The Financial Conduct Authority has outlined potential savings of over £100 million by adjusting transaction reporting requirements. Retail brokers are expected to benefit from lower costs and improved market data quality.

The regulator, which receives more than seven billion transaction reports under MiFID each year, uses this data to help maintain the transparency and resilience of UK markets.

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Recently, the FCA proposed reducing data reporting requirements for around 16,000 firms, including those offering CFDs if they are affected. The plan would remove three specific data collections, aiming to lower the regulatory burden, save costs, and support economic growth.

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The FCA also launched its My FCA platform to streamline reporting and invited firms to respond to the consultation.

Reporting Requirements Cut for Financial Instruments

To further reduce costs, support market growth, and improve data quality, the FCA has suggested several changes.

These include removing foreign exchange derivatives from reporting, which would affect over 400 firms, and dropping reporting requirements for around six million financial instruments, such as equities , bonds, and certain derivatives traded only on EU venues.

The period for correcting historic reporting errors would also be shortened from five years to three, reducing the number of reports needing resubmission by roughly a third.

FCA To Reduce Reporting Duplication

Therese Chambers, joint executive director of enforcement and market oversight, said transaction reports are “essential, helping us to detect financial crime and monitor the resilience of our markets.” She added that clarifying and streamlining requirements should lead to “more accurate and complete reports” while reducing costs.

The FCA said it will coordinate with the Bank of England and the Treasury to remove duplication in transaction and post-trade reporting as part of a long-term approach.