Regulatory & Market Updates

EU/Europe

A significant milestone in the EU’s reporting simplification agenda was reached on 2 July 2026, when ESMA published its Final Report on the simplification of financial transaction reporting across MiFIR, EMIR and SFTR, slightly ahead of the timetable anticipated following the publication of the Interim Report.

Building on feedback received through its 2025 Call for Evidence and supporting cost-benefit analyses, ESMA concluded that meaningful simplification requires a more fundamental redesign of the reporting framework rather than incremental changes to individual regimes.

At the core of ESMA’s recommendations is a long-term “Report Once” framework based on a single reporting architecture across MiFIR, EMIR and SFTR. The target model would introduce harmonized templates, data definitions and validation rules while reducing duplication and improving consistency across reporting regimes. ESMA believes this integrated approach offers the most effective route to addressing fragmentation within the current framework.

Recognizing that such reform will require significant legislative change and a multi-year implementation period, ESMA also proposed a package of short- and medium-term relief measures. These include expanding delegated reporting under EMIR and SFTR, streamlining the EMIR intragroup exemption process, reducing historical back-reporting requirements from five years to three years, introducing targeted MiFIR transaction reporting exemptions, and rationalizing selected reporting fields. While the emphasis on delegated reporting aligns with the direction outlined in ESMA’s Interim Report, it also reveals a divergence between the regulator’s preference for broader delegation arrangements and the industry’s stronger endorsement of single-sided reporting as a means of simplification. The Final Report has now been submitted to the European Commission, with phased implementation of shorter-term measures expected from 2027 and the longer-term “Report Once” framework potentially becoming operational in the second half of 2031.

ESMA’s work on the MiFIR Review continues to progress, with the European Commission adopting, on 13 July, the outstanding RTS stemming from ESMA’s Final Report on transparency for derivatives, package orders and input/output data for the derivatives consolidated tape. While the RTS brings greater clarity to the framework, some reference data and implementation issues remain under discussion. ESMA continues to engage with market stakeholders on specific aspects of the regime, and market participants will be looking closely to see whether the remaining questions are addressed through future Level 3 guidance.

United States – CFTC and SEC

The United States has also become a focal point in the global push towards reporting simplification and regulatory harmonization. Over the past month, the SEC and CFTC have launched a series of consultations signaling a willingness to revisit key elements of the post-DoddFrank reporting framework.

The most significant initiative is the joint Request for Comment on Swap and Security-Based Swap Data Reporting, which seeks industry feedback on reducing duplicative reporting obligations, improving data quality, standardizing identifiers and strengthening alignment between the two regimes. For firms subject to both frameworks, the exercise represents a significant opportunity to influence the future direction of US trade reporting and potentially address long-standing operational inefficiencies arising from overlapping SEC and CFTC requirements.

In parallel, the CFTC has published a Notice of Proposed Rulemaking on Data Reporting Requirements for Certain Event Contracts. The proposal would move fully collateralized event contracts from the swap reporting framework into the existing futures and options reporting regime. The SEC and CFTC have also launched a Request for Comment on the Further Definition of “Swap” and “Security-Based Swap” and on Alternative Compliance. The consultation seeks feedback on how regulatory boundaries should be applied to innovative products that may fall within the remit of both agencies, while also exploring potential alternative compliance mechanisms for firms operating across multiple regulatory frameworks.

Taken together, these initiatives suggest a broader reassessment of whether existing reporting frameworks remain fit for purpose and how reporting obligations can be streamlined without compromising regulatory oversight. While it remains to be seen how far the agencies are prepared to go in aligning their respective regimes, the consultations represent the clearest indication in several years that reducing fragmentation has become a regulatory priority in its own right. Comments on the joint SEC/CFTC consultations are due by 24 August 2026, while comments on the event contract proposal close on 26 August 2026.

United Kingdom – FCA and Bank of England

The FCA and Bank of England’s new Transaction and Post-trade Reporting Harmonization Taskforce held its inaugural meeting in July, marking the start of an ambitious program to simplify and harmonize reporting across UK MiFIR, UK EMIR and UK SFTR. Bringing together regulators and industry representatives, the Taskforce is structured around three working groups covering Policy, Strategy and Architecture, and will explore opportunities to reduce duplication, improve data consistency and develop a more streamlined reporting framework.

The early discussions suggest a strong commitment from the authorities to pursue meaningful reform rather than incremental adjustments. Regulators appear willing to consider a range of potential models rather than simply replicating ESMA’s emerging approach, reflecting the UK’s broader objective of designing a reporting framework tailored to its own market structure and supervisory needs. While still at an early stage, the initiative reinforces a growing international trend towards greater harmonization and more efficient collection of regulatory data, while providing market participants with an opportunity to help shape the future direction of the UK’s transaction and post-trade reporting framework.