FCA reveals transaction reporting proposals to cut costs
24 November 2025 UK
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The Financial Conduct Authority (FCA) has revealed a number of proposals to the Markets in Financial Instruments Directive (MiFID) to cut costs of transaction reporting.
Over seven billion transaction reports are received by the FCA each year to support the cleanliness, transparency, and resilience of the UK markets.
The proposals aim to not only reduce costs to the industry 鈥� which currently stand at 拢493 million annually 鈥� but to support growth and improve the quality of data received on an annual basis.
The FCA has suggested removing foreign exchange derivatives from reporting requirements, reducing costs for over 400 firms.
Further, it proposes removing reporting requirements for six million financial instruments including equities, bonds, and certain derivatives that are only traded on EU trading venues.
Lastly, the FCA intends to reduce the period for correcting historic reporting errors from five to three years, lowering the number of transaction reports that need to be resubmitted by a third.
The FCA estimates the changes being proposed will reduce the annual cost to approximately 拢385 million 鈥� resulting in a net annual cost saving of 拢108 million.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, says: 鈥淭ransaction reports are essential, helping us to detect financial crime and monitor the resilience of our markets. But we can be smarter, and by clarifying and streamlining requirements we expect to receive more accurate and complete reports.
鈥淩educing costs while improving the quality of the data we receive is a no-brainer. It means we can support growth and receive better market intelligence to act on.鈥�
The transaction reporting rules were introduced in 2018 and onshored from the EU on 31 December 2020.
The FCA will work in lockstep with the Bank of England and the Treasury to remove any unnecessary duplication of transaction and post-trade reporting requirements as part of a new long-term approach.
Over seven billion transaction reports are received by the FCA each year to support the cleanliness, transparency, and resilience of the UK markets.
The proposals aim to not only reduce costs to the industry 鈥� which currently stand at 拢493 million annually 鈥� but to support growth and improve the quality of data received on an annual basis.
The FCA has suggested removing foreign exchange derivatives from reporting requirements, reducing costs for over 400 firms.
Further, it proposes removing reporting requirements for six million financial instruments including equities, bonds, and certain derivatives that are only traded on EU trading venues.
Lastly, the FCA intends to reduce the period for correcting historic reporting errors from five to three years, lowering the number of transaction reports that need to be resubmitted by a third.
The FCA estimates the changes being proposed will reduce the annual cost to approximately 拢385 million 鈥� resulting in a net annual cost saving of 拢108 million.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, says: 鈥淭ransaction reports are essential, helping us to detect financial crime and monitor the resilience of our markets. But we can be smarter, and by clarifying and streamlining requirements we expect to receive more accurate and complete reports.
鈥淩educing costs while improving the quality of the data we receive is a no-brainer. It means we can support growth and receive better market intelligence to act on.鈥�
The transaction reporting rules were introduced in 2018 and onshored from the EU on 31 December 2020.
The FCA will work in lockstep with the Bank of England and the Treasury to remove any unnecessary duplication of transaction and post-trade reporting requirements as part of a new long-term approach.
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