On Jan. 3, EC consulted on changes re ESMA trade repository fees.
EC issued 2 draft delegated regulations for consultation, which aim to harmonize and simplify technical aspects of collection of ESMA fees for trade repositories (TRs).
On TR fees under European Market Infrastructure Regulation (EMIR Reg 648/2012), and under Securities Financing Transactions Regulation (SFTR Reg 2015/2365).
ESMA charges fees to TRs under EMIR in accordance with Delegated regulation Reg 1003/2013, covers types of fees, what they cover, amount of fees, how to be paid.
And charges TR fees under SFTR per Delegated regulation Reg 2019/360 in same way.
However, lack of harmonization in rules on fees resulted in unnecessary complexity, ESMA resources not used as efficiently as possible, risk of incorrect fee calculation.
EC sought technical advice from ESMA on possible harmonization and simplification.
Proposals
To address this, EC proposes to align several elements of the fees to be paid by TRs with corresponding rules for other entities to ensure coherence, improve operation.
Will amend EMIR delegated regulation 1003/2013 to specify scope of costs to be fully covered by fees; definition of applicable turnover of TRs on basis of audited accounts.
And conversion in euro of audited accounts provided in currencies other than euro.
Amount of registration fee for concurrent applications for registration under both EMIR and SFTR; difference in amount of fees in case of material change in TR services.
Determination of initial supervisory fee in first year of registration; minimum amount of supervisory fee, amount and time of payment of fee in first year of TR registration.
Applicable interest rate for late payments, time of payment of registration fees, and time of payment of recognition and annual supervisory fees for third country TRs.
Also proposes to update SFTR delegated regulation 2019/360 in a similar way.
Effectiveness
Closing date for feedback on draft amending delegated regulations is Jan. 31, 2024.
Commission adoption of the new delegated regulations is planned for Q4 of 2024.
Regulations shall enter into force on 20th day following publication in the Official Journal of the European Union, Jul. 8, 2024; they shall apply from Jan. 1, 2025.
