Over £100 million in savings have
been set out by the Financial Conduct Authority (FCA), as the
regulator proposes to streamline transaction reporting
requirements.
The FCA receives over 7 billion MiFID
transaction reports a year used to support the cleanliness,
transparency and resilience of UK
markets.
To reduce costs for firms, support
growth and improve the quality of data received, the FCA has
proposed:
-
Removing foreign exchange
derivatives from reporting requirements, reducing costs for
over 400 firms
-
Removing reporting requirements for
6 million financial instruments including
equities, bonds
and certain derivatives that are only traded on
EU trading venues
-
Reducing the period for
correcting historic reporting errors from 5
to 3 years, lowering the number of transaction reports that
need to be resubmitted by a
third
Therese Chambers, joint
executive director of enforcement and market oversight,
said:
“Transaction 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.
“Reducing 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.”
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.
Notes to
editors:
-
A copy of the consultation paper is
available on request from the press office.
-
A background briefing for media will
be held remotely from 10:30 - 11:00 with Therese Chambers,
joint executive director of enforcement and market oversight,
to discuss the proposals in more detail. Journalists can
confirm attendance by emailing Press.Office@fca.org.uk
-
The current annual
cost of MiFID transaction reporting to
industry is £493
million.
-
The FCA estimates the changes we are
proposing will reduce the cost to approximately £385
million. Resulting in a net annual cost saving to industry of
£108 million.
-
The transaction reporting rules were
introduced in 2018 and onshored from the EU on 31
December 2020. The FCA is working to deliver a
streamlined framework that will cut costs for business while
ensuring effective regulatory oversight of the
UK's world-leading capital
markets.
-
As part of the new long-term
approach to transaction reporting, the FCA will work with the
Bank of England and Treasury to streamline
requirements and reduce duplication across different data
collections, including UK MiFIR, EMIR and
SFTR.
