Key Changes Introduced by the FCA
Reduction in Reportable Fields
The FCA has reduced the MiFIR reportable fields from 65 to 52. This change is intended to remove data elements considered less useful from a supervisory perspective while allowing firms to focus on reporting higher quality and more relevant information.
Scope Restricted to UK Venue-Traded Instruments
One of the most significant reforms is the proposal to reduce the scope of the transaction reporting regime to financial instruments tradeable on UK trading venues only. Under the current framework, firms are also required to report instruments traded solely on EU venues. The FCA estimates that this change will remove approximately seven million financial instruments from scope, significantly reducing reporting populations and associated reference data maintenance requirements.
Removal of FX Derivatives from the Scope
The FCA has confirmed that FX derivatives will be removed from the scope of UK transaction reporting regime. The FCA considers UK EMIR reporting sufficient for obtaining the required information and expects this change to reduce costs for more than 400 UK firms.
Reduce Remediation Burden
The default back-reporting period will be reduced from five years to three years. This change will reduce the volume of historical corrections and resubmissions that firms may be required to undertake when addressing transaction reporting issues.
Conditional Single-Sided Reporting
The FCA has introduced a conditional single-sided reporting framework whereby a receiving firm may submit a transaction report using information provided by the sending firm. This removes the need for both parties to report a transaction while maintaining effective market oversight.
