FCA Removes FX Derivatives from Reporting Requirements

The UK’s Financial Conduct Authority (FCA) has announced it is removing FX derivatives from its current reporting requirements, reducing cost for over 400 firms.

The UK regulator says the new rules are designed to ensure it 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, it adds, noting the changes will save firms more than £100 million a year.

The changes will take effect on 3 April 2028, giving, the FCA says, firms adequate time to prepare, test and implement updated reporting systems. It adds, however, “a flexible supervisory approach will allow firms that are ready to make certain changes sooner”.

“Transaction reports are the backbone of our market oversight work – they help us catch financial crime, monitor market stability and supervise firms effectively,” observes Therese Chambers, executive director of market enforcement and oversight at the FCA. “By taking a smarter, streamlined approach to reporting, we’re giving firms meaningful cost relief while ensuring we continue to receive the accurate, high-quality data that keeps UK markets clean and competitive.”

The changes were welcomed by Global FX Division head James Kemp, in a post, he states, “The Global FX Division welcomes this UK FCA announcement to remove unnecessary FX derivatives reporting from the UK regime. We continue to seek effective and efficient global regulation that maintains oversight and at the same time allows markets to flourish, and this streamlining by the FCA is an example of how consultation can help achieve this.”