Reducing Burden
On Tuesday, ESMA held its first Data Day with Chair Verena Ross setting out an ambitious vision for reporting simplification. Ross was direct about the problem: the current model, where each regulatory need generates a new data request, has created a fragmented, siloed reporting landscape. The solution requires rationalising data flows so multiple supervisory needs are met through unified reporting, supported by greater data-sharing between authorities and “a new way of legislating on reporting requirements” that avoids built-in duplications. Of course, given the EU’s federated structure, this isn’t simple!
She emphasised that simplification does not mean deregulation: “It means making rules clearer, reducing unnecessary reporting fields and flows, making processes more efficient and obligations more proportionate.” ESMA has concrete initiatives underway, including a Call for Evidence on simplifying financial transaction reporting and a Discussion Paper on integrated fund data collection. Ross signalled that ongoing industry dialogue is essential, pointing to the T+1 governance model as a template for structured public-private engagement.
On technology, she struck a balanced note—AI offers opportunities but “is not a panacea” and requires careful implementation. A clear signal that Europe’s securities regulator sees smarter data architecture as foundational to simplification.
Later in the day there were calls from senior figures for significant ambition – including the centralisation of all reporting with data sharing back to National Competent Authorities and the centralisation of analytics, also on a shared basis. Moving to a single “Data Act” to focus data collection requirements from a broad range of policy areas and across a range of financial services was another part of the “Christmas List” that is under discussion, together with calls to refocus on data sovereignty.
Although much of the focus was on OTC derivative, commodity and other financial instrument transactional reporting, and the many and varied ways in which this process could be re-imagined and simplified, we were encouraged by the clear interest in obtaining better insights, better market outcomes and more competitive analysis through intelligent use of digital reporting.
Read Chair Verena Ross’ speech here.
