ESMA

European Union – October 27, 2026 -- The EU will switch to T+1 settlement on 11 October 2027, and the European Securities and Markets Authority (ESMA) says the regulatory framework is now complete. ESMA is calling on market participants to finalise technical preparations, assess readiness across their entire ecosystems and start testing across the trading and settlement chain as soon as possible.

First compliance deadline for allocations and confirmations falls on 7 December 2026

Investment firms and their clients must comply with the new allocation and confirmation requirements from 7 December 2026. From that date, the amended RTS on Settlement Discipline makes two things mandatory:

- electronic, standardised communication channels and international messaging standards;
- machine-readable communication methods, except during temporary technical disruptions.

European Union – October 27, 2026 -- National authorities across the European Economic Area (EEA) imposed more than 950 administrative sanctions and measures in 2025, with administrative fines totaling almost €82 million, according to the third Sanctions Report from the European Securities and Markets Authority (ESMA).

The number of sanctions and measures was stable compared with the past two years. The report also records an increased use of settlements.

Market abuse and MiFID breaches dominate enforcement activity

As in previous years, enforcement focused mainly on breaches of the Market Abuse Regulation and the Markets in Financial Instruments Directive and Regulation.

Germany, France and Spain account for two thirds of fine value

Enforcement remained concentrated in a small number of jurisdictions. Germany, France and Spain together accounted for two thirds of the total value of administrative fines across the EEA.

European Union – October 27, 2026 -- The number of retail clients receiving cross-border investment services in the EU/EEA rose 47% in 2025 from 2024 to about 15.5 million, according to the European Securities and Markets Authority (ESMA).

That is almost twice the 2023 level. ESMA compiled the annual analysis with national competent authorities (NCAs), using data from investment firms across 30 jurisdictions.

Firm numbers rise 2% while client numbers surge

A total of 379 financial firms provided cross-border services to retail clients. That is 2% more than in 2024, so the client increase far outpaced firm growth.

Complaints stayed stable, down 0.2% from 2024.

Cyprus hosts 20% of passporting firms

Cyprus remained the main base for firms providing cross-border investment services in the EU/EEA, with 20% of passporting firms. Luxembourg followed with 14% and Germany with 12%.

Europe – October 27, 2026 -- The European Securities and Markets Authority (ESMA) has named geopolitical risks and uncertainties, and restructuring provisions and debt restructuring, as enforcement focus areas for listed issuers' 2026 annual financial reports under its European Common Enforcement Priorities (ECEP).

ESMA sets three reporting areas for 2026 annual reports

The ECEP cover IFRS financial statements, sustainability statements under the European Sustainability Reporting Standards (ESRS) and European Single Electronic Format (ESEF) digital reporting.

For IFRS financial statements, the two priorities are geopolitical risks and uncertainties, and restructuring provisions and debt restructuring.

EU – October 27, 2026 -- The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA) has published its Annual Work Programme for 2027. It lists digital operational resilience, technological innovation, sustainable finance, securitisation and cross-sectoral risk monitoring as the five key priorities for the EU financial sector.

ESAs continue DORA oversight of critical ICT third-party providers

Under the Digital Operational Resilience Act (DORA), the three authorities will continue oversight of critical ICT third-party service providers. They will also work to strengthen the financial sector's preparedness against cyber threats. Financial institutions that depend on external technology vendors remain within the supervisory scope.

European Union – October 27, 2026 -- The European Securities and Markets Authority (ESMA) has updated its transparency manual with new guidance on identifying over-the-counter (OTC) derivatives subject to transparency requirements and on applying the tick-size regime.

ESMA specifies how OTC derivatives reference data must be supplied

The update clarifies how identifying reference data for OTC derivatives should be provided for transparency purposes. ESMA aims to make the data reported to, and published through, the consolidated tape more consistent.

The guidance on OTC identifying reference data remains a draft until the related technical standards enter into force: RTS 2 and the RTS on CTP input/output data.

European Union – October 27, 2026 -- The European Securities and Markets Authority (ESMA) has finalised its revised Market Abuse Regulation (MAR) guidelines on delaying the disclosure of inside information, adding five legitimate interests that issuers can cite to justify a delay.

Under MAR, issuers must disclose inside information concerning them as soon as possible, so that investors are informed and insider dealing is prevented. Issuers may delay disclosure in specific circumstances to avoid prejudicing their legitimate interests. The guidelines give issuers a non-exhaustive list of such interests. The update completes the revised regulatory framework.

Five new legitimate interests follow public consultation

After a public consultation, ESMA added five situations in which a delay may be justified:

EU – October 27, 2026 -- The European Securities and Markets Authority (ESMA) has defined the conditions that providers and users of post-trade risk reduction (PTRR) services must meet for certain OTC derivative transactions to be exempt from the clearing obligation under EMIR 3.

ESMA's final report sets requirements for PTRR providers and the exemption

The final report specifies the elements and requirements of PTRR services. It covers the information provided to participants, how exercises are carried out, the controls providers must have in place, record-keeping, and how use of the exemption will be monitored.

ESMA says the rules are meant to facilitate use of PTRR services. They also aim to prevent the exemption from being used to circumvent the clearing obligation, keeping its use within the conditions laid down in EMIR 3.

European Union – October 27, 2026 -- The European Securities and Markets Authority (ESMA) has withdrawn or amended several Questions and Answers (Q&As) covering market structure under MiFID II, the Market Abuse Regulation (MAR) and the Short Selling Regulation (SSR), removing guidance it considers outdated, duplicative or no longer relevant.

ESMA targets Q&As overtaken by legislative amendments and established practice

The review is part of ESMA's Simplification and Burden Reduction (SBR) initiative. It focused on Q&As made redundant by legislative amendments already reflected in market practice, and on those covered by other ESMA guidance.