The European Securities and Markets Authority (ESMA) has unveiled a plan to simplify transaction reporting across the EU, targeting up to €1 billion in annual savings for market participants. The proposal introduces a “report once” model designed to reduce duplication and improve data quality used by regulators.

Fragmentation Drives Costs

Transaction reporting plays a key role in monitoring risk and detecting market abuse. However, ESMA found that overlapping rules under MiFIR, EMIR, and SFTR have created duplication and inconsistent requirements. Firms often submit similar data multiple times, which increases operational costs.

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Verena Ross, ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term Chair, said: “Transaction reporting is central to market transparency, risk monitoring and detecting market abuse. However, over time, fragmentation has led to duplication, inconsistent requirements and increased costs for market participants and authorities.”

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ESMA also pointed to frequent regulatory changes and dual-sided reporting obligations as key drivers of complexity. The regulator proposes a single integrated reporting system that allows firms to submit transaction data once. The system would use a modular structure to reflect different asset classes while enabling authorities to reuse the data across supervisory functions.

“Report Once” Framework

Ross said the approach could “significantly reduce costs while improving the quality and usability of data for supervisors.”

A cost-benefit analysis shows that the model could deliver annual net savings of €250 million to €1 billion. Recurring costs could fall by around 22% to 24%, with total net benefits reaching up to €4.9 billion over ten years. ESMA expects implementation costs to be recovered within three to four years.

Alongside the long-term plan, ESMA proposed interim measures. These include expanding delegated reporting, simplifying intragroup exemptions, and removing duplicative requirements.

The regulator will now engage with EU institutions on the proposal. The rollout will require legislative changes, phased implementation, and coordination with industry stakeholders on data standards and reporting systems.

European regulators are pushing for stronger centralized supervision as cross-border trading exposes gaps in national oversight. ESMA Chair Verena Ross and CySEC Chairman George Theocharides said that different interpretations of EU rules across member states create inconsistency and risk. Ross noted that firms operating across the bloc face up to 27 supervisory approaches, especially in fast-moving sectors like crypto and artificial intelligence.

The push comes as complaints against Cyprus-based brokers rise and regulators tighten rules to curb arbitrage. Both ESMA and CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term also highlighted crypto and AI as key focus areas, with ongoing efforts to align supervision, expand oversight, and prepare for potential legislative changes at the EU level.