The financial crisis triggered the adoption of more than 50 new pieces of EU legislation (EC, Nov 18)  to restore financial stability and market confidence in European Capital Markets.

One aspect of these regulations is for firms to perform transaction reporting to deliver data regarding executions in the market to the regulators. This enables regulators to perform oversight and ensure markets are operating safely and efficiently.

Transaction reporting requires investment firms to transform and enrich data from front office trading systems. Firms would then manage the submission of this data to an Approved Reporting Mechanism (ARM) for MiFIR who are approved by National Competent Authorities (NCAs) to forward the data to them. For EMIR data is reported directly to a Trade Repository. ESMA and Central Banks then contact Trade Repositories to perform regulatory oversight.

The 2 regimes with the most complex and wide-ranging transaction reporting requirements are MiFIR (2018) and EMIR (2014).