The esma trade reporting framework aims to cut duplicate filings across the EU and save market participants up to €1 billion a year. ESMA set out a “report once” model that would let firms submit transaction data a single time. The regulator said the plan should also improve the quality of data used by supervisors.
Transaction reporting helps authorities track risk and spot market abuse. However, ESMA said overlapping rules under MiFIR, EMIR, and SFTR have led to repeated reporting and uneven requirements. As a result, firms often send similar information more than once, which raises operating costs.
Verena Ross said fragmentation has increased duplication, created inconsistent rules, and lifted costs for firms and authorities. She added that transaction reporting remains central to market transparency, risk monitoring, and the detection of market abuse.
ESMA Trade Reporting Framework Details
ESMA said frequent rule changes and dual-sided reporting duties have added to the burden. Therefore, it proposed a single reporting system with a modular design for different asset classes. The model would also let authorities reuse the same data across supervisory functions.
Ross said the approach could cut costs in a significant way and improve how supervisors use the data. Meanwhile, ESMA’s cost-benefit analysis showed annual net savings of €250 million to €1 billion. It also estimated recurring costs could drop by about 22% to 24%.
Total net benefits could reach as much as €4.9 billion over ten years. In addition, ESMA said firms could recover implementation costs within three to four years.
Interim Steps and Next Phase
Alongside the long-term plan, ESMA proposed several near-term steps. These include wider delegated reporting, simpler intragroup exemptions, and the removal of duplicate requirements. The regulator will now discuss the proposal with EU institutions.
ESMA said the rollout would need legislative changes, phased adoption, and work with industry groups on data standards and reporting systems. Separately, Ross and CySEC Chairman George Theocharides said differing interpretations of EU rules across member states create inconsistency and risk. Ross said firms working across the bloc can face up to 27 supervisory approaches.
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