The FCA has set out proposals that could save firms more than £100m each year by reducing and simplifying transaction reporting obligations.
The regulator currently processes over 7bn MiFID transaction reports annually, using the data to support market cleanliness, transparency and overall resilience across the UK’s financial system.
The FCA’s proposals are aimed at lowering compliance costs, enhancing data accuracy and supporting broader economic growth. A key change would see foreign exchange derivatives removed entirely from the reporting framework, relieving more than 400 firms of a significant administrative burden. The regulator has also suggested removing around 6m financial instruments from reporting, including equities, bonds and a range of derivatives traded solely on EU venues.
Further measures include shortening the time allowed for firms to correct historic reporting mistakes. Under the plans, the window for resubmitting previous reports would reduce from five years to three, a shift expected to cut the volume of required resubmissions by one-third. The FCA said these changes are designed to help firms operate more efficiently while enabling the regulator to receive higher-quality, more complete sets of reporting data.
FCA joint executive director of enforcement and market oversight Therese Chambers said, “Transaction reports are essential, helping us to detect financial crime and monitor the resilience of our markets. But we can be smarter, and by clarifying and streamlining requirements we expect to receive more accurate and complete reports.
“Reducing costs while improving the quality of the data we receive is a no-brainer. It means we can support growth and receive better market intelligence to act on.”
The FCA confirmed it will work closely with the Bank of England and the Treasury to eliminate overlapping or unnecessary post-trade and transaction reporting requirements, forming part of a longer-term effort to refine the regulatory reporting landscape.
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