The Financial Conduct Authority has confirmed that UK transaction reporting costs will fall by £108 million annually when revised rules take effect in April 2028, though contracts for difference and spread bets remain squarely within scope. The regulator estimates the industry currently spends £493 million per year on reporting obligations, a figure expected to drop to approximately £385 million under the streamlined regime.
Foreign exchange derivatives are being removed from reporting requirements, affecting over 400 UK-authorised firms. Obligations for 7 million instruments traded exclusively on EU venues will also be eliminated, saving roughly £32 million yearly. The number of mandatory reporting fields will decrease from 65 to 52, and firms will only need to correct historical errors covering three years rather than five.
CFDs and spread bets face continued scrutiny due to their leveraged nature and susceptibility to market abuse. The FCA specifically cited June 2025 convictions for insider dealing where transaction reports proved instrumental in detecting illicit CFD trading activity.
The relief comes at a price. Firms face one-off implementation costs totalling £148.8 million, predominantly for IT system upgrades. Large firms should budget around £40,000 simply for gap analysis and rule review. Early adopters can align with new requirements from August 2026 under flexible supervision arrangements.
Recent enforcement action, including a £99,200 penalty against Infinox Capital for 46,053 unreported transactions, confirms the FCA’s continued vigilance.
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FXnCO Insight
** CFD and spread bet providers should expect no regulatory dividend from these reforms—sustained reporting obligations combined with demonstrated enforcement appetite mean compliance investment remains non-negotiable.
Source: Finance Magnates