The European Securities and Markets Authority (ESMA) has proposed a comprehensive simplification of financial transaction reporting, aiming to reduce costs and eliminate data duplication across multiple regulatory frameworks. In a final report published on 2 July 2026, ESMA outlines recommendations to streamline reporting obligations under the Markets in Financial Instruments Regulation (MiFIR), the European Market Infrastructure Regulation (EMIR), and the Securities Financing Transactions Regulation (SFTR).
The proposals include harmonising data fields, introducing a single reporting gateway, and aligning reporting formats to reduce the administrative burden on market participants. ESMA estimates that the changes could cut industry compliance costs by up to 30% while maintaining regulatory oversight. The report follows a call for evidence launched in 2025, which gathered input from market participants, national competent authorities, and other stakeholders. ESMA's recommendations will now be submitted to the European Commission for consideration in potential legislative amendments.
The proposals are expected to benefit financial institutions, particularly smaller firms, by reducing duplication and simplifying compliance processes. However, the transition to a new reporting system may require significant upfront investment in technology and training. National regulators will need to adapt their supervisory frameworks to the new standards.
ESMA's report also highlights trade-offs between simplification and data granularity, noting that some data fields may be lost, potentially affecting market monitoring and financial stability analysis.
The European Commission is expected to assess the proposals in the context of its broader simplification agenda for EU financial services regulation.