The UK Financial Conduct Authority (FCA) has set out proposals to simplify MiFID transaction-reporting rules, estimating that the changes could reduce industry costs by more than £100 million a year.
The regulator currently receives more than seven billion transaction reports annually. Under the new proposal, foreign-exchange derivatives would be removed from the reporting scope, affecting over 400 firms. The FCA also suggests dropping reporting requirements for roughly six million instruments, including equities, bonds and certain derivatives, that are traded only on EU venues.
In addition, the period during which firms must correct historical reporting errors would be reduced from five years to three. According to the FCA, this could cut the number of resubmitted reports by about a third.
Accuracy and relevance
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said transaction reports remain central for detecting market abuse and monitoring stability, but argued that clearer, more targeted rules should lead to more accurate submissions.
The FCA notes that it will work with the Bank of England and HM Treasury to remove duplication between transaction-reporting and post-trade reporting regimes as part of a longer-term overhaul.
