The Financial Conduct Authority has issued proposals to scrap or amend elements of the UK MiFID transaction reporting regime, aiming to reduce firms’ reporting burden while improving the quality of data it receives. The package is designed to deliver net annual savings of over £100m, while maintaining the regulator’s ability to use transaction reports to detect financial crime and monitor market resilience. The FCA currently receives more than 7 billion MiFID transaction reports a year and estimates the annual cost to industry at £493m. Under the proposed changes, costs would fall to about £385m, a net saving of £108m. Key measures include removing foreign exchange derivatives from transaction reporting (reducing costs for more than 400 firms), removing reporting requirements for around 6 million instruments that are only traded on EU trading venues (including equities, bonds and certain derivatives), and shortening the lookback period for correcting historic reporting errors from five to three years, which the FCA expects to reduce resubmissions by around a third. As part of a longer-term approach, the FCA plans to work with the Bank of England and HM Treasury to streamline requirements and reduce duplication across transaction and post-trade reporting datasets, including UK MiFIR, EMIR and SFTR.
Financial Conduct Authority 2025-11-19
Financial Conduct Authority proposes streamlining UK transaction reporting to cut annual industry costs by £108m
The Financial Conduct Authority (FCA) proposes changes to the UK MiFID transaction reporting regime to reduce firms' reporting burden and improve data quality, aiming for net annual savings of over £100m. Key measures include removing foreign exchange derivatives from reporting, eliminating requirements for instruments traded only on EU venues, and shortening the lookback period for correcting errors. The FCA plans to work with the Bank of England and HM Treasury to streamline and reduce duplication across reporting datasets.