FIA has submitted a response to the European Securities and Markets Authority’s consultation paper on the draft RTS on information on clearing fees and associated costs (EMIR 3.0). FIA pushes back on the proposed requirements on clearing service providers (CSPs) and suggest an alternative approach.
ESMA’s draft RTS duplicates existing fees and costs disclosure requirements on CSPs set out in other articles of EMIR and in MiFID II. FIA suggests that the clearing fees and associated costs requirements as proposed in the draft RTS should be significantly simplified and materially amended to enable firms to meet compliance with Article 7c(2) by directing clients to the CSPs’ public disclosures that are already being made under Article 38(1) and Article 39(7) of EMIR and privately sharing bilateral disclosures under Article 4(3a) of EMIR or Article 24(4) of MiFID II (the latter upon request).
In this way, the Article 7c(2) disclosure could help bring together the different sources of existing information in a ‘one-stop-shop’ by clearly setting out in one document where and how to obtain existing disclosures, it would make it easier for clients to identify where/how to access this information, without requiring CSPs to transform or duplicate this information to meet a new set of substantially similar requirements to those that already exist.
FIA notes that the proposed draft RTS requirements should go hand in hand with the broader EU’s simplification rulemaking agenda. ESMA’s draft RTS goes beyond Level 1 when it comes to its territorial scope. FIA has asked ESMA to rectify this in the final draft RTS.
FIA asks ESMA to introduce a sufficiently long implementation period to allow CSPs to comply with the RTS requirements. The proposed length of the implementation period depends on how close the final RTS rules will be to our proposals. FIA has provided detailed responses to each of the four questions in the CP.
Also attached to the response is a gap analysis between the EMIR 3.0 fees and costs transparency disclosure requirement (Article 7c(2)) and other similar requirements on CSPs in EMIR and MiFID II.
Read full response here.
