ESMA has issued a final report as the next output from the “Call for evidence” process being run to determine how to reduce costs from transaction reporting. The focus of the process is reporting under EMIR, SFTR and MIFID II Transaction Reporting, which have a great deal of overlap and also involve reporting to different places. The process looked at several options. It also considers other matters such as two sided reporting and the scope relating to NFCs (Non Financial Counterparties).

This final report makes recommendations based on a cost benefit analysis. It includes:

• Recomending thta the “final state” be “option 2a” which involves movign the three schemas to one, in stages.
• Moving from 2 sided reporting to a waterfall based “required delegation”.
• Simplufying reporting destinations.

Many NFCs (and thus energy and commodity market participants) will only be subject to EMIR and therefore will see less benefit from the changes. However the change in 2 sided reporting together with the schema changes will have an impact over the coming years.

The report can be found here.