The European Securities and Markets Authority proposed a major redesign of EU transaction reporting in its final report published July 2, 2026, stating a new 'Report Once' framework could save market participants between €250 million and €1 billion a year while reducing recurring reporting costs by 22% to 24%. ESMA said transaction reporting under MiFIR, EMIR and SFTR has become fragmented, duplicative and expensive because requirements have expanded through separate regulatory regimes. The reform targets one of the most expensive operational layers in European financial markets, affecting banks, brokers, buy-side firms, CCPs, trade repositories, non-financial corporates and RegTech providers within the EU's post-crisis transparency standards.
ESMA Estimates Annual Savings Between €250 Million and €1 Billion
ESMA's cost-benefit analysis estimates current annual operating costs for transaction reporting at between €1.0 billion and €4.2 billion. Under the preferred long-term structure, the industry could recover implementation costs within three to four years and then benefit from sustained annual savings of €250 million to €1.0 billion. The regulator projects recurring cost reduction of 22% to 24% and 10-year discounted net benefits of €1.2 billion to €4.9 billion. Supervisory cost reduction is estimated at 9% to 11%.
Current Reporting Costs Reach Up To €4.2 Billion Annually
ESMA said the main cost drivers are frequent and unsynchronised regulatory changes, duplicative reporting across different frameworks and channels, and dual-sided reporting with associated reconciliation processes. Transaction reporting expanded across multiple regimes, particularly MiFIR for financial instruments, EMIR for derivatives and SFTR for securities financing transactions. Each framework was built for legitimate supervisory reasons but developed separately. Firms often report economically similar transactions several times through different routes, using different definitions, schemas, controls and reporting infrastructures, creating duplicated technology, operations and error management.
Report Once Model Creates Single Integrated Framework
The Report Once model would create a single integrated transaction reporting framework across MiFIR, EMIR and SFTR. Instead of firms submitting overlapping reports into separate regulatory silos, transaction data would be reported once through a common modular structure. That data could then be reused by different authorities for different supervisory purposes. ESMA says the model would use one type of reporting infrastructure, structural simplification and a design that addresses the root causes of current cost drivers. The framework would still account for product-specific reporting needs, but within one integrated architecture.
Three Structural Cost Drivers Identified
ESMA's final report identifies three structural sources of cost. The first is regulatory complexity created by frequent and unsynchronised changes. Firms have to update reporting systems repeatedly as MiFIR, EMIR and SFTR evolve on different timelines. ESMA says change-management costs can be of a similar order of magnitude to recurring run costs for major reporting entities. The second is duplicative reporting and fragmented channels. Derivatives and other transactions can be reported multiple times under different regimes, requiring parallel pipelines, controls and connectivity. The third is dual-sided reporting under EMIR and SFTR, where both counterparties report the same transaction, creating pairing, matching, exception management and correction processes.
ESMA Recommends Short-Term Relief Measures
ESMA does not expect the Report Once framework to arrive immediately. The final report recommends a staged approach, combining long-term structural reform with short and medium-term relief measures. The short-term measures include reducing back-reporting, targeted exemptions from MiFIR RTS 22 requirements, deprioritising selected MiFIR fields, adjusting EMIR reconciliation, simplifying SFTR reporting of settlement fails and simplifying errors and omissions notifications. Medium-term measures include revision of dual-sided reporting and streamlining intragroup reporting exemption procedures.
Large Banks and Brokers Expected To Benefit Most
The biggest beneficiaries are likely to be large banks, brokers and investment firms that maintain multiple reporting pipelines across MiFIR, EMIR and SFTR. Buy-side firms and non-financial corporates could also benefit from reduced operational burden, especially where delegated reporting becomes easier. Deloitte's cost-benefit analysis, prepared for ESMA, found that non-financial corporates, sell-side firms and buy-side firms should realise cost reductions from a move to the Report Once model. Market infrastructure firms have a more mixed outlook, with some facing higher costs or revenue pressure if reportable volumes decline.
RegTech Market Faces Structural Shift
The Report Once model could reshape the RegTech market. Today, many firms use separate systems, service providers and control frameworks to comply with MiFIR, EMIR and SFTR. If ESMA's model is implemented, demand may move away from siloed reporting tools and toward platforms capable of handling cross-regime data models, common identifiers, validation, data lineage, exception management and supervisory reuse. That is likely to favour vendors with strong data architecture, modular workflows and the ability to adapt to future reporting standards.
Implementation Timeline Extends Beyond 2026
ESMA's factsheet sets out a long implementation path. The call for evidence was launched in June 2025, feedback closed in September 2025, the interim report was published in May 2026, and the final report was published on July 2, 2026. The long-term Report Once framework depends on completion of the relevant legislative cycle, followed by full integrated framework development and a go-live after a post-implementation lead time. The next stage involves EU institutional discussions and legislative work.
Data Quality Preservation Remains Critical Challenge
Supervisors rely on transaction reporting for market abuse surveillance, systemic risk monitoring, financial stability analysis and policy decisions. ESMA's simplification principles stress that reform must preserve information value, reduce overlaps, pursue global alignment and balance costs against benefits. The final framework will need to decide which fields are genuinely useful, which can be removed and how data can be reused without creating gaps.
FAQ
What did ESMA propose on July 2, 2026 regarding EU transaction reporting?
ESMA published its final report on July 2, 2026 proposing a 'Report Once' framework that would create a single integrated transaction reporting structure across MiFIR, EMIR and SFTR. The regulator estimates the framework could save market participants between €250 million and €1 billion annually while reducing recurring reporting costs by 22% to 24%.
Why did ESMA say current EU transaction reporting has become expensive?
ESMA said the main cost drivers are frequent and unsynchronised regulatory changes, duplicative reporting across different frameworks and channels, and dual-sided reporting with associated reconciliation processes. Current annual operating costs are estimated at between €1.0 billion and €4.2 billion because MiFIR, EMIR and SFTR developed separately, forcing firms to report economically similar transactions multiple times through different routes.
When would the Report Once framework be implemented?
ESMA's factsheet shows the long-term Report Once framework depends on completion of the relevant legislative cycle, followed by full integrated framework development and a go-live after a post-implementation lead time. The final report was published July 2, 2026, with the next stage involving EU institutional discussions and legislative work. Short-term relief measures are recommended for earlier implementation.
