The European Securities and Markets Authority (ESMA) has issued a call for evidence to simplify financial transaction reporting. The consultation is part of an EU effort to reduce regulatory burdens. It focuses on overlaps across reporting regimes such as MiFIR, EMIR, and SFTR.

Forex Brokers Face Costly Reporting Overlaps

Forex brokers dealing in derivatives like FX swaps, forwards, and contracts for difference (CFDs) are among the entities affected. Under current rules, a single transaction may need to be reported under multiple regimes. MiFIR requires reporting for transparency purposes, while EMIR focuses on risk monitoring. This leads to duplicated efforts and higher costs.

📞 #ESMA invites stakeholders to share their feedback on opportunities to simplify, better integrate, and streamline supervisory reporting → https://t.co/Pa8T5XxnLx.

⏰ Deadline: 19 September 2025 pic.twitter.com/NuNgCYch0t

— ESMA - EU Securities Markets Regulator 🇪🇺 (@ESMAComms) June 23, 2025

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 estimates that about one-third of all EMIR-reported transactions are also covered by MiFIR. The combined reporting cost to the industry is estimated at between €1 billion and €4 billion per year. Smaller brokers face particular challenges, as compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term efforts may outweigh their business scale.

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Two Options Proposed for Simplification

The paper outlines two main approaches for simplification.

Option 1 proposes removing overlaps by separating reporting either based on the type of instrument—where exchange-traded derivatives would be reported under MiFIR and over-the-counter trades under EMIR—or by the type of event, with transactions reported under MiFIR and post-trade events such as margin updates reported under EMIR.

Option 2 introduces a “report once” framework. Under this approach, firms would submit data through a unified template. This would cover requirements across MiFIR, EMIR, and SFTR. Both options include a possible removal of dual-sided reporting, where both counterparties report the same trade.

ESMA Seeks Feedback on Reporting Simplification

ESMA is collecting feedback from market participants. Brokers are encouraged to share cost estimates and views on simplification. Specific questions in the paper address cost burdens, proportionality measures for smaller firms, and transition challenges.

Feedback is open until 19 September 2025. A final report is expected in early 2026. ESMA says the findings will inform future regulatory changes.