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ESMA Launches Call for Evidence on Simplifying Financial Transaction Reporting

  • Antonis Hadjicostas
  • Jun 25
  • 2 min read
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On 23 June 2025, the European Securities and Markets Authority (ESMA) published a Call for Evidence on a comprehensive approach to the simplification of financial transaction reporting. This initiative reflects ESMA’s ongoing commitment to reduce regulatory burden while maintaining robust supervisory oversight.


Why it matters


Over the past decade, EU financial markets have been subject to multiple overlapping reporting regimes — MiFIR, EMIR, SFTR (and others such as REMIT and Securitisation). While each framework was designed with clear policy objectives, their coexistence has led to duplication, inconsistency, and high compliance costs. Industry estimates suggest reporting costs across MiFIR, EMIR and SFTR range between €1–4 billion annually.


Key issues identified by ESMA


  • Duplicative reporting of the same transactions under MiFIR, EMIR and REMIT.

  • Inconsistent definitions and terminology, complicating reconciliation.

  • Dual-sided reporting obligations under EMIR and SFTR, unique to the EU, adding operational complexity.

  • Fragmented IT systems and reporting channels, increasing costs for firms and authorities alike.


Simplification options under consideration

ESMA is exploring two main avenues:


🔹 Option 1: Removal of duplication in current frameworks

  • Sub-option 1a: Delineation by instrument (MiFIR = ETD, EMIR = OTC).

  • Sub-option 1b: Delineation by event (MiFIR = transactions, EMIR = post-trade events).


🔹 Option 2: “Report once” principle

  • Sub-option 2a: Full integration of MiFIR, EMIR and SFTR under a single template.

  • Sub-option 2b: Expansion of “report once” to include other regimes such as REMIT or Solvency II.


Next steps

  • Stakeholders are invited to provide feedback by 19 September 2025.

  • ESMA expects to publish a final report in early 2026, setting out preferred simplification options.


Why firms should engage

This consultation represents a unique opportunity for market participants to shape the future of EU transaction reporting. The choices made could redefine cost structures, compliance models, and supervisory data flows for years to come.

 
 

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