On 15 January 2016, the European Securities and Markets Authority (ESMA) received a formal request from the European Commission (Commission) to provide technical advice to assist the Commission in formulating an EU Regulation on fees for trade repositories (TRs) under the Regulation on transparency of securities financing transactions and of reuse (the SFTR).

The technical advice was expected to be delivered to the Commission by 12 January 2017. However, due to the substantial delivery of all the draft technical standards under the SFTR and the revision of the European Market Infrastructure Regulation (EMIR) technical standards in March 2017, ESMA has only now been able to deliver a final report containing the technical advice.

In the final report ESMA details its proposals regarding the determination of fees to TRs under the SFTR and certain amendments to the fees under EMIR. Following an assessment of the responses to its earlier consultation ESMA has refined its fees proposals. In particular ESMA:

  • proposes an amendment of the general approach under EMIR relating to the treatment of surpluses and deficits in order to make it consistent with the new ESMA budgeting framework. ESMA proposes the application of the same approach for the determination of fees under the SFTR;
  • proposes a simplification of the way to determine the turnover of TRs for the purposes of calculating annual supervisory fees by including only revenues and excluding activity figures;
  • defines the calculation of lower fees in the case of extension of registration under the SFTR, or in the case of concurrent application under both regimes;
  • proposes the calculation of fees for recognition of third country TRs and the reimbursement of the cost to Member State national competent authorities in the case of delegation of tasks.

ESMA will submit the final report to the Commission by the beginning of Q2 2017.

View ESMA advises Commission on fees for trade repositories, 21 April 2017