The following applies to both financial and non-financial counterparties:

• Exchange of confirmation with the counterparty – in writing or electronically.
• Perform portfolio reconciliation with the counterparty.
• Agreement on procedures with the counterparty for dispute resolution in connection with the trading of OTC derivatives.
• Implementation of procedures for the compression of outstanding OTC derivatives if they exceed 500 contracts with a single counterparty.

NFC+ and FC shall also carry out daily valuation of outstanding OTC derivatives and daily exchange of collateral.

Swedbank will send you a confirmation as a business customer for each OTC derivative transaction you make. As a customer, you need to sign these confirmations and then return them to Swedbank by e-mail or Internetbanken no later than the first banking day for FC, FC- and NFC+ or the second for NFC- after the business day in question.

Companies must reconcile outstanding OTC derivative contracts with their counterparties. Depending on the number of outstanding transactions that a company has with Swedbank, the bank will send out summaries of open positions dependent on Counterparty classification (FC, NFC+ or NFC-) and portfolio size on a daily, weekly, quarterly or yearly basis. The company may then go through and contact Swedbank in the event that the information is incorrect.

Companies dealing in OTC derivatives must have agreed dispute resolution procedures with their counterparties. Your derivative agreement with Swedbank states how a dispute is initiated and the ways to resolve it.

Companies with more than 500 contracts with the same counterparty must develop procedures for the compression of outstanding OTC derivatives.

For more information, see the ESMAS website.