The Financial Conduct Authority (FCA) receives over 7 billion transaction reports per year and has released its latest Discussion Paper, DP24/2, aimed at improving the UK transaction reporting regime.
In what has been an incredibly busy year for transaction reporting, the FCA is maintaining the momentum and is actively seeking feedback from relevant parties to ensure the UK transaction reporting regime is as effective as possible.
Feedback will help shape the future of UK transaction reporting, including the UK Markets in Financial Instruments Directive (MiFID), RTS 22 and RTS 23.
Until 14th February 2025, the Discussion Paper DP24/2 is actively seeking feedback on:
The scope of firms and financial instruments captured by requirements
The content of transaction reports
Identifiers for OTC derivatives
Instrument reference data
The benefit of simplification against cost of change
Harmonisation with other reporting rules
In terms of participants, the FCA is encouraging comments from:
MiFID investment firms or credit institutions with transaction reporting obligations.
UK branches of third country investment firms with transaction reporting obligations.
Operators of a UK trading venue (recognised investment exchange (RIE), multilateral trading facility (MTF) or an organised trading facility (OTF)).
Systematic internalisers (SI).
Approved reporting mechanisms (ARM) or approved publication arrangements (APA).
Firms authorised under the Alternative Investment Fund Manager Directive (AIFMD) or the Undertakings for Collective Investment in Transferable Securities (UCITS).
Market data service providers.
Individuals working within investment firms responsible for making investment or execution decisions.
Trade associations representing any of the groups listed above.
Professional advisors to the groups listed above.
Next steps
The FCA has set a deadline of 14th February 2025 for feedback - those wishing to comment on the Discussion Paper before the deadline can do so here - https://www.fca.org.uk/dp24-2-response-form
You can find the full release and further information from the FCA here - https://www.fca.org.uk/publications/discussion-papers/dp24-2-improving-uk-transaction-reporting-regime
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