The SSMA’s response to the ESMA Consultation on a draft RTS on the information on clearing fees and associated costs under Article 7c(4) of EMIR
The SSMA has responded to the ESMA Consultation on a draft RTS on the information on clearing fees and associated costs under Article 7c(4) of EMIR.
Under the reviewed European Market Infrastructure Regulation (‘EMIR 3’) Clearing Service Providers (CSPs) are required to disclose, in a clear and understandable manner, the fees to be charged to clients for the provision of clearing services and any other fees charged including fees charged to clients which pass on costs, and other associated costs related to the provisions of clearing services. ESMA has been mandated to develop draft regulatory technical standards (RTS) to further specify the type of information to be disclosed by CSPs and the consultation paper contains a draft RTS.
The requirements in the draft RTS duplicates already existing disclosure requirements, which would add additional burden on the CSPs without any added value to the clients. In line with the ongoing EU work of simplification and burden reduction, the SSMA would like to encourage ESMA to further map out the already available disclosure that can be re-used and to avoid introducing new, detailed requirements that adds complexity to the processes. Any additional obligations should focus solely on what is genuinely useful to clients. Transparency is important, but adding more detailed and complex disclosure requirements on CSPs risks discouraging participation, thereby hampering competition, efficiency and client access to clearing in the Union.