The European Securities and Markets Authority has published plans to streamline transaction reporting requirements across the European Union through a unified “report once” framework, potentially saving market participants between €250 million and €1 billion annually. The initiative addresses costly duplication arising from overlapping obligations under MiFIR, EMIR, and SFTR, which currently force firms to submit similar data multiple times to satisfy different regulatory mandates.
ESMA identified fragmentation and inconsistent interpretations across member states as primary drivers of operational burden. The proposed single integrated system would allow firms to file transaction data once through a modular structure accommodating different asset classes, with regulators reusing information across supervisory functions. According to ESMA’s cost-benefit analysis, recurring compliance costs could drop by approximately 22 to 24 percent, generating net benefits approaching €4.9 billion over a decade. Implementation costs would be recovered within three to four years.
The reform affects investment firms, trading venues, and brokers operating under MiFID II across all EU jurisdictions. While long-term implementation requires legislative amendments and phased rollout, ESMA has proposed interim relief including expanded delegated reporting and simplified intragroup exemptions. The proposal now enters consultation with EU institutions and industry stakeholders on technical standards and system architecture.
FXnCO Insight
Brokers should monitor this development closely as simplified reporting could materially reduce compliance technology spending, though transition planning will be essential given the scale of system changes required.
Source: Finance Magnates