(1)

Given the cross-border dimension of market data handling, data quality and the necessity to achieve economies of scale, and to avoid the adverse impact of potential divergences on both data quality and the task of data reporting providers, Regulation (EU) 2019/2175 of the European Parliament and of the Council (2) transferred authorisation and supervision powers with regard to the activities of data reporting services providers (‘DRSPs’) in the Union to the European Securities and Markets Authority (‘ESMA’).

(2)

It is important to specify the fees that ESMA may charge with regard to the application, authorisation and supervision of data reporting services providers.

(3)

Fees charged to DRSPs are aimed at full recovery of costs made by ESMA related to authorisation and supervision of DRSPs. Supervisory activities include the assessment of suitability of the management body, supervision of compliance by DRSPs with organisational requirements, the exercise of powers to require information, conduct investigations and perform on-site inspections and the imposing of supervisory measures. ESMA assesses its budget on an annual basis.

(4)

Fees charged for ESMA’s activities related to DRSPs should be set at a level such as to avoid a significant accumulation of deficit or surplus. Where there is a recurrent significant surplus or deficit, the level of fees should be revised.

(5)

A DRSP should submit its application to ESMA in order to ensure harmonised application of the derogation criteria. During the first phase of the application, ESMA should determine if a DRSP is eligible for derogation from ESMA supervision. If the criteria for derogation apply, ESMA should forward the application to the national competent authority. No fee should be charged by ESMA in this case. The fixed fees related to the authorisation by ESMA should be divided between an application fee, which should relate to the assessment of completeness of an application and an authorisation fee. The process of authorisation should be completed within six months.

(6)

ESMA shall assess if DRSPs that are already authorised at national level from 1 January 2022 will fall in scope of ESMA supervision and inform the respective DRSPs. DRSPs that are already authorised at national level should not be subject to reauthorisation by ESMA. These DRSPs already comply with the requirements applicable to DRSPs and should not be charged for a duplication of the authorisation process by ESMA.

(7)

The annual fees charged by ESMA should cover all activities related to the DRSPs. ESMA should assess annually its supervisory budget related to each type DRSP and charge each individual DRSP a fee that is proportionate to its revenue compared to the total revenue of all DRSPs of the same type. Revenue related to activities directly ancillary to core DRSP services should be included in the calculation of the applicable turnover for as far as it is likely to have an impact on ESMAs supervision of the DRSP and it is not already covered by separate supervision activities. A minimum fee for Approved Publication Arrangements (APAs) and Approved Reporting Mechanisms (ARMs) covers the fixed costs related to requests for information, on-going monitoring and, investigations. The annual fee applies per calendar year.

(8)

ESMA may delegate supervisory tasks to national competent authorities, in which case the national competent authorities should be reimbursed by ESMA for their costs incurred.

(9)

As information on cost based supervision is difficult to collect for the supervision in 2022, it is essential to provide for a transitional provision with a calculation method for a fixed fee that applies during the first year of supervision by ESMA and that is based on easily obtainable and objective data. In order to meet the proportionality principle, a distinction between DRSPs should be made by using the number of transactions as a proxy for the relevance of the individual DRSP relative to all DRSPs. The calculation to determine the supervisory fee per DRSP for 2022 should be based on the information provided by national competent authorities on transactions published or reported by APAs and ARMs during the first half of 2021 and should distinguish between larger and smaller DRSPs.

(10)

Audited accounts for DRSPs will only become required after ESMA has taken over DRSP supervision. It is therefore necessary to provide for a transitional provision to adjust the revenue calculation method for 2023, under which the payment of the annual supervisory fee for 2023 is first be based on non-audited account information from the first six months of 2022. At a second stage, a correction mechanism should be in place to base the fee on audited accounts of the whole year of 2022.

(11)

In order to ensure smooth functioning of the new supervisory framework for DRSPs, as introduced in Article 4 of Regulation (EU) 2019/2175, this Regulation should enter into force as a matter of urgency,