The European Securities and Markets Authority (ESMA) has unveiled a plan to simplify transaction reporting across the EU, targeting up to €1 billion in annual savings for market participants. The proposal introduces a “report once” model designed to reduce duplication and improve data quality used by regulators.Fragmentation Drives CostsTransaction reporting plays a key role in monitoring risk and detecting market abuse. However, ESMA found that overlapping rules under MiFIR, EMIR, and SFTR have created duplication and inconsistent requirements. Firms often submit similar data multiple times, which increases operational costs.Verena Ross, ESMA Chair, said: “Transaction reporting is central to market transparency, risk monitoring and detecting market abuse. However, over time, fragmentation has led to duplication, inconsistent requirements and increased costs for market participants and authorities.”You may also like: CySEC Chairman Backs EU Supervision Push, Wants a "Level Playing Field"ESMA also pointed to frequent regulatory changes and dual-sided reporting obligations as key drivers of complexity. The regulator proposes a single integrated reporting system that allows firms to submit transaction data once. The system would use a modular structure to reflect different asset classes while enabling authorities to reuse the data across supervisory functions.“Report Once” FrameworkRoss said the approach could “significantly reduce costs while improving the quality and usability of data for supervisors.”A cost-benefit analysis shows that the model could deliver annual net savings of €250 million to €1 billion. Recurring costs could fall by around 22% to 24%, with total net benefits reaching up to €4.9 billion over ten years. ESMA expects implementation costs to be recovered within three to four years.Alongside the long-term plan, ESMA proposed interim measures. These include expanding delegated reporting, simplifying intragroup exemptions, and removing duplicative requirements.The regulator will now engage with EU institutions on the proposal. The rollout will require legislative changes, phased implementation, and coordination with industry stakeholders on data standards and reporting systems.European regulators are pushing for stronger centralized supervision as cross-border trading exposes gaps in national oversight. ESMA Chair Verena Ross and CySEC Chairman George Theocharides said that different interpretations of EU rules across member states create inconsistency and risk. Ross noted that firms operating across the bloc face up to 27 supervisory approaches, especially in fast-moving sectors like crypto and artificial intelligence. The push comes as complaints against Cyprus-based brokers rise and regulators tighten rules to curb arbitrage. Both ESMA and CySEC also highlighted crypto and AI as key focus areas, with ongoing efforts to align supervision, expand oversight, and prepare for potential legislative changes at the EU level. This article was written by Jared Kirui at www.financemagnates.com.

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