The European Securities and Markets Authority (ESMA) hasissued a call for evidence to simplify financial transaction reporting. Theconsultation is part of an EU effort to reduce regulatory burdens. It focuseson overlaps across reporting regimes such as MiFIR, EMIR, and SFTR.Forex Brokers Face Costly Reporting OverlapsForex brokers dealing in derivatives like FX swaps,forwards, and contracts for difference (CFDs) are among the entities affected.Under current rules, a single transaction may need to be reported undermultiple regimes. MiFIR requires reporting for transparency purposes, whileEMIR focuses on risk monitoring. This leads to duplicated efforts and highercosts.📞 #ESMA invites stakeholders to share their feedback on opportunities to simplify, better integrate, and streamline supervisory reporting → https://t.co/Pa8T5XxnLx.⏰ Deadline: 19 September 2025 pic.twitter.com/NuNgCYch0t— ESMA - EU Securities Markets Regulator 🇪🇺 (@ESMAComms) June 23, 2025ESMA estimates that about one-third of all EMIR-reportedtransactions are also covered by MiFIR. The combined reporting cost to theindustry is estimated at between €1 billion and €4 billion per year. Smallerbrokers face particular challenges, as compliance efforts may outweigh theirbusiness scale.You may find it interesting at FinanceMagnates.com: ESMAAsks Firms and Trade Bodies: Are Rules Making It Harder for Retail Investment?Two Options Proposed for SimplificationThe paper outlines two main approaches for simplification.Option 1 proposes removing overlaps by separating reportingeither based on the type of instrument—where exchange-traded derivatives wouldbe reported under MiFIR and over-the-counter trades under EMIR—or by the typeof event, with transactions reported under MiFIR and post-trade events such asmargin updates reported under EMIR.Option 2 introduces a “report once” framework. Under thisapproach, firms would submit data through a unified template. This would coverrequirements across MiFIR, EMIR, and SFTR. Both options include a possibleremoval of dual-sided reporting, where both counterparties report the sametrade.ESMA Seeks Feedback on Reporting SimplificationESMA is collecting feedback from market participants.Brokers are encouraged to share cost estimates and views on simplification.Specific questions in the paper address cost burdens, proportionality measuresfor smaller firms, and transition challenges.Feedback is open until 19 September 2025. A final report isexpected in early 2026. ESMA says the findings will inform future regulatorychanges.This article was written by Tareq Sikder at www.financemagnates.com.