(3)Article 11(12a), fifth subparagraph, of Regulation (EU) No 648/2012 requires that the annual fee to be paid to the EBA is proportionate to the monthly average outstanding notional amount of non-centrally cleared OTC derivatives transactions over the last 12 months of the counterparties concerned. Counterparties should use the equivalent portfolio notional approach to determine the average notional amount. Counterparties should be allowed to use an alternative approach, provided that they can justify the choice for that alternative approach to their competent authority.