FCA Unveils New Rules to Slash Transaction Reporting Costs by £100m Annually | LeapRate
The UK’s Financial Conduct Authority (FCA) has finalised a set of rules aimed at making transaction reporting requirements simpler, smarter and more proportionate for firms, with the changes expected to save industry more than £100m a year.
Transaction reports remain central to the FCA’s ability to detect market abuse, monitor market functioning and supervise firms. The regulator said the new framework will preserve the accuracy and quality of data it receives while stripping out duplicative or low value reporting obligations that have weighed on firms’ compliance budgets.
Among the key changes, the number of transaction reporting fields will be cut from 65 to 52. Foreign exchange derivatives will be removed from reporting requirements altogether, benefiting more than 400 firms. Reporting obligations will also be lifted for roughly 7 million financial instruments, including equities, bonds and certain derivatives traded solely on EU venues, a move expected to save approximately £32m annually on its own.
Additionally, the window for correcting historical reporting errors will shrink from five years to three, cutting the volume of reports requiring resubmission by a third.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said transaction reports are “the backbone” of the regulator’s market oversight work, adding that the streamlined approach delivers “meaningful cost relief” without compromising data quality.
The rules take effect on 3 April 2028, giving firms time to adapt systems, though the FCA will allow early adoption for firms that are ready. It will continue coordinating with the Bank of England and Treasury on reporting harmonisation.
