The Depository Trust & Clearing Corporation (DTCC) has welcomed the European Securities and Markets Authority's (ESMA) Interim Report on the future of transaction reporting in the European Union, highlighting a strong industry consensus for a more streamlined system.
Michele Hillery, Managing Director and Head of Repository & Derivatives Services at DTCC, stated that extensive industry feedback has validated ESMA's analysis of the primary cost drivers in EU trade and transaction reporting.
“DTCC welcomes ESMA’s Interim Report... and appreciates the extensive, industry-wide engagement throughout their consultation," Hillery said. "The feedback from the industry highlighted strong momentum toward a more standardized and efficient reporting framework across the EU."
According to Hillery, industry respondents showed a clear preference for solutions that simplify reporting by focusing on data fields with direct supervisory value. This approach aims to reduce overlaps, increase global alignment, and better balance costs with benefits.
Two primary paths forward emerged from the feedback:
Option 1a:
A short-term strategy to reduce duplicative reporting by eliminating overlaps across different EU regulations.
Option 2a:
A longer-term "report once" model that consolidates all reporting requirements into a single, integrated framework.
"The industry’s alignment around these priorities underscores the importance of moving toward a more unified framework that reduces operational friction," Hillery noted.
DTCC is now anticipating ESMA’s Final Report, which is expected in July 2026 and will detail the chosen approach and implementation plan.
"In the interim, DTCC remains committed to supporting the industry through this transition by sharing insights, engaging proactively with stakeholders, and ensuring firms have the tools and operational readiness needed as the regulatory landscape evolves,” Hillery concluded.
