFC-
Daily if ≥ 500 transactions
Quarterly if > 100 transactions
Weekly if 51 ≤ transactions ≤ 499
Yearly if ≤ 100 transactions
Quarterly if ≤ 50 transactions