FCA’s Single-Sided Trade Reporting Faces Industry Pushback

The UK’s Financial Conduct Authority (FCA) is encountering resistance to its proposals for increased single-sided trade reporting, with both investors and dealers expressing skepticism about the initiative. The plan, intended to ease the burden of MiFIR reporting, appears unlikely to gain widespread adoption, according to industry feedback.

What is Single-Sided Trade Reporting?

Single-sided trade reporting allows one party in a trade – either the buyer or the seller – to report the transaction details to regulators, rather than requiring both parties to do so. The FCA proposed encouraging greater use of this mechanism as a way to simplify reporting requirements and reduce costs for firms.

Why the Resistance?

Despite the FCA’s intentions, industry participants have voiced concerns. Buy-side firms are reportedly unlikely to utilize the single-sided reporting option, while larger dealers are hesitant to offer it to their clients. According to Risk.net, one source stated, “We really don’t suppose it’s going to be particularly attractive as a proposition to members.”

FCA’s Broader Transaction Reporting Efforts

The FCA’s push for single-sided reporting is part of a broader effort to streamline transaction reporting and improve market oversight. As outlined on the FCA’s website, transaction reports are crucial for detecting and investigating market abuse. The FCA requires transaction reports from UK MiFID investment firms, trading venue operators, UK branches of third-country investment firms, and certain AIFMs and CRD credit institutions.

Simplifying Reporting and Reducing Burden

The FCA has acknowledged that the current transaction reporting system is often overly complex and duplicative. In April 2025, the FCA indicated its intention to be proportionate in its data requests, asking only for information truly needed for market abuse investigations, as reported by The Financial Analyst. This includes potentially removing infrequently used data fields and leveraging data from other reporting regimes, such as EMIR reports for derivatives like FX.

Phased Implementation and Industry Guidance

The FCA is implementing these changes in phases, assessing the impact of each step before proceeding. A PDF document outlining new reporting requirements confirms this phased approach and states the FCA is collaborating with trade bodies to develop clear guidance for firms.

Key Takeaways

• The FCA’s attempt to encourage single-sided trade reporting is facing resistance from both buy-side and sell-side firms.
• The FCA is actively working to simplify transaction reporting and reduce the burden on firms.
• The implementation of new reporting requirements is being rolled out in phases, with industry guidance forthcoming.
• Transaction reporting remains a critical component of the FCA’s market abuse detection and prevention efforts.