Transaction reports are critical to the FCA’s ability to detect and investigate market abuse, monitor market functioning and supervise firms effectively.

The new rules are designed to ensure the FCA continues to receive accurate, high-quality data while eliminating duplicative or low-value reporting. By removing unnecessary reporting, the changes will reduce regulatory burden and support growth and competitiveness. 

It’s thought the changes will save firms more than £100m a year.

Therese Chambers, joint executive director of enforcement and market oversight, said: “Transaction reports are the backbone of our market oversight work — they help us catch financial crime, monitor market stability and supervise firms effectively.

“By taking a smarter, streamlined approach to reporting, we’re giving firms meaningful cost relief while ensuring we continue to receive the accurate, high-quality data that keeps UK markets clean and competitive.”

Key changes include:

•    Reducing the number of transaction reporting fields from 65 to 52.
•    Removing foreign exchange derivatives from reporting requirements, reducing costs for over 400 firms.
•    Removing reporting requirements for 7 million financial instruments including equities, bonds and certain derivatives that are only traded on EU trading venues. This will save firms approximately £32m annually.
•    Reducing the period for correcting historical reporting errors from 5 to 3 years, lowering the number of transaction reports that need to be resubmitted by a third.

The changes will take effect on 3 April 2028, giving firms adequate time to prepare, test and implement updated reporting systems. However, a flexible supervisory approach will allow firms that are ready to make certain changes sooner.

The FCA says it will continue to work closely with the Bank of England and the Treasury to harmonise transaction and post-trade reporting regulations.