European Commission Regulation on Supervision Fees for Consolidated Tape Providers

Strategic Insights -

The European Commission has issued a regulation that amends the scope of fees relating to the supervision by the European Securities Markets Authority (ESMA) of data reporting services providers, including consolidated tape providers (CTPs). The regulation enters into force on the twentieth day following its publication in the Official Journal of the European Union. The new regulation aims to ensure proportionality and prevent the creation of barriers to market entry for CTPs, while reflecting an estimate of the expenditure necessary to perform supervisory tasks.

Key Takeaways:

  • The regulation amends Commission Delegated Regulation (EU) 2022/930 to include consolidated tape providers (CTPs) under the scope of fees relating to ESMA supervision.
  • CTPs are subject to a fixed authorisation fee and an annual supervisory fee, which covers all costs associated with tasks related to their authorisation and ongoing supervision.
  • The annual supervisory fee for CTPs is determined based on their applicable turnover, with a special regime for the first three years of operation to avoid creating barriers to market entry.
  • The special regime includes a fixed annual supervisory fee of EUR 400 000, applied on a pro rata basis for the first year.
  • In the second year, CTPs that start operations in the first half of the year should pay the full amount of the fixed annual supervisory fee.
  • As of the fourth year, CTPs should no longer be subject to the special regime and pay the normal annual supervisory fee.
  • The regulation requires ESMA to assess direct and indirect supervisory costs in relation to CTPs, including staff costs and horizontal services, to determine the annual supervisory fee.

Statistics:

  • The fixed annual supervisory fee for CTPs is EUR 400 000.
  • The special regime applies to CTPs for the first three years of operation.
  • In the second year, CTPs that start operations in the first half of the year should pay the full amount of the fixed annual supervisory fee.
  • As of the fourth year, CTPs should no longer be subject to the special regime and pay the normal annual supervisory fee.

Sources:

  • COMMISSION DELEGATED REGULATION (EU) 2025/884 of 7 May 2025 amending Delegated Regulation (EU) 2022/930 as regards fees relating to the supervision by the European Securities Markets Authority of consolidated tape providers (OJ L 177, 18.7.2025, p. 1, ELI: http://data.europa.eu/eli/reg_del/2025/884/oj)
  • Commission Delegated Regulation (EU) 2022/930 of 10 March 2022 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council by specifying fees relating to the supervision by the European Securities and Markets Authority of data reporting services providers (OJ L 162, 17.6.2022, p. 1, ELI: http://data.europa.eu/eli/reg_del/2022/930/oj)
  • Regulation (EU) 2024/791 of the European Parliament and of the Council of 28 February 2024 amending Regulation (EU) No 600/2014 as regards enhancing data transparency, removing obstacles to the emergence of consolidated tapes, optimising the trading obligations and prohibiting receiving payment for order flow (OJ L, 2024/791, 8.3.2024, ELI: http://data.europa.eu/eli/reg/2024/791/oj)