The European Securities and Markets Authority (ESMA) has published a cost-benefit analysis of simplification scenarios for transaction reporting under the Markets in Financial Instruments Regulation (MiFIR), the European Market Infrastructure Regulation (EMIR), and the Securities Financing Transactions Regulation (SFTR). The analysis, prepared by Deloitte and dated 2 July 2026, examines potential reductions in reporting burdens while maintaining regulatory objectives.
The document assesses various simplification options, including reducing data fields, harmonising reporting formats, and streamlining reconciliation processes. It evaluates the trade-offs between cost savings for market participants and the potential impact on transparency and supervisory oversight. The analysis aims to inform ESMA's future policy recommendations to the European Commission as part of the broader simplification and burden reduction agenda.
Stakeholders likely to be affected include investment firms, trading venues, and central counterparties, which face significant compliance costs under current reporting obligations. The analysis suggests that targeted simplifications could reduce operational costs for these entities, particularly smaller firms, without substantially compromising the quality of data available to regulators. However, any reduction in data granularity may limit the ability of national competent authorities and ESMA to detect market abuse and monitor systemic risk.
The publication follows the European Commission's ongoing efforts to simplify EU financial regulation, as outlined in its 2025 competitiveness communication. ESMA is expected to use the analysis to develop technical standards and guidance, with a public consultation likely in the coming months.