The European Securities and Markets Authority (ESMA) is advancing a broad simplification of EU reporting framework, with transaction reporting emerging as a central pillar.
Following its 2025 Call for Evidence, ESMA’s Interim Report published 4th of May outlines its plans to reduce duplication, streamline data flows, and lower operational costs, without weakening supervisory oversight.
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Where the Real Problems Are
ESMA’s findings confirm that the main inefficiencies are structural. Firms are not struggling because reporting requirements exist, but because the same data is processed repeatedly across disconnected systems.
The most common issues can be summarised as follows:
Issue | What’s Happening | Business Impact |
Duplicate reporting | Same trade reported under multiple regimes | Higher costs, parallel systems |
Dual-sided reporting | Both counterparties report | Reconciliation burden, mismatches |
Fragmented channels | Multiple reporting routes (TRs, ARMs, NCAs) | Operational complexity |
Constant updates | Unsynchronised regulatory changes | Ongoing IT costs |
What stands out is that these issues are interconnected. Fragmentation leads to duplication, duplication leads to reconciliation, and all of this increases both cost and operational risk.
As a result, firms often maintain redundant infrastructure, not because it adds value, but because the regulatory framework requires it.
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ESMA’s Two-Step Plan
To address these challenges, ESMA is proposing a phased approach that balances short-term relief with long-term transformation. This reflects industry feedback, which generally supports simplification but emphasises the need for predictability and manageable implementation timelines.
Step 1: Fix What’s Broken (Short Term)
The first phase focuses on improving the existing system rather than replacing it. The objective is to remove the most obvious inefficiencies while minimising disruption.
Step 2: Move to “Report Once” (Long Term)
The longer-term vision is more ambitious and aims to address the root cause of duplication. Under the “report once” model, firms would submit a single, harmonised report that satisfies all relevant regulatory frameworks.
This would enable data to be shared across authorities, rather than submitted multiple times. In theory, it could eliminate duplication entirely and significantly improve data consistency.
Find out more in the full analysis published on our Intelligence Portal.
