ESMA Unveils Single Framework to End Duplication in Trade Reporting, targeting up to €1 billion in annual savings for market participants

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 for regulators.

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

ESMA Chair Verena Ross stated, "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."

The regulator also cited frequent regulatory changes and dual-sided reporting obligations as key drivers of complexity. Its proposal is for a single integrated reporting system allowing firms to submit transaction data once, using a modular structure to reflect different asset classes while enabling authorities to reuse data across supervisory functions.

Ross said the approach could "significantly reduce costs while improving the quality and usability of data for supervisors." A cost-benefit analysis shows the model could deliver annual net savings of €250 million to €1 billion, with recurring costs falling by 22% to 24%. Total net benefits could reach €4.9 billion over ten years, with implementation costs recovered within three to four years.

Alongside the long-term plan, ESMA proposed interim measures including expanding delegated reporting, simplifying intra-group exemptions, and removing duplicative requirements. The regulator will now engage with EU institutions, with rollout requiring legislative changes, phased implementation, and coordination with industry on data standards.

The push for simplification aligns with a broader drive for stronger centralized EU supervision. ESMA and CySEC have highlighted different interpretations of rules across member states as creating inconsistency and risk, noting firms face up to 27 different supervisory approaches, particularly in fast-moving sectors like crypto and artificial intelligence.