Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A.

(BME)
SummaryChartsNewsRatingsCompany 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

EU watchdog says pricing at derivatives reporting firms too opaque

01/11/2018 | 08:16am EDT
A European Union flag flutters outside the Palace of Westminster, London

LONDON (Reuters) - Trade repositories in the European Union must do more to show that their fees are driven by actual costs to help customers decide which one to use, the bloc's markets watchdog said on Thursday.

The European Securities and Markets Authority (ESMA) authorises eight repositories that banks and other market participants must use to record derivatives trades.

Data from trade repositories (TRs) is scrutinised by regulators to see who is behind each trade and whether risks are building up in the system.

The aim is to apply lessons from the financial crisis when Lehman Brothers collapsed and it took time to find out who was exposed to the bank's derivatives trades, raising fears about other banks and accentuating market turbulence.

ESMA reviewed fees charged by the TRs and in its findings published on Thursday said it was unclear whether the fees complied with EU rules that cost must be the key pricing factor.

"The ultimate aim is to ensure that customers know exactly what they are paying for and how the fees they are charged are set," ESMA Chair Steven Maijoor said in a statement.

TRs must demonstrate their fees, including fee caps, are driven by costs, the watchdog said.

Decisions to set fee caps do not seem to be driven by costs and raise the risk of potential discriminatory practices that are against EU rules, the watchdog said.

The watchdog is concerned that the lack of clarity on fees makes it harder to check if TRs give preferential treatment to some customers because they use other services as well.

Several TRs are owned by exchanges.

"TRs that are part of a group need to ensure that intra group transactions are on reasonable terms and on an arm's length principle to prevent discriminatory access and unfair cost allocation," ESMA said.

Small and less experienced customers in particular may not be getting enough detail to make an informed decision on which TR to use, ESMA said.

It found "areas for significant improvement" for TRs in their current fee practices.

The eight TRs authorised by ESMA are: Bloomberg Trade Repository Ltd, CME Trade Repository (>> CME Group), DTCC Derivatives Repository, ICE Trade Vault Europe (>> Intercontinental Exchange Inc), Poland's Krajowy Depozyt Papierow Wartosciowych, NEX Abide (>> NEX Group PLC), Regis-TR (>> Bolsas y Mercados Espanoles SHMSF SA) (>> Deutsche Boerse AG), and Unavista (>> London Stock Exchange Group Plc).

ESMA will sit down with TRs to see what steps they are taking to make fees more transparent.

It also reviewed fees at credit rating agencies, which it also regulates in the EU.

(Reporting by Huw Jones; Editing by Carolyn Cohn and Mark Potter)

By Huw Jones


© Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
CME GROUP INC. -1.15% 185.84 Delayed Quote.3.63%
DEUTSCHE BÖRSE AG 3.77% 144.65 Delayed Quote.0.11%
FTSE 100 1.12% 6980.98 Delayed Quote.6.86%
INTERCONTINENTAL EXCHANGE, INC. -0.08% 116.74 Delayed Quote.1.34%
JUST GROUP PLC -0.78% 89.4 Delayed Quote.28.90%
LONDON STOCK EXCHANGE PLC 1.10% 7926 Delayed Quote.-12.97%
NEXT PLC 0.72% 8080 Delayed Quote.13.21%
All news about BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A.
02/17PRESS RELEASE : MC2 Therapeutics: Almirall and MC2 Therapeutics enter a License, Collabora..
DJ
2020BLACKSTONE : Casts a Wider Net in Diversity Push
DJ
2020Mubadala, Barings partner to finance European mid-market cos
RE
2020Swiss exchange Six makes highest bid in Italy's Borsa battle -sources
RE
2020Switzerland's Six makes highest bid for Borsa Italiana - sources
RE
2020Euronext offers Rome concessions to win Borsa Italiana - sources
RE
2020BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDA : BME) dropped from S&P Global BMI Index
CI
2020SIX trading turnover benefits from COVID volatility, eyes more deals
RE
2020Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. ..
CI
2020Bolsas Y Mercados Españoles Appoints Belén Romana García as Director
CI
More news
Analyst Recommendations on BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A.
More recommendations
Chart BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A.
Duration : Period :
Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. Technical Analysis Chart | BME | ES0115056139 | MarketScreener
Managers and Directors
Javier Hernani Burzako Chief Executive Officer & Executive Director
Marta Bartolomé Yllera Chief Financial Officer
Jos Dijsselhof Non-Executive Chairman
Arturo Merino Head-Information Technology
Belén Romana García Independent Director