The European Securities and Markets Authority (ESMA) has published a consultation paper on formulating an EU regulation on fees for trade repositories under the Securities Financing Transaction Regulation (SFTR).
The consultation is designed in response to a request from the European Commission (EC) to provide technical advice in formulating a regulation on fees for trade repositories.
As part of the consultation and in an attempt to ensure a ‘level playing field’ across SFTR and European Market Infrastructure Regulation (EMIR), the authority is proposing changes to how ESMA’s fees for trade repositories under EMIR are calculated.
ESMA is proposing a mixed system of imposing fees on specific administrative actions alongside an annual fee for continuous supervision which is equivalent to the level of turnover of the trade repositories.
In addition, ESMA is proposing ‘significant’ simplification in how annual turnover of trade repositories is decided.
ESMA will consider all comments by the end of January 2017 and will use the feedback received to finalise its advice for submission to the EC by the end of Q1 or the beginning of Q2 2017.