The UK Financial Conduct Authority (FCA) today outlined new rules that are set to make transaction reporting requirements smarter, simpler and more proportionate.

The new rules are designed to ensure the FCA continues to receive accurate, high-quality data while eliminating duplicative or low-value reporting. By removing unnecessary reporting the changes will reduce regulatory burden and support growth and competitiveness. The changes will save firms more than £100 million a year.

The FCA proposed to remove FX derivatives from the scope of the transaction reporting regime. The regulator has seen persistent data quality challenges with transaction reports for FX derivatives and, unlike other asset classes, transaction reports are often supplementary to other data collections for FCA’s work.

Today, the FCA said it will proceed with its proposal to remove FX derivatives from the scope of the UK transaction reporting regime. The regulator maintains that UK EMIR data is a more appropriate and effective source for monitoring these markets.

This change is also consistent with FCA’s long-term approach to harmonising transaction and post-trade reporting requirements.

The Authority acknowledges this will create a data gap for UK branches of third country firms. It will explore how to address this gap as part of the work to repeal and replace reporting requirements on OTC derivatives in Title II of UK EMIR.

The FCA will not take supervisory action against firms that do not submit transaction reports for FX derivatives during the implementation period (from 3 August 2026 until the new rules come into force on and including 3 April 2028), provided these firms submit UK EMIR data for the same transactions. These firms may therefore be able to realise significant cost savings ahead of the implementation date.

Firms which do not submit UK EMIR data, such as UK branches of third country firms, must continue to meet applicable requirements during the implementation period.

This change applies to options, futures, swaps, forward rate agreements and any other derivative contracts relating to currencies which may be settled physically or in cash. It does not apply to derivative contracts relating to cryptoassets.