The Securities Financing Transactions Regulation (SFTR), like the European Markets Infrastructure Regulation (EMIR), grants the European Securities and Markets Authority (ESMA) direct registration and supervisory powers over trade repositories. In accordance with Article 11(1) of the SFTR, ESMA shall charge fees to trade repositories (TRs) and those fees shall fully cover ESMA’s necessary expenditure relating to the registration, recognition and supervision of TRs.

In January 2016, ESMA received a formal request from the European Commission to provide technical advice to assist the Commission in formulating an EU Regulation on fees for TRs under the SFTR by delegated act.

ESMA has now published a consultation paper on draft technical advice to the Commission on formulating an EU Regulation on ESMA’s fees for TRs under the SFTR. Among other things the consultation paper:

  • outlines ESMA’s expected costs;
  • establishes a general approach for the determination of fees under EMIR and the SFTR;
  • explains how ESMA will manage surpluses and deficits under EMIR and the SFTR;
  • sets out the rationale and computation of TRs fees for registration and extension of registration under the SFTR;
  • present the supervision fees under EMIR and the SFTR and recognition fees under the SFTR; and
  • addresses the instances where delegation to Member State national competent authorities takes place.

The deadline for comments on the consultation paper is 31 January 2017.

View ESMA consults on supervision fees for trade repositories under SFTR and EMIR, 19 December 2016