On Feb. 7, ESMA issued update on contribution to reduction of burden.
ESMA published a release confirming that it will be supporting the European Commission's objective to simplify and reduce the reporting burden in financial sector.
In Dec. 2024 the ESMA Board of Supervisors discussed how to best contribute to efficient simplification and burden reduction actions, while ensuring the preservation of the main objectives of financial stability, orderly markets, and investor protection.
ESMA underlines that the work should not be about deregulation, but about avoiding duplication and streamlining some of reporting requirements for market participants.
Concrete example is proposed change related to data reporting for transparency purposes under MiFIR regime, reuse of already reported transaction data allows for removal of duplicate reporting obligations, related IT systems used to calculate.
This and other future initiatives will help to reduce cost and complexity for companies.
ESMA will look across its entire remit, including data, policy and supervision, to identify ways to ensure that the measures applicable to market participants are proportionate.
First areas for focus are transparency and volume cap regimes, intends to discontinue these reporting flows and perform calculations using transaction data already reported.
Will also discontinue voluntary publication of quarterly systematic internalizer (SI) calculations from start 2025, focus on further streamlining relevant internal processes.
Other initiatives will include consolidation and alignment of reference data for the purpose of transaction reporting and transparency, and the alignment of specific requirements related to transaction data with other reporting regimes.
ESMA is also consulting on proposals, in accordance with European Single Electronic Format (ESEF) to digitize sustainability disclosures in phased way to spread the reporting burden over number of years, burden of disclosures of financial statements.
Next Steps
ESMA will continue to engage with its wide range of stakeholders to actively identify areas where further simplification and burden reduction could be achieved.
