EBA, EIOPA and ESMA propose amendments to bilateral margin requirements 03 August 2026 Joint Committee Trading The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) today published a final report on draft Regulatory Technical Standards (RTS), proposing to simplify the bilateral margin requirements of the European Commission’s Delegated Regulation (EU) 2016/2251. The proposed amendments aim to simplify the bilateral margin framework for counterparties that are subject to initia...
The ESAs have issued a Final Report and draft RTS proposing targeted amendments to Delegated Regulation (EU) 2016/2251 so that counterparties below the EUR 8 billion initial margin threshold under EMIR are fully exempt from exchanging initial margin, both on new and existing uncleared OTC derivatives. This materially simplifies bilateral margining for smaller in-scope counterparties, reduces operational and custodial burdens, and aligns the EU regime with similar reforms already implemented in other jurisdictions (e.g. UK EMIR). Compliance teams must prepare now for the transition from a “legacy-only” margining obligation to a complete exemption once the EUR 8 billion AANA threshold is no longer met.
What Changed
- - Counterparties whose average aggregate notional amount (AANA) of non-centrally cleared OTC derivatives falls below the EUR 8 billion threshold will no longer be required to exchange initial margin...
- The current framework, under which below-threshold counterparties are exempt from initial margin for new trades but must continue to exchange initial margin for pre-existing “legacy” contracts, will...
- Article 28(1) of Delegated Regulation (EU) 2016/2251 will be amended to explicitly extend the exemption from initial margin requirements to outstanding contracts where one of the two counterparties...
- The RTS introduce a clearer operational framework for entry into and exit from the initial margin regime based on the annual AANA calculation for March–May, including scenarios where one or both...
- Once a counterparty falls below the EUR 8 billion threshold under the revised rules, firms will be permitted to terminate related initial margin processes, including ceasing ongoing calculation,...
Suggested Considerations
- Map all EMIR in-scope entities within the group and identify those whose AANA of non-centrally cleared OTC derivatives is close to or below the EUR 8 billion threshold, to assess which relationships may benefit from the expanded exemption.
- Review current collateral and margin frameworks to identify legacy contracts where initial margin is still being exchanged solely because the regime requires continuation despite the counterparty having fallen below the EUR 8 billion threshold.
- Prepare an internal policy update so that, once the RTS enter into force, initial margin requirements are switched off for counterparties below the EUR 8 billion threshold on both new and existing uncleared OTC derivatives, subject to group risk appetite.
- Update EMIR margin procedures and AANA calculation processes to ensure accurate annual determination of whether each counterparty is above or below the EUR 8 billion threshold, including documentation of the March–May calculation methodology.
- Review and amend collateral agreements, credit support annexes (CSAs) and associated legal documentation to incorporate the revised treatment for below-threshold counterparties, including terms for stopping margin exchange and potentially releasing segregated collateral.
Key Dates
- ESAs publish the Final Report and draft RTS proposing amendments to Delegated Regulation (EU) 2016/2251 to simplify bilateral margin requirements for counterparties below the EUR 8 billion initial margin threshold
- The European Commission reviews and, if satisfied, endorses the draft RTS amending the EMIR bilateral margin Delegated Regulation; exact date to be set by the Commission’s internal process
- Following Commission endorsement, the RTS are subject to scrutiny by the European Parliament and the Council under the standard RTS procedure before publication in the Official Journal
- The amended RTS enter into force on the date specified in the Official Journal (typically 20 days after publication), from which firms can legally apply the new exemption regime
- By the date three years after entry into force, the ESAs must complete a review of the application and impact of the exemption from initial margin requirements in Article 28(1), potentially informing further changes
Compliance Impact
The amendments reduce the risk of technical non-compliance for below-threshold counterparties by simplifying obligations, but firms that fail to correctly apply the new threshold-based exemption (e.g. continuing or ceasing margin exchanges incorrectly) may face supervisory findings, remediation demands and potential sanctions under EMIR. Non-compliance could also create contractual disputes and counterparty risk misalignment if margin treatment is inconsistent across jurisdictions or relationships.
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BankBroker DealerAsset Manager EBA, EIOPA and ESMA call for enhanced governance and consistent supervision to mitigate ICT risks from frontier AI models in the EU financial sector 31 July 2026 Digital Finance and Innovation Joint Committee The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) today published a statement calling for a cross-sectoral, risk-based and consistent supervisory approach to mitigate the ICT risks stemming from frontier AI models. The statement takes into account existing regulatory ...
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ESMA publishes latest edition of its newsletter 31 July 2026 ESMA newsletter The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published today the latest edition of its Spotlight on Markets newsletter, covering key activities and publications from June and July 2026. This edition opens with the statement on the end of the MiCA transitional period, calling on unauthorised crypto-asset service providers to wind down their activities i...
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ESMA authorises EuroCTP as the Consolidated Tape Provider for shares and exchange-traded funds 27 July 2026 Market data Press Releases Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has authorised EuroCTP B.V. (EuroCTP) to operate as the Consolidated Tape Provider (CTP) for shares and exchange-traded funds (ETFs). Natasha Cazenave, ESMA’s Executive Director, said: “This authorisation marks a key step in the implementation of ...
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ESMA publishes report on cross-border investment services supervision 20 July 2026 Supervisory convergence The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today published its follow-up report to the Peer Review on the supervision of cross-border activities of investment firms. The report assesses the progress made by national competent authorities (NCAs) in implementing recommendations issued in 2022 and covers the Netherlands, German...
ESMA’s report does **not introduce new binding rules**, but it does confirm that NCAs are being pushed to supervise cross-border investment services more intensively and in a more risk-based way. For compliance teams, this matters because firms with cross-border passports should expect tougher scrutiny of their business plans, stronger information requests, more targeted inspections, and closer coordination between home and host supervisors.
What Changed
- - ESMA reports that NCAs have strengthened authorisation assessments by placing greater emphasis on firms’ cross-border business plans and intentions before granting or maintaining permissions.
- NCAs are increasingly using data-driven and risk-based supervision to monitor cross-border activity and calibrate supervisory attention to the scale, nature, and complexity of the activity.
- NCAs have expanded cooperation and enforcement, including more targeted supervisory actions and reporting of enforcement cases where relevant.
- ESMA expects NCAs with significant outbound cross-border activity to ensure that their supervisory and enforcement approaches are proportionate to the level of risk and business volume.
- The report reinforces that cross-border activity should be treated as a distinct supervisory risk area, not merely as an incidental extension of domestic supervision.
Suggested Considerations
- Review cross-border business plans for all passported investment services and ensure they are supported by clear governance, staffing, systems, and client-service arrangements.
- Map all outbound cross-border activities by jurisdiction, client type, product type, and distribution channel so that compliance can identify where supervisory risk is highest.
- Strengthen controls over retail cross-border activity, including marketing, suitability/appropriateness, complaints handling, and local conduct requirements in each host market.
- Prepare to provide supervisors with more granular evidence of how cross-border risks are identified, monitored, escalated, and mitigated.
- Ensure internal reporting can distinguish cross-border revenue, complaints, incidents, and enforcement exposure from domestic business lines.
Key Dates
- ESMA’s original peer review identified shortcomings in the supervision of cross-border activities and issued recommendations to strengthen authorisation, supervision, cooperation, and enforcement
- ESMA’s 2026 work programme says the follow-up on the peer review of cross-border provision activities of investment firms was expected to be launched around this time
- ESMA published the follow-up report on the supervision of cross-border activities of investment firms
- ESMA indicated in the earlier peer review context that it expected to carry out a follow-up assessment in two years to review improvements, which aligns with a later-stage review cycle
Compliance Impact
The compliance impact is medium to high because the report raises supervisory expectations without creating a new standalone rulebook, but it clearly signals more intense scrutiny of firms active across borders. Non-compliance can lead to inspections, enforcement action, remedial directives, and reputational harm, especially for firms whose cross-border footprint is large or retail-facing.
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Broker DealerAsset ManagerWealth Manager ESMA calls on firms to finalise preparations ahead of T+1 settlement deadlines 20 July 2026 Post Trading The European Securities and Markets Authority (ESMA), the EU regulator and supervisor, has published a statement highlighting key deadlines and action points to be ready for the transition to a T+1 settlement cycle in EU financial markets. With the move scheduled for 11 October 2027, ESMA underlines that 2026 is a critical year for market participants to finalise their preparations. The st...
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New Q&As available 10 July 2026 Digital Finance and Innovation Sustainable finance Trading The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, has published the following question and answer: EU ESG Ratings Regulation (ESGRR) Consulting activities to investors or undertakings (2889) Application of two working day notification period (2719) Scope of two working day notification period (2890) Access to dataset for factual error review (2891) Notification...
What Changed
- - ESMA added a Q&A clarifying consulting activities to investors or undertakings under the EU ESG Ratings Regulation (ESGRR), which is relevant where a ratings provider’s advisory services may...
- ESMA added Q&As on the application and scope of the two working day notification period under ESGRR, indicating that firms must apply the notification clock consistently and in line with ESMA’s...
- ESMA clarified access to the dataset for factual error review under ESGRR, which affects how rated entities or issuers can review underlying data used in ESG ratings processes.
- ESMA added a Q&A on notifications without a designated contact under ESGRR, which is relevant for governance and outreach workflows when a notification lacks an identified recipient.
- ESMA clarified the obligation to consider issuer feedback under ESGRR, reinforcing that issuer comments cannot be ignored and must be handled through a documented review process.
Suggested Considerations
- Review ESG ratings policies to ensure consulting, notification, issuer feedback, and factual error review procedures align with ESMA’s latest ESGRR Q&As.
- Update internal case-handling workflows so notifications are screened for the designated contact issue and the two-working-day notification period is calculated consistently.
- Document how your firm distinguishes internal-use ESG ratings or in-house financial services from externally provided ESG ratings activity.
- Reassess whether any second-party opinion business can rely on the ESGRR exemption and record the legal basis for that conclusion.
- Re-map MiCA permissions for custody, administration, transfer, and lending services to confirm the firm is not performing activities outside its authorisation scope.
Key Dates
- ESMA publishes the new Q&As on ESGRR, MiCA, and MiFIR secondary market topics
Compliance Impact
Non-compliance risk is high because these Q&As affect how firms interpret regulatory scope, notification timing, and operational controls across sustainability, crypto, and market structure regimes. Firms that ignore the guidance may face supervisory challenge, remediation costs, and potential findings that their current procedures, permissions, or disclosures are misaligned with ESMA’s expectations.
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All FirmsAsset ManagerBroker Dealer ESMA launches data collection under the first phase of ESAP 10 July 2026 Market data The European Securities and Markets Authority (ESMA), the EU regulator and supervisor, has launched the collection of information from Officially Appointed Mechanisms (OAMs) and National Competent Authorities (NCAs) - “collection bodies” - for the first phase of implementation of the European Single Access Point (ESAP) . From today, OAMs and NCAs will start providing to ESAP the information and the metadata c...
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ESMA publishes first market capitalisation data for EU Member States 10 July 2026 Market data The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published today the annual market capitalisation and market capitalisation ratios of EU Member States for the reference years 2024 and 2025. This publication marks the first implementation of ESMA’s mandate under the FASTER Directive, under which ESMA developed technical standards on the cal...
ESMA’s 10 July 2026 publication is the first operational use of the FASTER Directive framework requiring annual disclosure of each Member State’s market capitalisation and market capitalisation ratio. For compliance teams, the key issue is not the data release itself but the downstream impact: Member States above the **1.5% threshold for four consecutive years** may fall within special withholding tax relief rules, affecting tax-processing, documentation, and eligibility assessments across the market.
What Changed
- - ESMA has started publishing annual market capitalisation figures and market capitalisation ratios for each EU Member State under its FASTER Directive mandate.
- The published figures are based on a harmonised methodology developed by ESMA in technical standards, using transaction data reported under MiFIR.
- Market capitalisation is calculated from shares admitted to trading on a regulated market or multilateral trading facility, with aggregation at the level of the issuer’s legal address in the relevant...
- The market capitalisation ratio is calculated as the Member State’s market capitalisation divided by the total market capitalisation of all Member States on the same date, expressed as a percentage.
- Member States whose market size exceeds 1.5% of total EU market capitalisation for four consecutive years are subject to specific withholding tax relief-related requirements.
Suggested Considerations
- Compliance teams should map whether any serviced Member State may approach or exceed the 1.5% threshold over a rolling four-year period and flag jurisdictions that could trigger special withholding tax relief consequences.
- Tax operations teams should align withholding tax relief workflows with the ESMA-published ratios so that jurisdictional eligibility assessments use the current official figures.
- Data and controls teams should document the calculation source, methodology, and reconciliation process for any internal use of ESMA market capitalisation data.
- Investment firms and intermediaries should review client-facing tax-relief processes to ensure they can respond to changes in Member State status under FASTER.
- Market-data and regulatory-reporting teams should prepare for annual updates by building a recurring review process around each ESMA publication cycle.
Key Dates
- The FASTER Directive was published in the Official Journal of the EU, establishing the legal basis for ESMA’s market capitalisation mandate
- ESMA published a consultation paper on the draft RTS methodology for calculating market capitalisation and the market capitalisation ratio
- The consultation period for ESMA’s draft RTS methodology closed
- ESMA was expected to finalise the RTS and submit them to the European Commission
- The European Commission issued a final document referring to the FASTER framework and its threshold mechanics
Compliance Impact
The immediate regulatory impact is medium to high because the publication does not itself impose new firm-level filing duties, but it informs a threshold-based regime that can materially affect withholding tax relief eligibility and operational processing. Non-compliance risk rises where firms fail to update jurisdictional tax workflows, leading to incorrect relief treatment, delays, or disputes with counterparties and tax authorities.
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All FirmsBankBroker Dealer Financial firms keep EU carbon markets moving 09 July 2026 Trading The European Securities and Markets Authority (ESMA), the EU financial market regulator and supervisor, has published its t hird annual market report on EU carbon markets . The report shows that financial intermediaries are central to the functioning of the EU carbon market. They provide liquidity, act as counterparties to non-financial firms, and help compliance entities access allowances and manage price risk. Investment fir...
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ESMA launches Common Supervisory Action on CASPs’ digital operational resilience for custody 08 July 2026 Digital Finance and Innovation The European Securities and Markets Authority (ESMA), the EU regulator and supervisor, is launching a Common Supervisory Action (CSA) focusing on the digital operational resilience of Crypto-Asset Service Providers (CASPs), with a specific emphasis on custody services. The CSA will assess the maturity of CASPs’ digital operational resilience frameworks in re...
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ESMA publishes technical standards on CCP admission criteria elements 08 July 2026 CCP Guidelines and Technical standards The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its Final Report on the Regulatory Technical Standards (RTS) concerning the central counterparties’ (CCPs) admission criteria elements , following the review of the European Market Infrastructure Regulation (EMIR 3). EMIR 3 introduces amendments to the p...
ESMA’s Final Report on the RTS for CCP admission criteria elements clarifies the factors CCPs must assess when determining who can become a clearing member, with specific attention to **non-financial counterparties** and **sponsored membership**. For compliance teams, the practical impact is that CCPs will need to evidence that their admission criteria are risk-based, proportionate, transparent, and aligned with EMIR 3, while clearing members—especially NFCs—should expect more structured scrutiny of financial resources, operational capability, and membership model fit.
What Changed
- - CCPs must base admission criteria on a comprehensive risk assessment of the risks posed by clearing members and ensure the criteria reflect those risks.
- CCPs must consider whether clearing members have sufficient financial resources to meet obligations arising from participation in the CCP.
- CCPs must assess whether clearing members have access to reliable credit, liquidity, and foreign exchange facilities commensurate with the scale and nature of their clearing activity.
- CCPs must examine the clearing member’s operational capacity to meet CCP obligations, including readiness to support clearing operations and margin obligations.
- CCPs must take account of the client clearing activity of a clearing member, including the relative importance of that activity and the member’s ability to meet margin requirements if clients default.
Suggested Considerations
- CCPs should review their current admission criteria to ensure they are explicitly tied to a documented assessment of risks posed by each clearing member type.
- CCPs should update membership rulebooks and onboarding procedures to reflect the RTS requirement to consider financial resources, operational capacity, and liquidity support arrangements.
- CCPs should build or refine documented methodologies for assessing NFC clearing members’ ability to meet margin and default fund obligations.
- CCPs should ensure sponsored membership frameworks clearly define how the sponsor’s support, the sponsored member’s profile, and relevant risk controls are assessed for eligibility purposes.
- CCPs should prepare to publish clear admission criteria, application steps, timelines, required documentation, and explanations for any category-specific requirements.
Key Dates
- ESMA conducted a public consultation on the draft RTS
- ESMA held a public hearing on the draft RTS
- The consultation period referenced in ESMA’s prior consultation paper closed
- ESMA published the Final Report on the RTS concerning CCP admission criteria elements
08 July 2026); - The RTS will be submitted to the European Commission for endorsement
Compliance Impact
The compliance impact is moderate to high because the RTS will shape how CCPs admit or exclude clearing members and how those decisions must be justified, documented, and disclosed. Failure to align admission frameworks with the final RTS could expose CCPs to supervisory challenge, remediation requirements, and operational delays in onboarding members or updating access terms.
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BankBroker DealerAsset Manager The ESAs support ESRB warning on systemic cyber risks from frontier AI models 07 July 2026 Digital Finance and Innovation Joint Committee Press Releases The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) welcome and support today’s warning from European Systemic Risk Board (ESRB) on the systemic cyber risks posed by frontier AI models. Recent advances have significantly enhanced the ability of frontier AI models to identify and exploit high-severity vulnerabilities in IT sy...
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ESMA publishes preliminary findings on the Active Account Requirement and the first Annual Report of the Joint Monitoring Mechanism 06 July 2026 CCP The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published the Interim Report of the Effectiveness of the Active Account Requirement and the First Annual Report of the Joint Monitoring Mechanism . Preliminary findings on the Active Account Requirement Based on available data, ana...
ESMA’s interim report on the EMIR 3 Active Account Requirement (AAR) and the first Annual Report of the Joint Monitoring Mechanism (JMM) confirm that the AAR is operational, materially impacting EU clearing behaviour and beginning to shift activity from Tier 2 (third‑country) CCPs to EU CCPs. For compliance teams, this marks a move from regime design to supervisory assessment: firms subject to AAR must now assume their notifications, clearing patterns, and reporting will be benchmarked against ESMA’s evolving effectiveness methodology and cross‑sectoral monitoring of EU clearing risks.
What Changed
- - ESMA has published an Interim Report on the effectiveness of the Active Account Requirement, covering implementation and market impact during 2025 and early 2026, and explicitly framing this as the...
- ESMA confirms that roughly 500 entities have formally notified ESMA and national competent authorities that they are subject to the AAR, indicating that competent authorities now have a defined...
- Notified entities represent more than 90% of notional outstanding held by EU entities in relevant AAR‑scope derivatives, signalling supervisory focus on a concentrated set of high‑exposure...
- ESMA identifies early signs of increased clearing activity at EU CCPs, particularly among smaller entities, including some full relocation of positions from Tier 2 CCPs to EU CCPs for AAR‑relevant...
- ESMA notes a gradual but limited shift in market shares from systemically important Tier 2 CCPs to EU CCPs in certain AAR‑related products, indicating that supervisors will monitor market‑share...
Suggested Considerations
- Confirm whether your entity (and any funds or branches) is subject to the Active Account Requirement by assessing EMIR clearing obligation status and relevant notional clearing volumes against EMIR 3 thresholds for AAR‑scope derivatives.
- Implement and document annual stress‑testing of the active account arrangements, including at least one test per year, to evidence that positions and new trades can be shifted from Tier 2 CCPs to EU CCPs under stress scenarios.
- Map and quantify exposures to Tier 2 CCPs across AAR‑relevant derivatives, and establish an internal monitoring framework to track shifts in clearing volumes between Tier 2 CCPs and EU CCPs in line with AAR objectives.
- Align trade booking, clearing workflows, and client documentation so that the required minimum number of trades per relevant subcategory and contract class can be cleared through the EU active account on an annual average basis, taking into account representativeness requirements where applicable.
- Prepare to submit the first AAR report by 31 July 2026, ensuring that systems and controls can capture and report activity from 25 June 2025 to 30 June 2026 in accordance with ESMA’s reporting templates and instructions.
Key Dates
– EMIR 3 enters into force, establishing the legal basis for the Active Account Requirement and related RTS framework
– First year of operation of the Joint Monitoring Mechanism, covering monitoring of AAR implementation and broader EU clearing landscape developments, as described in the JMM’s first Annual Report
– Active Account Requirement becomes applicable, starting the reference period for AAR compliance and reporting and triggering obligations to maintain an active account at an EU CCP for specified derivatives
– Approximately 500 entities have notified ESMA and national competent authorities that they are subject to the AAR, marking a key supervisory data‑collection milestone
– Regulatory Technical Standards specifying detailed AAR conditions, including operational obligations, stress‑testing, activity and reporting requirements, enter into force, operationalising how the AAR must be met in practice
Compliance Impact
Non‑compliance with the AAR and associated reporting and operational requirements raises significant supervisory and financial stability concerns, with a high risk of regulatory intervention, enforcement, and potential restrictions on clearing arrangements, especially for firms with large exposures to Tier 2 CCPs. Given ESMA’s explicit focus on effectiveness and systemic risk channels, persistent weaknesses in AAR implementation may also affect prudential assessments, stress‑testing outcomes, and broader supervisory views of CCP and clearing‑member risk management.
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ESMA selects Etrading Software (Netherlands) B.V. as Consolidated Tape Provider for OTC derivatives 06 July 2026 Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has selected Etrading Software (Netherlands) B.V. as the Consolidated Tape Provider (CTP) for over-the-counter (OTC) derivatives. This constitutes an important step in improving transparency for OTC derivatives markets under the Markets in Financial Instruments Regulat...
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ESMA launches Common Supervisory Action with NCAs on the risk management function 03 July 2026 Risk monitoring The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is launching a Common Supervisory Action (CSA) on risk management function of UCITS management companies and Alternative Investment Fund Managers (AIFMs) across the European Union. The CSA will be conducted throughout 2026 and 2027, in close collaboration with National Competent...
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ESMA reminds firms of existing rules and obligations under binary option measures amid growing popularity of prediction markets globally 03 July 2026 Investor protection The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has issued a statement reminding firms of their obligation to assess whether newly offered products fall within the scope of existing product intervention measures on binary options. The statement responds to the growing...
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ESMA identifies up to €1 billion in potential annual savings from simplifying EU transaction reporting 02 July 2026 Market data Simplification and Burden Reduction The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its final report on the simplification of transaction reporting, setting out a clear path towards a ‘Report Once’ approach. Verena Ross, ESMA Chair, said: “Transaction reporting is central to market transparency,...
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Moody’s Germany fined EUR 2,145,000 for misreporting to ESMA 02 July 2026 Press Releases Securities Financing Transactions Supervision Trade Repositories The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has fined Moody’s Deutschland GmbH (Moody’s Germany) a total of EUR 2,145,000, for committing four breaches of the Credit Rating Agencies Regulation (CRA Regulation), and issued a public notice. Verena Ross, ESMA’s Chair said: "Moody’s ...
ESMA has fined Moody’s Deutschland GmbH EUR 2,145,000 for four negligent breaches of the EU Credit Rating Agencies Regulation (CRA Regulation), all relating to incomplete, inaccurate and outdated regulatory data reported to ESMA and published on ESMA’s central platforms. This enforcement action underscores that ESMA now treats **data quality in regulatory reporting by credit rating agencies (CRAs)** as a core supervisory priority, with failures in reporting frameworks, policies, procedures and internal controls attracting significant financial penalties and public censure.
What Changed
- - ESMA has clarified, through enforcement, that CRAs must ensure complete, accurate and up‑to‑date data is reported to ESMA across all relevant CRA reporting channels (including the European Rating...
- ESMA has reinforced that errors limited to regulatory reporting data (and not directly affecting published ratings) can still constitute material breaches of the CRA Regulation, demonstrating that...
- ESMA has indicated that group reporting arrangements (where one CRA entity reports on behalf of others in the group) must have clear documentation of responsibilities, validation processes, and...
- ESMA has emphasized that regulatory reporting frameworks must include robust policies, procedures and internal control mechanisms, and that deficiencies in these frameworks constitute distinct...
- ESMA has signalled that negligence, rather than intentional misconduct, is sufficient to trigger significant fines under the CRA Regulation, and that both aggravating and mitigating factors will be...
Suggested Considerations
- Conduct a comprehensive review of all ESMA‑related reporting processes to ensure that data submitted to ESMA (including rating information, historical performance data, rating changes, and other CRA regulatory reports) is complete, accurate, and kept up‑to‑date at all times.
- Map and document all responsibilities for ESMA reporting within the CRA group, ensuring that where one entity reports on behalf of others, the allocation of roles, ownership of data, and validation steps is explicitly defined, approved, and regularly reviewed.
- Perform a gap analysis of existing regulatory reporting policies, procedures, and internal control mechanisms against CRA Regulation requirements and ESMA supervisory expectations, and update documentation to remove ambiguities and outdated provisions.
- Implement or strengthen data validation and reconciliation controls over submissions to the European Rating Platform and ESMA’s central repositories, including automated checks for missing ratings, non‑withdrawn ratings, incorrect rating actions, and inconsistencies in historical performance data.
- Establish a formal governance process for changes to regulatory reporting frameworks, ensuring regular review, independent challenge by compliance or risk functions, and clear escalation routes for identified data quality issues or control failures.
Key Dates
– ESMA has been responsible for the supervision and registration of credit rating agencies in the EU under the CRA Regulation, including enforcement actions for breaches
– Potential appeal window for Moody’s Germany to bring the case before the Board of Appeal of the European Supervisory Authorities; any appeal does not have automatic suspensive effect, though suspension can be granted by the Board of Appeal on request
– ESMA Board of Supervisors adopts supervisory measures and imposes fines on Moody’s Deutschland GmbH for four negligent breaches of the CRA Regulation, and publishes a public notice and press release
Compliance Impact
The compliance impact is high: ESMA has imposed a multi‑million euro fine on Moody’s Germany for negligent data reporting failures that did not affect the underlying ratings, indicating that poor regulatory reporting alone can trigger significant financial and reputational consequences, and that persistent or systemic weaknesses in CRA reporting frameworks could ultimately risk sanctions up to withdrawal of registration.
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ESMA consults on simplifying EU Taxonomy disclosure framework 01 July 2026 Sustainable finance The European Securities and Markets Authority (ESMA), the EU financial markets regulator and supervisor, has launched a consultation on technical advice to the European Commission (EC) on selected KPIs under the Taxonomy Disclosures Delegated Act, focusing on simplification and reduction of reporting burdens for market participants. The consultation builds on recent simplification efforts under the ...
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ESMA recognises the Clearing Corporation of India Limited as a Tier 1 third-country CCP 01 July 2026 CCP The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has recognised The Clearing Corporation of India Limited (CCIL) as a Tier 1 third-country central counterparty (CCP) under the European Market Infrastructure Regulation (EMIR). The recognition allows CCIL to provide clearing services to EU clearing members and trading venues, including banks, inves...
ESMA has recognised The Clearing Corporation of India Limited (CCIL) as a **Tier 1 third‑country CCP** under EMIR, with the recognition effective from **30 June 2026**, allowing CCIL to provide clearing services to EU clearing members and trading venues. This restores and regularises EU firms’ ability to clear eligible Indian markets through CCIL under EMIR Article 25, subject to equivalence, cooperation, and oversight conditions tied to the Reserve Bank of India (RBI) and the Indian CCP regime.
What Changed
- - CCIL is formally recognised as a Tier 1 third‑country central counterparty (TC‑CCP) under Regulation (EU) No 648/2012 (EMIR), allowing it to offer clearing services to EU clearing members and EU...
- The recognition is contingent on an equivalence decision adopted by the European Commission for the Indian regulatory framework applicable to CCPs under EMIR Article 25.
- ESMA has assessed and confirmed effective supervision and enforcement by the Reserve Bank of India (RBI) over CCIL as a prerequisite for recognition.
- ESMA and RBI have put in place cooperation arrangements, formalised through a Memorandum of Understanding, to support ongoing supervisory coordination over CCIL’s activities that affect EU...
- CCIL is now included in ESMA’s updated list of recognised third‑country CCPs, clarifying that EU firms may use CCIL’s clearing services while complying with EMIR’s clearing and risk‑management...
Suggested Considerations
- Confirm and document that CCIL now appears on ESMA’s official list of recognised third‑country CCPs and that its status is Tier 1 under EMIR, updating internal CCP eligibility lists and counterparty approval registers accordingly.
- Review and update internal clearing policies, procedures and governance documents to reflect that EU entities may again clear eligible products through CCIL, subject to EMIR and firm‑specific risk appetite.
- Reassess and formally approve CCIL within the firm’s CCP due‑diligence framework, including credit risk, operational risk, legal risk and jurisdictional risk assessments, taking account of the RMU with RBI and the Tier 1 classification.
- Update EMIR compliance mappings to ensure that trades cleared via CCIL are correctly treated for clearing obligation, risk‑management, reporting and collateral requirements, and that no activity is undertaken through non‑recognised CCPs in India.
- Coordinate with front‑office, clearing operations and collateral management teams to re‑open or adjust clearing access to CCIL (e.g. membership arrangements, client clearing channels, account structures, margin and collateral workflows).
Key Dates
- ESMA’s withdrawal of recognition decisions for six Indian CCPs, including CCIL, took effect under EMIR, prohibiting EU clearing members and trading venues from using those CCPs for EU‑regulated clearing activity
- ESMA and the Reserve Bank of India sign a Memorandum of Understanding establishing supervisory cooperation arrangements for Indian CCPs, including CCIL
- ESMA’s decision recognising CCIL as a Tier 1 third‑country CCP under EMIR takes effect, and CCIL is added to ESMA’s updated list of recognised TC‑CCPs
Compliance Impact
Non‑compliance with EMIR’s requirement to use only recognised third‑country CCPs for clearing in scope activities could expose firms to supervisory action, including potential enforcement, fines and restrictions on clearing activities. The recognition of CCIL materially reduces legal and regulatory risk for EU firms clearing Indian markets, but firms must still ensure their governance, risk and operational controls are aligned with EMIR and the Tier 1 TC‑CCP framework.
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BankBroker DealerAsset Manager ESMA appoints Peter Tkáč as the new member of its Management Board 01 July 2026 About ESMA Management Board The European Securities and Markets Authority (ESMA), the European Union’s financial markets regulator and supervisor, has appointed Peter Tkáč, Národná Banka Slovenska (NBS), Slovakia, as the new member of its Management Board . The election took place at the Board of Supervisors meeting on 30 June 2026, in order to replace outgoing member Ante Žigman, Hrvatska agencija za nadzor finan...
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The ECB has launched a **comprehensive clean‑up and re‑classification of all its supervisory guidance** (guides, reports, letters, methodologies) to streamline content, remove outdated expectations and explicitly underline that these documents are **non‑binding**. This matters for compliance teams because it changes the **reference set of applicable ECB expectations**, clarifies the status of “supervisory guidance” versus hard law, and introduces targeted revisions in key areas such as ICAAP management buffers, internal models, CRR III implementation and licensing processes.
What Changed
- - The ECB is conducting a comprehensive review of around 130 supervisory publications (guides, reports, letters, methodologies) to assess their relevance, effectiveness and clarity and to align them...
- Approximately 40 supervisory documents have been classified as outdated, superseded or no longer relevant and have been formally discontinued, with the texts remaining accessible but clearly labelled...
- The ECB has updated its classification of supervisory guidance documents to emphasise explicitly that they are non‑binding, do not create new legal obligations and do not replace binding EU or...
- The Guide to the internal capital adequacy assessment process (ICAAP Guide) will be revised to clarify supervisory expectations on the management buffer, explicitly positioning it as the bank’s own...
- The ECB has removed all content on supervisory expectations for the credit conversion factor (CCF) from the Guide to internal models, in anticipation of forthcoming EBA guidelines on CCF, thereby...
Suggested Considerations
- Review the ECB press release and associated lists of discontinued publications to identify any ECB guides, reports, letters or methodologies currently referenced in your internal policies, risk frameworks or model documentation that are now labelled as discontinued.
- Update internal policy inventories, regulatory mapping and compliance registers to reflect the new classification of ECB supervisory guidance as non‑binding and to distinguish clearly between binding EU/national law and non‑binding ECB expectations.
- For banks using the ICAAP Guide, perform a gap analysis of capital planning and management buffer practices against the forthcoming clarified expectations, ensuring internal documentation clearly differentiates management buffers from Pillar 2 requirements and guidance.
- For institutions using internal models for credit risk, remove any reliance on the ECB’s former CCF expectations by re‑mapping modelling policies and documentation to forthcoming EBA guidelines on credit conversion factors and to CRR/CRD provisions, once those guidelines are finalised.
- For risk and finance functions, review the CVA treatment in internal capital and risk methodologies to verify alignment with CRR III and ensure that internal references to ECB guidance (assessment methodology, materiality assessment) are updated to reflect the removed CVA content.
Key Dates
- ECB announces the comprehensive review of around 130 supervisory guidance publications, confirms discontinuation of about 40 outdated documents, and signals targeted and in‑depth revisions for the remaining guidance set
- Revised **Guide to the internal capital adequacy assessment process** is expected to be published “shortly” after the press release, incorporating clarified treatment of the management buffer and its relationship to Pillar 2 guidance
- Removal of supervisory expectations on **credit conversion factor (CCF)** from the **Guide to internal models** and the removal of **CVA references** from the **Guide on assessment methodology** and the **Guide on materiality assessment** are implemented as part of the ongoing review and alignment with EBA guidance and CRR III
- **Public consultations** will be launched on those guidance documents identified as needing substantial revision, ahead of finalising the updated versions
- Publication of the new **report on good practices in governance and risk culture**, replacing the existing Draft guide on governance and risk culture, following finalisation of the revised EBA Guidelines on internal governance
Compliance Impact
The immediate legal risk is limited because the ECB reiterates that its supervisory guidance is non‑binding and does not create new obligations, but misalignment with updated ECB expectations can materially affect SREP outcomes, Pillar 2 guidance, model approvals and licensing decisions. Failure to update internal frameworks, models and governance practices in line with the revised guidance and EBA/CRR III developments may therefore lead to higher capital guidance, increased supervisory findings, delays in approvals and more intensive supervisory scrutiny.
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ESMA publishes the register of external reviewers under the EuGB Regulation 22 June 2026 Supervision The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published the register of firms authorised to act as external reviewers of European Green Bonds. External reviewers play a key role in ensuring that the use of proceeds of European Green Bonds is allocated in line with the EU Taxonomy requirements. They are also vital in boostin...
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ESMA contributes to global CCP fire drill exercise 19 June 2026 CCP In November 2025, 38 central counterparties (‘CCPs’) from across the world, together with clearing members, conducted a coordinated fire drill exercise simulating the failure of a hypothetical common participant. Known as the CCP Global International Default Simulation (CIDS), the exercise aimed to promote preparedness and coordination across jurisdictions. ESMA participated in the lead authorities’ group together with Bundes...
ESMA has announced its participation as a lead authority in the 2025 CCP Global International Default Simulation (CIDS), a coordinated multi-jurisdictional default-management “fire drill” involving 38 CCPs and their clearing members, simulating the failure of a common participant in November 2025. This is not a new binding rule but it signals heightened supervisory expectations on default management, cross-CCP coordination, porting, and operational resilience, which EU CCPs and clearing members should treat as de facto supervisory standards.
What Changed
- - Supervisory expectations are raised for standardisation and reduction of fragmentation in CCP default-management procedures and communication conventions, with a strong push toward harmonised...
- Lead authorities explicitly promote greater use of portal-based solutions (rather than ad hoc email or bespoke channels) for communication, information sharing, and auction-related workflows between...
- Authorities call for more realistic testing of porting arrangements, including end-to-end operational tests that reflect real-life constraints (documentation, client consent, timing of transfers, and...
- The lead authorities propose considering a voluntary “market stress overlay” module in future CIDS exercises, creating a coherent cross-CCP macro stress scenario to test whether operational capacity...
- ESMA confirms that global CCP fire drills are now a core component of system-wide resilience expectations, effectively embedding regular multi-CCP default simulations into ongoing supervisory...
Suggested Considerations
- CCPs should review and update their default management procedures to align with emerging cross-CCP standards, including harmonised communication conventions, standardised information templates, and coordinated auction timelines.
- Clearing members should conduct a cross-CCP gap analysis of their default-management playbooks to ensure they can support simultaneous auctions and calls from multiple CCPs without creating operational bottlenecks.
- CCPs and clearing members should implement or upgrade portal-based communication and workflow tools for default events, replacing fragmented email- or spreadsheet-based processes where feasible.
- Clearing brokers and client-clearing firms should test and, where necessary, redesign their porting arrangements (including client consent, documentation, booking models, and operational capacity) to ensure they can port positions and collateral under stressed but realistic timelines.
- Risk and operations teams at CCPs and clearing members should incorporate findings from the 2023 and 2025 CIDS exercises into their internal default-management training, drills, and board reporting on operational resilience.
Key Dates
– Week-long 2023 Global CCP fire drill coordinated by ESMA and other authorities, simulating the default of a hypothetical major clearing member across more than 30 CCPs
– Kick-off meeting for the second industry-led multi-CCP default simulation (CIDS 2025) organised by CCP Global in Singapore, setting parameters and expectations for the 2025 exercise
– Start of the 2025 CCP Global International Default Simulation (CIDS) multi-CCP fire drill window (up to 7 November 2025 for some CCPs), simulating the failure of a hypothetical common participant
– Debrief meeting in Singapore for CIDS 2025 participants to discuss operational outcomes, bottlenecks, and potential improvements
– ESMA and the lead authorities publish the 2025 CIDS key findings and recommendations, outlining expectations for further progress in standardisation, porting, portal-based solutions, and potential market stress overlay modules
Compliance Impact
The immediate legal impact is indirect, as the publication itself does not amend EMIR or introduce binding RTS/ITS, but it clearly elevates supervisory expectations on default management, porting, and operational resilience for CCPs and clearing members. Failure to adapt to these expectations may expose firms to supervisory criticism, remediation demands, and heightened scrutiny of their default management, operational resilience, and governance frameworks.
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BankBroker DealerAsset Manager ESMA 2025 Annual Report: focus on stronger supervision, regulatory simplification, and innovation 17 June 2026 About ESMA Board of Supervisors Management Board Press Releases The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published its Annual Report for 2025 , highlighting a year of progress in strengthening EU’s financial markets through enhanced supervision, regulatory simplification and innovation. Set against a backdrop...
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Euribor panel to include KBC Bank 11 June 2026 Benchmarks Press Releases On 27 May 2026, the European Money Markets Institute (EMMI), the administrator of Euribor, announced the inclusion of KBC Bank in the Euribor panel. ESMA and the Belgian Financial Services and Markets Authority (FSMA) welcome the inclusion of KBC Bank in the panel as a positive development that contributes to strengthening the robustness and reliability of this critical benchmark. Verena Ross, ESMA Chair, said: “The ad...
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The GMTF presents its findings on EU gas and gas derivative markets 02 June 2026 Trading The Gas Market Task Force (GMTF), has published today a report on the functioning of EU gas and gas derivatives markets, summarising the analytical work it has conducted in 2025. The report also suggests further work in several areas to ensure that European gas and gas derivatives markets continue performing as expected and to the benefit of European competitiveness and consumers. The GMTF was established...
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ESMA publishes latest edition of its newsletter 01 June 2026 ESMA newsletter The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published today the latest edition of its Spotlight on Markets newsletter , covering ESMA’s key activities and publications from April and May 2026. This edition opens with key takeaways from ESMA’s conference “A New Era for EU Capital Markets” , marking ESMA’s 15th anniversary and focusing on the ambition t...
ESMA’s latest *Spotlight on Markets* newsletter (covering April–May 2026 activity) signals a coordinated push on reporting simplification, CCP resilience, EMIR 3 implementation and enhanced enforcement of corporate and digital reporting standards. For compliance teams, the newsletter is a consolidated forward‑looking risk map: it highlights where ESMA and NCAs will focus supervision and enforcement in the next cycle, especially around fund/transaction reporting, CCP crisis planning, ESEF taxonomy use and internal control functions in the funds sector.
What Changed
- - ESMA is advancing the simplification of EU reporting frameworks for funds and transaction reporting, indicating upcoming changes to reporting templates, data fields and/or reporting channels under...
- ESMA has launched its sixth EU‑wide stress test exercise for Central Counterparties (CCPs), expanding supervisory scrutiny of CCP risk management, default management processes and resilience to...
- ESMA has published guidance on the effective use of resolution tools in CCP crisis planning, clarifying expectations for CCP resolution planning, coordination with resolution authorities and use of...
- ESMA has issued reporting templates and instructions for the Active Account Requirement under EMIR 3, operationalising new obligations for counterparties and CCPs to maintain and report active...
- ESMA has published a call for evidence on the structure of European equity markets, opening a policy workstream that may lead to changes in market structure, transparency, and best execution...
Suggested Considerations
- Map your firm’s current EMIR, MiFIR and fund reporting obligations against ESMA’s stated objective of simplifying EU reporting frameworks and begin scenario‑planning for changes to templates, data models and validation rules.
- For CCPs and clearing members, review participation in the sixth ESMA CCP stress test, ensure timely and accurate data delivery, and assess internal implications of potential stress test findings for risk management frameworks.
- CCPs should compare existing recovery and resolution plans and playbooks against ESMA’s new guidance on effective use of resolution tools, updating governance, triggers, communications and coordination arrangements with resolution authorities.
- Counterparties and CCPs in scope of EMIR 3 should identify products and business lines affected by the Active Account Requirement and begin implementing systems, processes and controls to populate ESMA’s reporting templates and instructions.
- Investment firms active in equity markets should respond to ESMA’s call for evidence on European equity market structure where appropriate, and internally assess potential impacts on best execution, order routing, internalisation and transparency obligations.
Key Dates
– ESMA and NCAs conduct the 2025 Common Supervisory Action on compliance and internal audit functions of fund managers, establishing benchmarks for good and poor practices in the funds sector
– First year of enforcement of European Sustainability Reporting Standards (ESRS) and application of ESMA Guidelines on Enforcement of Sustainability Information for in‑scope issuers’ 2025 reporting
– ESMA and NCAs carry out corporate reporting enforcement across the EEA, including financial, sustainability and digital (ESEF) reporting, feeding into ESMA’s 2025 corporate reporting enforcement report
– ESMA launches the sixth CCP stress test exercise, with follow‑up supervisory actions by ESMA and NCAs expected after results are analysed
– ESMA publishes reporting templates and instructions for the EMIR 3 Active Account Requirement, enabling firms and CCPs to begin design and implementation work ahead of EMIR 3 go‑live
Compliance Impact
The overall impact is medium to high: while the newsletter itself does not create new binding obligations, it consolidates ESMA priorities that will drive supervisory focus and future technical standards, particularly in EMIR 3, CCP oversight, ESEF and sustainability reporting. Failure to anticipate and align with these priorities can lead to enforcement actions, remediation mandates, higher supervisory scrutiny and reputational risk once the related rules and guidance are fully applied.
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Asset ManagerBroker DealerBank ESMA’s annual data report shows increased quality, wider use and digital progress 29 May 2026 Market data The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, published today its annual report on the quality and use of regulatory data . It shows that improvements in data quality and data use reinforce each other in a virtuous cycle, supporting more effective supervision and market monitoring across the EU. This year’s edition reflects an e...
ESMA’s latest annual report on the **quality and use of regulatory data** confirms a material step‑up in supervisory reliance on EMIR, SFTR, MiFIR, AIFMD and MMFR datasets, alongside new inclusion of Prospectus and DORA ICT‑incident reporting. For compliance teams this is a clear signal that data quality is now an enforcement‑relevant topic across a broader perimeter, and that ESMA is actively moving toward **streamlined, “report once” cross‑regime reporting** and an integrated funds reporting framework, which will reshape reporting architecture and controls over the next 1–3 years.
What Changed
- - ESMA confirms measurable data quality improvements across EMIR, SFTR, MiFIR, AIFMD and MMFR regulatory datasets, indicating that regulators now consider these data sufficiently reliable for...
- ESMA highlights extensive and growing supervisory use of regulatory data by ESMA and NCAs for investor protection, financial stability, orderly markets and market integrity, increasing the...
- The scope of the annual data quality and use report is expanded to include Prospectus reporting obligations, bringing prospectus‑related data formally into ESMA’s cross‑regime data quality scrutiny.
- The report scope is also expanded to include ICT‑related incident reporting under the Digital Operational Resilience Act (DORA), signaling that operational resilience incident data will be monitored...
- ESMA has launched a 2025 Call for Evidence on streamlining reporting across EMIR, MiFIR and SFTR, including options to remove duplications and apply a “report once” approach, which will likely lead...
Suggested Considerations
- Map all existing regulatory reporting obligations across EMIR, SFTR, MiFIR, AIFMD, MMFR, Prospectus and DORA ICT‑incident reporting, and document the underlying data sources, systems and ownership for each regime.
- Review and enhance data quality controls for EMIR, SFTR and MiFIR reporting, including validation rules, completeness checks, reconciliations, pairing and matching processes, and governance around Unique Transaction Identifiers and counterparty data.
- Perform a gap analysis of Prospectus reporting and DORA ICT‑incident reporting processes against ESMA’s emerging cross‑regime data quality expectations and ensure they are covered in the firm’s enterprise data governance framework.
- Establish or update a centralised regulatory data governance framework that explicitly covers cross‑regime consistency (for example, trade and position data alignment between EMIR, SFTR and MiFIR) and defines clear accountability at senior management level.
- Engage with internal IT and reporting teams to identify where a future “report once” model could be supported technically, including harmonised reference data, common identifiers and golden‑source transaction and position records.
Key Dates
– ESMA’s Call for Evidence on streamlining reporting across EMIR, MiFIR and SFTR is scheduled, with stakeholders expected to provide input on duplication removal and “report once” options
– ESMA will host a webinar to present the main findings of the annual report on the quality and use of regulatory data
Compliance Impact
Regulatory data reported under EMIR, SFTR, MiFIR, AIFMD, MMFR, Prospectus rules and DORA is increasingly used for day‑to‑day supervision, thematic reviews and enforcement, making poor data quality a direct source of regulatory, reputational and potentially financial sanctions risk. As ESMA and NCAs deploy more automated, risk‑based data quality tools, firms with weak controls or inconsistent cross‑regime reporting will be more visible and more likely to face targeted supervisory action.
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BankBroker DealerAsset Manager New Q&As available 28 May 2026 Digital Finance and Innovation Market Abuse Sustainable finance The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, has published the following question and answer: EU ESG Ratings Regulation (ESGRR) Defined ranking system (2853) Transitional provisions (2854) ESG rating providers established after date of entry into force (2855) Material changes to registration information (2856) Market Abuse Regulation (MAR) Regulation A...
ESMA has released new Q&As clarifying several operational aspects of the EU ESG Ratings Regulation (ESGRR), the Market Abuse Regulation (MAR) delegated audit requirements, and an exemption from MiCA white paper obligations for certain crypto-asset offerings. These Q&As materially affect how ESG rating providers structure their methodologies and registrations, how firms plan and evidence MAR compliance audits, and when MiCA white papers are required, and therefore should immediately be integrated into internal compliance frameworks.
What Changed
- - ESMA clarifies what constitutes a “defined ranking system” under the EU ESG Ratings Regulation (ESGRR), including when rating scales, score bands or league tables will be regarded as a ranking...
- ESMA sets out transitional provisions for existing ESG rating providers active before ESGRR application, detailing conditions and timelines under which they may continue operating while completing...
- ESMA explains how ESG rating providers established after the ESGRR date of entry into force must comply, including the need to obtain authorisation/registration before commencing activity in the EU...
- ESMA defines what qualifies as “material changes to registration information” for ESG rating providers under ESGRR, indicating the types of changes (e.g.
- Under MAR and Commission Delegated Regulation (EU) 2016/957, ESMA clarifies expectations regarding the annually conducted audit of market soundings arrangements, including scope, independence of the...
Suggested Considerations
- Map all existing and planned ESG rating products against ESMA’s clarified concept of a “defined ranking system” and update methodologies, scales, and disclosures to ensure they meet ESGRR and Q&A expectations.
- For ESG rating providers operating before 02 July 2026, develop and execute a documented transitional compliance plan that aligns governance, methodologies, data controls and transparency with ESGRR, ensuring timely notification to ESMA within one month from 02 July 2026.
- For entities intending to launch ESG rating activities after ESGRR entry into force, prepare and submit complete authorisation or registration files to ESMA before commencing rating activity, incorporating the Q&A guidance on initial registration requirements.
- Establish or enhance a formal process to identify, assess and record “material changes to registration information” for ESG rating providers, and implement controls to ensure ESMA is notified within required timelines before or immediately after such changes, as specified in the Q&A.
- Review and update MAR compliance frameworks, with particular focus on market soundings procedures, to incorporate ESMA’s expectations on the scope, independence, and documentation of the annually conducted audit required under Commission Delegated Regulation (EU) 2016/957.
Key Dates
– ESG Ratings Regulation (ESGRR) enters into force, starting the formal legislative timeline and triggering preparatory obligations for future ESG rating providers
– ESGRR applies and the main substantive requirements become effective; from this date entities have one month to notify ESMA of their intention to apply for authorisation or registration as ESG rating providers
Compliance Impact
Non-compliance with ESGRR, MAR and MiCA as interpreted in ESMA’s Q&As may lead to authorisation refusals or withdrawals, administrative fines, product restrictions, and heightened supervisory scrutiny. Given the enforcement nature of ESG ratings supervision and MAR/MiCA regimes, firms face significant conduct, reputational and business model risks if they fail to align promptly with this guidance.
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Asset ManagerBroker DealerCrypto Exchange ESMA consults on revised guidelines to support smoother allocations and confirmations under T+1 26 May 2026 Post Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a consultation on the updated guidelines on standardised procedures and messaging protocols. This review is part of ESMA’s work to support market participants in preparing for the transition to a T+1 settlement cycle. The updates are designed to make post ...
ESMA has launched a consultation on **revised ESMA Guidelines on standardised procedures and messaging protocols for allocations and confirmations**, aligning them with the forthcoming CSDR Settlement Discipline RTS amendments and the EU’s move to **T+1 settlement by 11 October 2027**. The draft guidelines harden expectations around **mandatory electronic, standardised, machine‑readable communication** for post‑trade processes and remove reliance on manual or non‑machine‑readable methods, significantly tightening operational requirements for EU trading, post‑trade and operations functions.
What Changed
- - ESMA proposes revised Guidelines on standardised procedures and messaging protocols for allocations and confirmations under CSDR Settlement Discipline, specifically to support the transition to a...
- The guidelines will mandate the use of electronic, standardised communication channels for post‑trade allocations and confirmations, moving away from mixed paper / manual practice to fully electronic...
- Firms will be required to use international messaging standards (e.g. ISO‑based protocols) for post‑trade communication, to ensure interoperability and faster straight‑through processing across EU...
- The guidelines remove references to non‑electronic and non‑machine‑readable methods, including oral allocations and confirmations, except where there is a temporary technical disruption that prevents...
- The revisions are explicitly aligned with ESMA’s Final Report on Amendments to the CSDR RTS on Settlement Discipline, which introduce same‑day timing for allocations and machine‑readable formats for...
Suggested Considerations
- Map all current allocation and confirmation workflows and identify any use of non‑electronic, non‑standardised or non‑machine‑readable communication (including email attachments, faxes, PDFs, and oral instructions).
- Develop and execute a remediation plan to replace manual or oral allocation and confirmation processes with fully electronic, machine‑readable workflows using recognised international messaging standards.
- Review and update front‑to‑back trade processing systems (OMS, EMS, middle‑office, back‑office, matching engines) to ensure they can generate, receive and process standardised electronic allocation and confirmation messages within same‑day T+1‑compatible timelines.
- Engage with CSDs, custodians, brokers, counterparties and third‑party vendors to confirm their roadmap and readiness for the mandated electronic standards and to align implementation timelines to the 7 December 2026 application date.
- Update contractual documentation with clients and counterparties (including terms of business and service level agreements) to incorporate obligations for electronic, standardised, machine‑readable allocations and confirmations and to remove reliance on manual methods except as contingency.
Key Dates
– Deadline stated by ESMA for stakeholders to submit consultation feedback on the revised guidelines
– ESMA expects to publish its final report, including updated and finalised guidelines on standardised procedures and messaging protocols
– Expected application date of the revised ESMA Guidelines on allocations and confirmations, aligned with the anticipated application of the amended CSDR RTS on Settlement Discipline requirements for allocations and confirmations
– EU transition date to a T+1 settlement cycle, when trades in in‑scope instruments must settle one business day after the trade date and firms must fully operate under the new T+1‑aligned post‑trade framework
Compliance Impact
The change is high impact for operational and conduct compliance: failure to implement mandatory electronic, standardised post‑trade communication and to meet compressed T+1 timelines will directly increase settlement fails, trigger CSDR Settlement Discipline measures and may expose firms to supervisory findings, sanctions and client detriment. Given the hard deadlines and dependency on technology and counterparties, non‑compliance risks crystallising as both regulatory breaches and material operational risk.
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BankInsuranceAsset Manager ESMA publishes shortlist of candidates for position of Chair 20 May 2026 About ESMA Board of Supervisors Press Releases The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published the shortlist of candidates for the position of Chair, which it has sent to the Council of the European Union (Council) and the European Parliament (Parliament). The Council will appoint the Chair following confirmation by the Parliament. The Board of Supe...
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ESMA issues guidance on effective use of resolution tools in CCP crisis planning 13 May 2026 CCP The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published a resolution briefing for Central Counterparties (CCPs). The briefing provides practical guidance to National Resolution Authorities (NRAs) on how to operationalise the write-down and conversion of instruments tool (WDCI). Marking an important step in ESMA’s wider efforts ...
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ESMA identifies areas for further supervisory convergence on compliance and internal audit in the funds sector 11 May 2026 Audit Fund Management The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published the results of its 2025 Common Supervisory Action (CSA) on the compliance and internal audit functions of fund managers , carried out in with the participation of all EU and EEA national supervisors. The EU-wide review found that m...
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ESMA outlines enforcement activities for corporate reporting across the EEA in 2025 07 May 2026 Corporate Finance Electronic reporting Financial reporting Sustainable finance The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published its Report on 2025 Corporate reporting enforcement and regulatory activities . The report provides an overview of how national enforcers and ESMA supervised corporate reporting across the Europea...
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ESMA consults on a new simplified approach to updating MMF stress test parameters 05 May 2026 Fund Management Simplification and Burden Reduction The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today launched a consultation on a new approach to updating the parameters for stress test scenarios under the Money Market Funds framework. ESMA proposes replacing the current annual amendments to Section 5 of the Guidelines with an annual...
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ESMA promotes proportionate supervision of MiFID II sustainability requirements 06 May 2026 Investor protection The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has issued a statement presenting the results of its Common Supervisory Action (CSA) on how sustainability is integrated into firms’ suitability assessment as well as into processes and procedures for product governance. The statement highlights key themes emerging from the sup...
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ESMA advances the simplification of EU reporting frameworks for funds and transactions 04 May 2026 Fund Management Market data Press Releases Securities Financing Transactions Simplification and Burden Reduction The European Securities and Markets Authority (ESMA), the EU financial markets regulator and supervisor, has launched a harmonised approach to funds reporting and has set a clear path towards streamlined, more efficient transaction reporting across European markets. The two reports pu...
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ESMA launches its sixth stress test exercise for Central Counterparties 30 April 2026 CCP Press Releases The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today launched its sixth stress test exercise for Central Counterparties (CCPs) . The CCP stress test framework drafted by ESMA for the purpose of this exercise is supported by an adverse market scenario provided by the European Systemic Risk Board (ESRB). Mandated under the European ...
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ESMA launches a call for evidence on the structure of European equity markets 30 April 2026 Trading The European Securities and Markets Authority (ESMA) has published a call for evidence (CfE) presenting a data driven analysis of the evolution of trading in European equity markets between 2022 and 2025, based on MiFIR transaction reporting data. The CfE invites stakeholder feedback on observed trends and their potential regulatory implications. The analysis shows that European equity markets ...
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ESMA consults on guidelines on endorsement under the ESG Ratings Regulation 29 April 2026 Credit Rating Agencies The European Securities and Markets Authority (ESMA) has launched a public consultation on draft guidelines on endorsement under the ESG Ratings Regulation 1 . The consultation paper sets out ESMA’s proposed approach to the endorsement of non-EU ESG ratings under the regulatory framework and seeks feedback from ESG rating providers and other stakeholders on the draft guidelines. Th...
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Joint Committee annual report highlights digitalisation, cyber resilience and sustainable finance as key priorities of 2025 24 April 2026 Joint Committee The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) today published its Annual Report for 2025 , setting out the main priorities and achievements of its cross-sectoral work over the past year. In 2025, the Joint Committee focused on protecting consumers in increasingly digital financial markets, stren...
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ESMA support ESEF implementation with updated taxonomy 21 April 2026 Electronic reporting The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published the 2025 European Single Electronic Format (ESEF) XBRL taxonomy files , together with an updated ESEF Conformance Suite . These materials support issuers and software vendors in preparing 2026 IFRS consolidated financial statements using the most up‑to‑date ESEF format. The 2025 taxono...
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ESMA launches a call for evidence on restricted subscription and private credit ratings 16 April 2026 Credit Rating Agencies The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today launched a call for evidence to gather stakeholder views on the purposes, market practices, needs and risks associated with restricted subscription and private credit ratings. ESMA is encouraging all interested stakeholders to share views, data and analysis i...
ESMA has launched a call for evidence on restricted subscription and private credit ratings to gather stakeholder input on their market practices, uses, risks, and potential regulatory gaps under the CRA Regulation. This matters because rising use of these non-public ratings could prompt future clarifications or adjustments to ensure consistent standards with public ratings, impacting credit rating agencies (CRAs) and users reliant on them for regulatory or investment purposes.
What Changed
There are no immediate regulatory changes; this is a fact-finding call for evidence to assess whether adjustments to the CRA Regulation are needed. ESMA seeks views on definitions (e.g., restricted subscription ratings as selectively distributed to limited subscribers with economic interest; private ratings excluded from CRA scope if not distributed to >150 persons), production processes, governance comparability to public ratings, distribution risks, and market needs. Potential future outcomes include enhanced clarity on CRA Regulation application, but none are confirmed yet.
Suggested Considerations
- Review the full Call for Evidence document and annexes for specific questions on restricted subscription (Annex I) and private credit ratings (Annex II).
- Prepare and submit evidence-based responses addressing key areas: use cases/benefits vs. public ratings, contracting/distribution parties, analytical/governance comparability, transparency impacts, risks/mitigations, and multi-CRA practices.
- Provide quantitative data, concrete examples, and rationale; indicate specific questions and alternatives considered.
- Submit online by 31 May 2026 using the docx reply form; note responses may be published unless confidentiality requested.
Key Dates
- ESMA reviews responses to assess potential regulatory adjustments under CRA Regulation
- Deadline for submitting evidence-based responses, including quantitative data and market examples, via ESMA's online consultation form in docx format
Compliance Impact
Urgency: Medium - This is not mandatory rulemaking but a critical opportunity to influence potential CRA Regulation clarifications amid growing private rating use, which could standardize governance/internal controls or expand scope. Firms using or issuing these ratings should engage to mitigate risks of future unaddressed practices leading to enforcement or restrictions; inaction may expose gaps if ESMA identifies inconsistencies with public rating standards.
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
Asset ManagerBankAll Firms
ESMA releases reporting templates and instructions for the Active Account Requirement 13 April 2026 CCP Market data The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published the reporting templates and instructions for the Active Account Requirement (AAR) reporting under European Market Infrastructure Regulation (EMIR 3). The new templates set out in detail how entities subject to the AAR should report the required information to ...
All Firms
ESMA publishes latest edition of its newsletter 10 April 2026 ESMA newsletter The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published today its latest edition of the Spotlight on Markets newsletter. This edition opens with ESMA’s actions to simplify the retail investor journey and make investing more accessible, setting out steps to support retail participation in capital markets. Top news highlights include the publication of t...
ESMA's latest *Spotlight on Markets* newsletter (edition 42, published 10 April 2026) summarizes recent supervisory, enforcement, and policy actions, emphasizing simplification of retail investor access, high market risks per the first 2026 TRV report, and key publications on transparency, suitability, MiFID II/MiFIR data, and Listing Act compliance.[User Query] This matters for compliance teams as it signals ESMA's priorities in reducing regulatory burdens while enhancing investor protection and market transparency amid a high-risk environment.
What Changed
- The newsletter highlights no immediate binding rules but flags forthcoming or proposed changes via publications:
- Trends, Risks and Vulnerabilities (TRV) Report 2026: Identifies high-risk EU financial markets, urging heightened risk monitoring.[User Query]
- Annual transparency calculations for equity and equity-like instruments: Updates pre- and post-trade transparency thresholds, published 27 February 2026.[User Query]
- Joint EBA-ESMA consultation on revised suitability assessment: Proposes updates to requirements for banks and investment firms on assessing client knowledge and needs under MiFID II.[User Query]
- ESMA proposals to simplify MiFID II/MiFIR obligations on market data: Aims to streamline reporting and data access burdens.[User Query]
Suggested Considerations
- Review and implement transparency calculations: Adjust trading systems and disclosures for equity/equity-like instruments per 27 February 2026 publication.
- Respond to consultations: Submit feedback on suitability (by 25 May 2026), EMIR 3 (20 April), MAR delays (29 April), CCP collateral (30 April); attend 15 April hearing.
- Assess TRV risks: Conduct internal risk reviews aligning with high-risk market warnings; update policies on retail investor journeys and fund costs.[User Query]
- Update compliance programs: Incorporate MiFID II/MiFIR simplification proposals, Listing Act statement, market abuse guidelines, EMIR 3, sustainability reporting, and new Q&As.[User Query]
- Monitor enforcement: Review supervisory actions for peer benchmarks (e.g., similar to prior MFSA review).
Key Dates
Publication of annual transparency calculations for equity and equity-like instruments
Release of first 2026 TRV report and newsletter; .
Public hearing on EBA-ESMA joint guidelines on suitability of management body and key function holders
Consultation deadline on regulatory standards for post-trade risk reduction services under EMIR 3
Consultation on MAR Guidelines on delay in disclosure of inside information
Compliance Impact
Urgency: Medium. This newsletter compiles ongoing developments rather than enacting immediate rules, but tied consultations (e.g., suitability by 25 May 2026) and recent publications (e.g., transparency calculations) require prompt review to avoid enforcement risks in a high-risk market flagged by TRV.[User Query] It matters for aligning with ESMA's simplification push while preparing for stricter suitability, data, and risk rules, potentially reducing costs but increasing scrutiny on retail protection and transparency.
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
Asset ManagerBroker DealerBank ESMA clarifies expectations in the run-up to the launch of EU’s Consolidated Tapes 01 April 2026 Market data Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published Questions and Answers (Q&As) on the onboarding of data contributors to the EU’s Consolidated Tapes (CTs), and on the operational rules for the Consolidated Tape Providers (CTPs). The goal is to increase certainty for all market participants in anticipation of...
ESMA has issued Q&As clarifying expectations for data contributors onboarding to the EU's Consolidated Tapes (CTs) for equities, bonds, and derivatives, emphasizing pre-go-live cooperation with selected Consolidated Tape Providers (CTPs). This matters because it mandates trading venues and Authorised Publication Arrangements (APAs) to establish data transmission setups ahead of the **01 April 2026** launch, ensuring market transparency under MiFIR while minimizing disruptions. Compliance professionals must prioritize this to avoid supervisory scrutiny from ESMA and National Competent Authorities (NCAs).
What Changed
- - Mandatory pre-authorization engagement: Data contributors (trading venues and APAs) must cooperate with selected CTPs *before* formal CTP authorization to set up data transmission, including...
- CTP confidentiality obligations: Selected CTPs must implement safeguards for data confidentiality and integrity during preparatory phases.[User Query]
- Legal obligation reinforcement: ESMA and NCAs remind that data contribution to CTPs is a binding requirement from CT go-live, tied to MiFIR.[User Query]
No new rules are introduced; this clarifies...
Suggested Considerations
- For data contributors: Immediately engage selected CTPs (EuroCTP, fairCT; derivatives post-selection) to agree transmission protocols, conduct connectivity testing, and complete end-to-end testing before 01 April 2026 go-live.[User Query]
- For CTPs: Deploy confidentiality/integrity safeguards for pre-authorization data; prepare operational rules per Q&As (accessible via ESMA's online tool).[User Query]
- For all firms: Review ESMA Q&As via online tool; update internal policies, IT systems, and vendor contracts for CT compliance; coordinate with NCAs if needed.[User Query]
- Document cooperation efforts to demonstrate readiness during ESMA/NCAs supervision.
Key Dates
- ESMA selected fairCT for bonds CTP (authorization ongoing).
- ESMA selected EuroCTP for equities/ETFs CTP (authorization ongoing)
- ESMA launched derivatives CTP selection
- Deadline for derivatives CTP selection participation requests
- CTs go-live; mandatory data contribution from trading venues/APAs begins.
Compliance Impact
Urgency: High – With CT go-live just days away (01 April 2026), failure to complete onboarding risks non-compliance with MiFIR obligations, potential enforcement by ESMA/NCAs, and market access disruptions. This amplifies operational resilience demands amid MiFIR review, affecting data reporting workflows for Capital Markets & Trading firms.[User Query]
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
Broker DealerAll Firms
No description available.
The ECB imposed a €6.2 million penalty on BofA Securities Europe SA for intentionally breaching market risk reporting requirements between 2022 and 2024. The bank systematically underreported risk-weighted assets by including unauthorized sovereign bond option positions in its internal models, resulting in inflated capital ratios and misrepresented financial strength—a "severe" breach that signals the ECB's heightened enforcement focus on reporting accuracy and internal control governance.
What Changed
- This enforcement action does not introduce new regulatory requirements but rather clarifies existing obligations:
- Internal Models Scope Limitation: Banks must strictly adhere to supervisory permissions when applying internal models approaches; unauthorized asset classes cannot be included regardless of...
- Risk-Weighted Asset Accuracy: RWA calculations must reflect actual supervisory permissions, not theoretical modeling capabilities
- Capital Ratio Integrity: Misreporting of RWAs directly affects CET1 ratios and capital adequacy disclosures, which are fundamental to regulatory reporting
- Intentionality Standard: The ECB's classification of this breach as "intentional" (rather than negligent) indicates that awareness of supervisory limitations combined with non-compliance triggers...
Suggested Considerations
- *Immediate (for all firms with internal models):
- *Audit Internal Models Scope: Conduct comprehensive review of all asset classes currently included in internal models approaches to confirm supervisory permission exists for each category
- *Verify Sovereign Bond Derivatives Treatment: Specifically validate that all sovereign bond options, forwards, and other derivatives are explicitly covered by supervisory approval documentation
- *Reconcile RWA Calculations: Recalculate historical RWAs (at minimum for the past 3-5 years) to identify any unauthorized inclusions and assess whether prior reporting was accurate
- *Strengthen Internal Controls: Implement automated controls to prevent unauthorized asset classes from being included in model calculations, with documented supervisory permission matrices
Key Dates
2024; - Period during which BofA Securities Europe SA committed the breach across six consecutive reporting periods
- ECB penalty announcement and effective date
- Bank has the right to challenge the decision before the Court of Justice of the European Union (no statutory deadline specified, but typically within 2 months of notification)
Compliance Impact
Urgency: CRITICAL
AI-generated analysis. May contain errors or omissions — verify with the
original ECB source
before acting. Full disclaimer.
BankBroker Dealer
Postponement of the rollout for Commodity Derivatives Weekly Position Reporting 27 March 2026 Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is postponing the rollout of the new solution for Commodity Derivatives Weekly Position Reporting, originally scheduled for 1 April 2026. The decision follows the identification of issues during the final testing phase, which require further corrective actions to ensure system stability ...
Broker DealerAll Firms
No description available.
BankAsset ManagerBroker Dealer
No description available.
BankAsset ManagerBroker Dealer
No description available.
Bank
SEC confirms exemption for directors and officers of EEA Foreign Private Issuers 18 March 2026 Market Abuse Post Trading The United States Securities and Exchange Commission (SEC) has decided to exempt directors and officers of European Economic Area (EEA) foreign private issuers (FPIs) from the reporting requirements under Section 16(a) of the US Securities Exchange Act of 1934. The SEC’s decision means that directors and officers of EEA FPIs will not be required to comply with these specifi...
Asset ManagerBroker DealerBank
ESMA sets out actions to simplify the retail investor journey and make investing more accessible 12 March 2026 Investor protection Press Releases The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its takeaways from the 2025 Call for Evidence (CfE) on the retail investor journey. Taking into account the input from stakeholders, ESMA outlines a number of actions and operational improvements it will take forward to make it ea...
Asset ManagerWealth ManagerBank EU financial markets enter 2026 amid high-risk environment 11 March 2026 Press Releases Risk monitoring The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, published today its first risk monitoring report of 2026 , outlining the key risks and vulnerabilities in EU financial markets. ESMA finds that risks of market and systemic stress remain high despite resilient market performance in the second half of 2025. Our risk assessment for the s...
BankBroker DealerCrypto Exchange No description available.
BankAsset ManagerBroker Dealer
New investment funds drive reduction in costs to investors 03 March 2026 Fund Management Press Releases Risk monitoring The European Securities and Markets Authority (ESMA), the EU financial markets regulator and supervisor, today publishes its 2025 market report on the costs and performance of EU retail investment products . This eighth Costs and Performance report shows that ongoing costs in the EU continued to decline in 2024. This is however mostly due to new investment funds entering the...
Asset ManagerBroker DealerWealth Manager
ESMA publishes the results of the annual transparency calculations for equity and equity-like instruments 27 February 2026 Market data Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published today the results of the annual transparency calculations for equity and equity-like instruments, which will apply from 6 April 2026. The calculations made available include: the liquidity assessment as per Articles 1 to 5 of CDR 201...
Broker DealerBank
New Q&As available 27 February 2026 CCP Digital Finance and Innovation Financial reporting Issuer disclosure Transparency The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, has published or updated the following Questions and Answers: European crowdfunding service providers for business Use of fiduciary (nominee) structures in equity crowdfunding (2601) Markets in Crypto-Assets Regulation (MiCA) Clarification on Withdrawal Requirements under Article 7...
ESMA has published or updated multiple Q&As covering European crowdfunding, MiCA for crypto-asset service providers (CASPs), EMIR for central counterparties (CCPs), and Transparency Directive requirements on financial reporting and alternative performance measures (APMs). These updates provide clarifications on operational, reporting, and disclosure obligations, enhancing supervisory convergence and compliance certainty amid evolving EU regulations like MiCA and IFRS 18. Compliance professionals must prioritize these to avoid enforcement risks, particularly with upcoming effective dates in 2027.
What Changed
- - Crowdfunding: New Q&A (2601) on use of fiduciary (nominee) structures in equity crowdfunding, clarifying permissible structures for service providers.
- MiCA (CASPs): Updates include clarification on withdrawal requirements under Article 75 (2320); fixed overheads calculation (2349); interests from client funds at credit institutions (2486); fiat...
- EMIR (CCPs): New Q&As on AAR threshold calculation (2418, 2779), AAR representativeness obligation (2776, 2777), and AAR stress testing (2778), building on ESMA's supervisory briefing for...
- Transparency Directive: New Q&A (2775, effective 1 January 2027) on IFRS 18 and APMs interaction; updated Q&As (effective 1 January 2027) on measures in/outside financial statements (1868), interim...
Suggested Considerations
- Review and update policies: CASPs must align withdrawal processes (Art. 75), overhead calculations, client fund interest handling, fiat payout mechanisms, offer/placing distinctions, and trading platform compliance with Title II.
- Crowdfunding firms: Assess and document use of nominee structures per Q&A 2601.
- CCPs/counterparties: Implement AAR reporting for thresholds, representativeness (with subcategory identification and trade reporting examples), and stress testing; reference ESMA's supervisory briefing for compliance models.
- Issuers/reporters: Revise APM disclosures for IFRS 18 compatibility, ensuring prominence, clear definitions, and consistent presentation inside/outside statements effective 1 January 2027.
- General: Integrate Q&As into compliance training, internal audits, and NCA reporting; monitor ESMA's Questions and Answers section for full texts.
Key Dates
- Publication date of new/updated Q&As on crowdfunding, MiCA, EMIR, and Transparency Directive
- Effective date for new Q&A on IFRS 18 & APMs interaction (2775) and updates to APM-related Q&As (1868, 1874, 1875, 1877)
- Deadline for trading platform operators under MiCA to ensure compliant white papers for legacy tokens (related context from prior MiCA Q&As)
Compliance Impact
Urgency: High - These Q&As address supervisory priorities in high-risk areas like crypto (MiCA) and CCP resilience (EMIR), with imminent 2027 deadlines for reporting changes aligning to IFRS 18. Non-compliance risks fines, authorization delays, or supervisory actions, especially as ESMA emphasizes convergence (e.g., AAR briefing). Firms in crypto/digital assets face heightened scrutiny amid MiCA rollout, while reporters must adapt quickly to avoid disclosure breaches.
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
Crypto ExchangeBroker DealerFintech ESMA consults on post-trade risk reduction services under EMIR 3 26 February 2026 Post Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a consultation on the requirements for how post-trade risk reduction (PTRR) services can benefit from the conditioned exemption from the clearing obligation introduced under the European Market Infrastructure Regulation (EMIR 3). ESMA is seeking feedback on several elements of the ...
ESMA has launched a consultation on draft Regulatory Technical Standards (RTS) that establish requirements for **post-trade risk reduction (PTRR) services** to qualify for a conditioned exemption from the mandatory clearing obligation under EMIR 3. This framework is critical because it balances market efficiency gains from risk reduction tools against systemic risk concerns, requiring compliance professionals to understand new operational, transparency, and monitoring requirements before the standards take effect.
What Changed
- The draft RTS introduce a structured framework governing how PTRR services operate under the clearing obligation exemption:
Eligible Service Types
The standards focus on three primary PTRR service...
- Market risk neutrality in PTRR exercises—transactions must not alter the overall market risk profile of portfolios
- Required risk reduction in submitted portfolios—genuine risk mitigation rather than speculative activity
- Compliance with pre-agreed rules and reasonable, transparent, non-discriminatory conduct
Operational & Governance Framework
The RTS establish requirements across multiple dimensions:
- Transparency towards participants in PTRR exercises
Suggested Considerations
- *For PTRR Service Providers:
- *Assess current operations against proposed RTS requirements, particularly regarding market risk neutrality and risk reduction thresholds
- *Review algorithm safeguards and execution protocols to ensure compliance with transparency and non-discrimination standards
- *Establish record-keeping systems capable of documenting PTRR exercises and demonstrating exemption qualification
- *Prepare monitoring capabilities to support NCA oversight and supervisory reporting
Key Dates
- ESMA launches consultation
- ESMA considers feedback received and prepares final report
- Deadline for stakeholder feedback submissions
- Draft RTS submitted to the European Commission
Compliance Impact
Urgency: HIGH
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
Broker DealerAsset ManagerBank
ESMA issues a supervisory briefing on algorithmic trading 26 February 2026 Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today published a supervisory briefing to support consistent supervision of algorithmic trading across the EU. The briefing provides National Competent Authorities (NCAs) with practical tools and clarified expectations for supervising firms engaged in algorithmic trading under MiFID II. It focuses on key a...
Broker DealerFintechAll Firms
The EBA and ESMA consult on revised suitability assessment requirements for banks and investment firms 25 February 2026 Investor protection The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) today launched a consultation on the revised joint guidelines on the assessment of the suitability of members of the management body and key function holders . The revised guidelines form part of a broader package designed to harmonise suitability assessments and...
The EBA and ESMA have launched a consultation on revised joint guidelines updating suitability assessments for management body members and key function holders in banks and investment firms, incorporating new requirements from the revised CRD and MiFID II to enhance harmonization and supervisory convergence. This matters for compliance professionals as it introduces mandatory assessments for additional roles, strengthens AML/CFT links, and includes simplifications to reduce burdens, potentially impacting governance processes once finalized and replacing the 2021 guidelines.
What Changed
- - Incorporation of revised CRD requirements for large institutions, including ex-ante applications where authorities perform ex-post assessments, and mandatory suitability assessments for key roles...
- Expanded application to CRD-covered entities and MiFID II investment firms, with further specifications for third-country branches.
- Strengthened integration with AML/CFT framework, providing guidance on identifying reasonable grounds to suspect money laundering or terrorist financing risks during assessments.
- Introduction of targeted simplifications to streamline processes, reduce administrative burdens, and offer greater flexibility/clarity for institutions and supervisors.
- Parallel EBA consultation on RTS specifying standardized documentation (e.g., suitability questionnaires, CVs, internal assessments) for large institutions to ensure consistent submissions.
Suggested Considerations
- Assess current suitability processes against new requirements (e.g., ex-ante applications, AML/CFT checks, third-country branch specs) and prepare for mandatory assessments of additional roles like CFOs.
- For large institutions, evaluate EBA RTS on documentation and align internal templates (e.g., suitability questionnaires, CVs).
- Participate in public hearings on 15 April 2026 if relevant.
- Plan governance updates, including ongoing monitoring of collective/individual suitability and corrective measures.
Key Dates
15:30; - Public hearing on joint guidelines
16:30; - Public hearing on EBA RTS
- Deadline for submitting comments on joint guidelines and EBA RTS
25 May 2026; - EBA publishes all contributions (unless requested otherwise)
consultation); - Revised guidelines enter into force, repealing 2021 guidelines
Compliance Impact
Urgency: High - As a consultation launched today (25 February 2026), firms have ~3 months to engage, but final guidelines will repeal existing ones, mandating process updates for core governance/AML functions in banks and investment firms; delays risk non-compliance with harmonized EU standards, especially for large institutions facing RTS on documentation. Matters due to expanded scope (e.g., CFOs, third-country branches) and AML ties, amplifying fit-and-proper regime enforcement amid supervisory convergence push.
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
BankBroker DealerAll Firms
ESMA sets out clearing thresholds under EMIR 3 25 February 2026 Post Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its draft Regulatory Technical Standards (RTS) setting out new and revised clearing thresholds (CTs) under EMIR 3. The proposed thresholds ensure continuity in the coverage of systemic risk in over‑the‑counter (OTC) derivative markets while avoiding unnecessary complexity and additional compliance ...
Asset ManagerBankBroker Dealer
ESMA reminds firms of their obligations under CFD product intervention measures amid rising offerings of perpetual futures 24 February 2026 Investor protection The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has issued a statement reminding firms of their obligation to assess whether newly offered products fall within the scope of existing product intervention measures on contracts for differences (CFDs). The statement responds to the...
Broker DealerCrypto ExchangeAll Firms
ESMA simplifies MiFID II/ MiFIR obligations on market data 23 February 2026 Guidelines and Technical standards Market data Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has withdrawn its guidelines on the MiFID II/ MiFIR obligations on market data , effective immediately, reflecting its ongoing commitment to simplifying rules and reducing unnecessary compliance burdens for market participants. The decision aligns the framewo...
ESMA has immediately withdrawn its guidelines on MiFID II/MiFIR market data obligations to align with the new Regulatory Technical Standards on making market data available on a reasonable commercial basis (RTS on RCB), reducing compliance burdens for market participants. This simplifies the regulatory framework by eliminating overlapping soft-law guidance, focusing firms on binding RTS requirements for data transparency, non-discrimination, and cost-based pricing. It matters as it streamlines operations amid broader MiFID II/MiFIR reviews, lowering costs while maintaining market integrity.
What Changed
- - Withdrawal of ESMA's previous guidelines on MiFID II/MiFIR market data obligations, effective immediately on 23 February 2026, to avoid overlap with binding rules.
- Full alignment with RTS on RCB, which sets criteria for transparency, non-discrimination, and reasonable commercial basis pricing of market data by trading venues and approved publication...
- Firms must now rely solely on RTS legal text for interpreting data provision, disclosure, and fee structures, without legacy interpretive guidance.
Suggested Considerations
- Review and map internal policies, procedures, and data disclosure practices directly to RTS on RCB criteria for transparency, non-discrimination, and cost-based pricing.
- For market data providers authorised before 23 November 2025: Use the transition period (until 22 August 2026) exclusively to renegotiate and align existing contractual arrangements, including pricing schedules, data packages, and service-level clauses, with RTS requirements.
- Document compliance with RTS across asset classes and distribution channels; cease reliance on withdrawn guidelines.
- Contact ESMA at RCB@esma.europa.eu for issues on RTS application or interpretative uncertainties.
Key Dates
- RTS on RCB enters into force
- Withdrawal of legacy ESMA guidelines takes effect immediately
- End of transition period for pre-authorised market data providers to align contracts with RTS on RCB
Compliance Impact
Urgency: High - Immediate guideline withdrawal requires prompt policy updates to avoid supervisory misalignment, though the 22 August 2026 transition eases contract changes for legacy providers. This matters as it reduces ambiguity and burdens in a simplifying regulatory environment, but non-compliance risks enforcement under binding RTS amid MiFID II/MiFIR reviews; proactive alignment prevents future disruptions.
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
Broker Dealer
ESMA consults on guarantees as CCP collateral and on certain aspects of CCP investment policy 23 February 2026 CCP The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a public consultation following the review of the European Market Infrastructure Regulation (EMIR 3). ESMA is encouraging all interested stakeholders, including non-financial counterparties (NFCs), to share their views about: the relevant conditions under which ...
ESMA has launched a public consultation under EMIR 3 to gather stakeholder input on conditions for CCPs accepting public guarantees, public bank guarantees, and commercial bank guarantees as collateral, eligibility of debt instruments for CCP investment policies, and secured arrangements for emission allowances as margins or default fund contributions. This matters because it permanently broadens eligible collateral types and extends access to NFC clients, enhancing EU CCP efficiency, competitiveness, and accessibility amid liquidity pressures in energy and other markets.
What Changed
- - Permanent expansion of eligible CCP collateral to include public guarantees, public bank guarantees, and commercial bank guarantees, with specified conditions for acceptance.
- Criteria for deeming debt instruments as eligible financial instruments under CCP investment policies.
- Requirements for highly secured arrangements to deposit emission allowances as margins or default fund contributions.
These build on EMIR 3's measures to broaden collateral scope and entity coverage,...
Suggested Considerations
- Review and Respond to Consultation: CCPs, clearing members, NFCs, and clients should analyze the paper, prepare responses to Annex 1 questions by 30 April 2026, and submit online; indicate confidentiality if needed.
- Assess Internal Policies: CCPs must evaluate current collateral, investment, and emission allowance frameworks against proposed conditions; clearing members/NFCs should model impacts on liquidity and margin posting.
- Monitor Developments: Track ESMA's final report and RTS submission; prepare for potential supervisory expectations on guarantee acceptance and debt instrument eligibility post-2026.
- Engage with Industry: Join associations like EACH for coordinated feedback on risk-based approaches and proportionality.
Key Dates
- ESMA to submit final draft technical standards to the European Commission following final report preparation
- Consultation response deadline; submit online via ESMA portal, addressing specific questions with rationale
Compliance Impact
Urgency: High - Firms face a tight 2-month window (from 23 February 2026) to influence final RTS, with implementation likely in 2027+ affecting core clearing operations; delays risk non-compliance with broadened collateral rules amid ongoing liquidity strains, especially for NFCs in volatile markets like energy.
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
BankBroker DealerAll Firms
ESMA publishes a supervisory briefing on the AAR representativeness obligation 20 February 2026 CCP The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published a supervisory briefing on the representativeness obligation linked to the active account requirement (AAR). The briefing sets out ESMA’s supervisory expectations for how counterparties should comply with and report on the AAR representativeness obligation. It provides guidanc...
ESMA has published supervisory guidance clarifying how counterparties must comply with the **representativeness obligation** under the Active Account Requirement (AAR), a key component of EMIR 3 that mandates EU counterparties maintain active accounts at EU central counterparties (CCPs) and clear representative volumes of derivatives trades. This briefing is critical because market participants and regulators have held conflicting interpretations of the representativeness requirement, creating compliance uncertainty that this guidance now resolves.
What Changed
The supervisory briefing addresses three core compliance areas:
Identifying Most Relevant Subcategories: Counterparties must continuously identify the five most relevant subcategories for each class of derivatives over each reference period, based on their trading activity. The guidance clarifies that the number of subcategories to select equals the maximum number available for that derivative class.
Representativeness Compliance Standard: Counterparties must clear, on an annual average basis, at least five trades in each of the most relevant subcategories per class of derivative contracts...
Suggested Considerations
- *Immediate (by 26 February 2026):
- Review the ESMA supervisory briefing and Commission Delegated Regulation (EU) 2026/305 in detail
- Assess whether your firm meets the €6 billion notional clearing volume outstanding threshold triggering AAR obligations
- Identify internal teams responsible for AAR compliance (trading, operations, compliance, reporting)
- *Short-term (by 31 July 2026):
Key Dates
- AAR RTS enter into force (20 days after Official Journal publication on 6 February 2026)
- First EMIR 3 representativeness reporting deadline
- First AAR compliance report due
Compliance Impact
Urgency: HIGH
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
Asset ManagerBroker DealerBank ESMA sanctions Regis-TR for serious breaches of organisational obligations 19 February 2026 Press Releases Securities Financing Transactions Supervision Trade Repositories The European Securities and Markets Authority (ESMA), the European Union’s (EU) financial markets regulator and supervisor, has fined the trade repository (TR) REGIS-TR, S.A. a total of EUR 1,374,000 for seven infringements under the European Market Infrastructure Regulation (EMIR) and the Securities Financing Transactions ...
ESMA has fined REGIS-TR, S.A. €1,374,000 for seven negligent breaches of organisational obligations under EMIR and SFTR, marking the first SFTR enforcement action and ESMA's highest fine against a trade repository. The breaches involved deficiencies in policies, procedures, organisational structure, operational risk management, and data confidentiality, compromising SFTR reporting and market data integrity. This underscores ESMA's intensified enforcement on trade repositories (TRs) to ensure high-quality data for market surveillance and financial stability.
What Changed
- This is an enforcement decision, not new legislation, but it reinforces existing EMIR and SFTR requirements on TRs, particularly:
- Policies and procedures: Must be adequate to ensure compliance, with clear roles and responsibilities for governing bodies (breaches under EMIR Art. 78(3) and SFTR Art.
- Organisational structure: Must ensure business continuity and orderly functioning, especially for SFTR services (breach under SFTR).
- Operational risk management: Identify and minimise risks via systems, controls, and procedures (breaches under EMIR and SFTR, Point (a) Section II Annex I EMIR).
- Data confidentiality and integrity: Protect information received under EMIR and prevent misuse (breaches under EMIR).
Fines were calculated per EMIR Art.
Suggested Considerations
- For REGIS-TR specifically: Cease three ongoing breaches (policies/procedures under EMIR/SFTR; SFTR organisational structure for business continuity) per ESMA supervisory measures (EMIR Art. 73).
- For all TRs:
- Review and strengthen policies/procedures for clarity on governance roles/responsibilities.
- Audit organisational structure for SFTR business continuity and orderly functioning.
- Conduct operational risk assessments, implementing controls/systems to minimise risks under EMIR/SFTR.
- Enhance data confidentiality/integrity protections and misuse prevention measures.
Key Dates
- REGIS-TR initial registration with ESMA under EMIR
- REGIS-TR registration extended to SFTR reporting
- ESMA Supervisory Report identifying serious indications of breaches
- Public notice references investigations leading to findings (dated in decision docs)
- ESMA Board of Supervisors meeting discussing the case
Compliance Impact
Urgency: High – As the first SFTR enforcement and record TR fine (€1.374M), it demonstrates ESMA's commitment to punitive action on negligence causing systemic data risks, directly threatening market integrity and surveillance. TRs face immediate remediation pressure (three breaches ongoing), with fines amplified by duration/systemic factors; non-TRs using TRs risk indirect exposure via poor data quality. Firms should prioritise audits now to avoid similar "negligent" findings.
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
All Firms
ESMA seeks input to streamline and simplify its market abuse guidelines 19 February 2026 Market Abuse Market Integrity The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a consultation proposing amendments to its Market Abuse Regulation (MAR) guidelines on the delay in the disclosure of inside information. The proposals align the guidelines with the disclosure regime as amended by the Listing Act, ensuring issuers face fewer...
ESMA has launched a consultation on amending its Market Abuse Regulation (MAR) guidelines on delaying disclosure of inside information, aligning them with changes introduced by the Listing Act to reduce issuer burdens and clarify requirements. This matters because it simplifies compliance for issuers by removing outdated delay justifications and adding new ones, effective from June 2026, potentially lowering administrative costs while maintaining market integrity.
What Changed
- - Alignment with Listing Act: Guidelines will reflect MAR amendments, removing the requirement for immediate disclosure of inside information on protracted processes before completion (effective June...
- New legitimate interests for delay: Adds scenarios such as public authority requests for non-disclosure, issuer need for more time to collect information, or involvement in multiple similar...
- Elimination of "no misleading the public" condition: Removes Guideline 2 entirely, as the Listing Act deleted this from MAR; replaces with requirement that delayed disclosure must not contradict the...
- Overall simplification: Reduces administrative burdens for issuers while providing clearer, non-exhaustive lists of delay situations.
Suggested Considerations
- Respond to consultation: Submit feedback via ESMA's online .docx form by 29 April 2026, focusing on proposed amendments, additional legitimate interests, and interactions with prudential supervision (Annex IV of Consultation Paper).
- Review and update policies: Assess current inside information disclosure procedures against proposed changes, particularly removing protracted process delays and incorporating new legitimate interests; prepare for non-contradiction with latest public announcements.
- Train staff: Update compliance training on MAR delay conditions ahead of June 2026, ensuring alignment with Listing Act changes.
- Monitor updates: Track ESMA's Q4 2026 final report for binding guidelines and adjust insider lists, PDMR notifications, and disclosure workflows accordingly.
Key Dates
Consultation launch date
Consultation response deadline; (10-week period)
Entry into application of amended MAR disclosure regime; (issuers no longer required to immediately disclose protracted process inside information)
ESMA final report and updated guidelines publication
Compliance Impact
Urgency: Medium. This is a consultation on simplifications that reduce burdens rather than impose new obligations, with changes not effective until June 2026—giving firms over four months post-consultation to adapt. It matters for issuers to engage now for influence and early policy alignment, avoiding future misalignment penalties under MAR, but lacks immediate enforcement risk.
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before acting. Full disclaimer.
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ESMA publishes list of supplementary deferrals for sovereign bonds 19 February 2026 Post Trading The European Securities and Markets Authority (ESMA), together with National Competent Authorities (NCAs), has agreed supplementary deferrals that may be applied on top of the standard Markets in Financial Instruments Regulation (MiFIR) deferral regime for sovereign bonds. ESMA and all NCAs, except the National Bank of Slovakia (NBS), have decided to allow the following supplementary deferrals: fo...
ESMA has authorized **supplementary deferrals for sovereign bond post-trade transparency**, allowing market participants to omit transaction volumes from immediate publication for medium-sized trades on liquid bonds, with full disclosure required by end-of-day. This measure balances market transparency with liquidity protection in EU sovereign bond markets, effective May 4, 2026, with a compressed implementation timeline requiring immediate compliance planning.
What Changed
Scope of Supplementary Deferrals
The decision permits volume omission deferrals for sovereign bonds classified as Group 1, Category 1 instruments (medium-size, liquid instruments) under MiFIR's post-trade transparency framework. Market operators and investment firms may defer publication of transaction volumes until end-of-trading-day, rather than the standard 15-minute deferral period.
Regulatory Rationale
ESMA determined that these deferrals are necessary to account for specific characteristics of sovereign bond markets, particularly protecting market liquidity and ensuring orderly price...
Suggested Considerations
- *Immediate Compliance Preparation (by May 4, 2026)
- *System Configuration: Trading venues and investment firms must update post-trade reporting systems to implement volume omission deferrals for Group 1, Category 1 sovereign bonds, with automated end-of-day publication triggers.
- *Instrument Classification: Establish processes to correctly identify which sovereign bonds qualify as Group 1, Category 1 under Commission Delegated Regulation (EU) 2017/583 (RTS 2), referencing Table 2.6 of Annex III.
- *APA Coordination: Approved Publication Arrangements must configure deferral management services to apply volume omission rules consistently across all reporting firms, with fallback procedures for system failures.
- *Policy Documentation: Update post-trade transparency policies, procedures, and client disclosures to reflect the new deferral regime and explain the timing of volume publication.
Key Dates
- ESMA Board of Supervisors adopts decision
- ESMA publishes supplementary deferrals list
- Original implementation date (subsequently extended)
- **Effective date for supplementary deferrals application**
Compliance Impact
Urgency: HIGH
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original ESMA source
before acting. Full disclaimer.
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Upcoming changes to the Euribor Panel 18 February 2026 Benchmarks The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is issuing a statement on the upcoming changes to the Euribor panel, in its capacity as supervisor of the European Money Market Institute (EMMI), administrator of Euribor. This statement concerns the announcement by EMMI that Barclays Bank PLC (BBPLC), based in the United Kingdom, will withdraw from the Euribor panel. The ...
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ESMA supports the simplified European Sustainability Reporting Standards and suggests targeted adjustments 18 February 2026 Issuer disclosure Press Releases Sustainable finance The European Securities and Markets Authority, the EU’s financial markets regulator and supervisor, has delivered its opinion on the draft revised European Sustainability Reporting Standards (ESRS) developed by EFRAG. ESMA strongly supports the European Commission’s goal of enhancing competitiveness and growth through ...
ESMA has issued an opinion supporting EFRAG's draft simplified European Sustainability Reporting Standards (ESRS) under the CSRD, praising improvements in readability and materiality focus while recommending targeted adjustments to enhance investor protection and financial stability. This matters for compliance professionals as it signals upcoming refinements to sustainability disclosures, with pragmatic supervision promised during the transition, potentially reducing short-term burdens but requiring monitoring of final delegated act adoption by summer 2026.
What Changed
- The draft revised ESRS introduce simplifications such as improved readability, language, format, reduced volume of requirements, and a focus on material matters.
- Introduce time limits to certain permanent reliefs (e.g., reliefs #3, #4, #9, #11 on quantitative information for anticipated financial effects until FY 2029, and metrics).
- Refine requirements on transition plans (e.g., consistent disclosure of absolute financed emissions and contextual information).
- Strengthen reporting on sustainability competences of administrative, management, and supervisory bodies.
- Enhance transparency on financial resources allocated to sustainability actions.
Suggested Considerations
- Monitor Commission process: Track final delegated act by summer 2026, incorporating ESMA/EBA/EIOPA/ECB opinions; review full ESMA opinion PDF for detailed recommendations.
- Assess current reporting: Evaluate use of permanent/temporary reliefs (e.g., #3/#4 on quantitative data, #9/#11 on metrics) and prepare for time limits; refine transition plans for emissions/targets.
- Enhance governance disclosures: Strengthen reporting on sustainability competences in management/supervisory bodies and financial resources for actions.
- Review subsidiary exemptions: Check materiality exclusions for sustainability risks/opportunities in consolidated statements.
- Prepare for supervision: Leverage NCAs flexibility during transition; integrate into data governance and risk systems per CSRD implementation trends.
Key Dates
- European Commission aims to adopt revised ESRS into a delegated act, considering ESMA, EBA, EIOPA, ECB opinions
- End of certain temporary reliefs on quantitative information for anticipated financial effects (if ESMA recommendations adopted)
adoption (2026+); - Learning curve period with pragmatic NCAs supervision and flexibility in examinations
Compliance Impact
Urgency: Medium - Not yet finalized (pending summer 2026 adoption), with pragmatic supervision promised, reducing immediate pressure; however, matters due to potential tightening of reliefs and disclosures impacting FY2026+ reporting, investor protection focus, and interoperability needs. Firms should prioritize if heavily using reliefs or with complex transition plans, as non-adjustment risks supervisory scrutiny post-learning curve.
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Asset ManagerBankInsurance ESMA publishes statement supporting the smooth implementation of the Listing Act – simplifying prospectus compliance for issuers 18 February 2026 Prospectus The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has issued a statement with practical guidance to national competent authorities (NCAs), issuers, and their advisors on the application of the revised prospectus framework introduced by the Listing Act. ESMA clarifies that any regis...
ESMA has issued a public statement providing practical guidance on implementing changes to the Prospectus Regulation (PR) under the Listing Act, clarifying the transitional regime for registration documents and universal registration documents approved or filed until 4 June 2026, allowing their continued use in prospectuses. This matters because it reduces compliance burdens for issuers accessing capital markets while preserving investor protection, enabling smoother transitions amid upcoming Level 2 measures. Issuers and advisors can rely on this non-binding guidance as ESMA expects NCAs to follow it.
What Changed
- - Transitional regime clarification under Article 48a PR: Registration documents and universal registration documents approved or filed until 4 June 2026 fall within the Article 48a(1) transitional...
- Interim disclosure guidance for new prospectus types: Until the Delegated Act amending Commission Delegated Regulation (EU) 2019/980 applies (expected post-5 March 2026), EU Follow-on prospectuses...
- Standardized presentation: Listing Act introduces clearer prospectus formats (e.g., banning generic risk factors), applying from March 2026 for secondary/growth prospectuses and June 2026 for...
Suggested Considerations
- Review and file/approve registration/universal registration documents before 4 June 2026 to leverage transitional regime; ensure ongoing supplements/amendments under old PR.
- For EU Follow-on/Growth prospectuses pre-Delegated Act: Structure per PR Annexes IV/V/VII/VIII; voluntarily adopt recommended Delegated Act disclosures for compliance with Articles 14a/15a.
- Advisors/issuers: Rely on ESMA statement for NCA interactions; update templates/processes for standardized formats and ESG disclosures (e.g., alignment with ICMA Green Bond Principles or EU Taxonomy if advertised).
- NCAs: Apply ESMA's clarified transitional approach to avoid gaps.
- Monitor Delegated Act adoption (likely pre-5 March 2026) and ESMA Level 2 technical standards.
Key Dates
Listing Act provisions for secondary and growth issuance prospectuses enter application
Expected non-application date of Delegated Act amending (EU) 2019/980; interim PR Annexes IV/V/VII/VIII and Articles 14a/15a apply, with recommended Delegated Act disclosures
Registration/universal registration documents approved/filed fall under Article 48a transitional regime; usable thereafter until validity ends
Bulk of Listing Act provisions (including standard prospectuses) enter application; new Level 2 requirements apply from related ESMA technical advice
Potential NCA flexibility for early implementation of new requirements if available
Compliance Impact
Urgency: High – Immediate relevance today (18 February 2026) for ongoing prospectus preparations, as it clarifies transitional use of existing documents and interim disclosures amid imminent deadlines (March/June 2026). Failure to align risks invalidation of documents or heightened scrutiny, but guidance eases burden reduction—critical for issuers timing listings to minimize costs while ensuring investor protection.
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original ESMA source
before acting. Full disclaimer.
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ESMA publishes latest edition of its newsletter 13 February 2026 ESMA newsletter The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published today its latest edition of the Spotlight on Markets Newsletter. This edition opens with ESMA’s Digital and Data Strategies , outlining how enhanced data use and improved digital tools will strengthen effective and risk-based supervision. Top news highlights include the launch of the selection ...
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The ECB imposed a €7.55 million periodic penalty payment on Crédit Agricole for failing to complete a climate-related and environmental (C&E) risk materiality assessment by the May 31, 2024 deadline, marking the second enforcement action in the ECB's escalating shift from guidance to active enforcement on climate risk supervision. This enforcement demonstrates that the ECB is moving beyond symbolic warnings to substantial financial penalties, signaling that banks must treat climate risk identification and assessment as mandatory compliance obligations rather than discretionary best practices.
What Changed
The ECB's enforcement action reflects several critical regulatory developments:
Mandatory Climate Risk Materiality Assessment
Banks must now conduct comprehensive materiality assessments of climate-related and environmental risks as a binding supervisory requirement, not a guidance recommendation. The assessment must identify all material C&E risks to which the institution is or might be exposed.
Binding Supervisory Decisions with Enforcement Teeth
The ECB has transitioned from non-binding guidance (2020) to legally binding decisions with accruing daily penalties for non-compliance.
Suggested Considerations
- *Immediate (Q1 2026):
- related and environmental risks, documenting exposure across the portfolio
- *Near-term (H1 2026):
- related risks into existing credit risk, operational risk, and market risk frameworks
- testing purposes
Key Dates
- ECB published non-binding Guide on climate-related and environmental risks
- ECB conducted economy-wide climate stress test covering 1,600 eurozone banks
- ECB published guidance on climate stress testing; all significant institutions received feedback letters with staggered timelines
- ECB issued binding supervisory decisions to 28 banks with specific compliance deadlines
- ECB decision requiring Crédit Agricole to conduct C&E risk materiality assessment
Compliance Impact
Urgency: CRITICAL
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original ECB source
before acting. Full disclaimer.
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Join us for ESMA’s Conference “A new era for EU capital markets” on 21 May 2026 05 February 2026 About ESMA The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is organising a high‑level conference “A new era for EU capital markets” on 21 May 2026 in Paris, France. Marking ESMA’s 15-year anniversary, the conference will bring together senior policymakers, regulators, leaders of major market infrastructures and financial institutions, as w...
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ESMA launches selection process for its next Chair 03 February 2026 About ESMA Careers Vacancies The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched the selection procedure for the position of ESMA Chair . This key leadership role offers the opportunity to shape the future of Europe’s financial markets and steer the organisation through an evolving regulatory and supervisory landscape. As a full‑time, independent professional...
ESMA has launched a selection process for its next Chair, a full-time independent role based in Paris responsible for leading strategic direction, governance, and representation amid evolving EU financial markets regulation. This matters for compliance professionals as the incoming Chair will influence ESMA's supervisory priorities, enforcement approach, and adaptation to upcoming legislative changes like market integration proposals, potentially impacting how firms navigate cross-border supervision and reporting requirements.
What Changed
This publication announces no direct regulatory changes or new requirements; it is a vacancy notice for ESMA's leadership position rather than a policy update or consultation imposing obligations on market participants. Responsibilities outlined align with the existing ESMA Regulation, including chairing the Board of Supervisors and Management Board, strategy development, and navigating potential governance adjustments from the European Commission's market integration proposal.
Key Dates
- Application deadline for ESMA Chair position
Compliance Impact
Urgency: Low. This leadership transition poses minimal immediate compliance burden, as it introduces no new rules or deadlines for firms; however, the new Chair's tenure from mid-2026 onward could shape enforcement consistency, risk-based supervision, and adaptation to reforms like DORA and EMIR 3, warranting long-term tracking by governance and public affairs teams.
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before acting. Full disclaimer.
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ESMA publishes report on cross-border marketing of funds including statistics on notifications 06 January 2026 The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published its third report on marketing requirements and marketing communications under the Regulation on cross-border distribution of funds . For the first time, the report includes statistics on notifications of cross-border marketing of funds. Drawing on input from ...
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ESMA signs Memorandum of Understanding with the Reserve Bank of India 27 January 2026 CCP International cooperation The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has signed a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI) to facilitate cooperation and exchange of information for the recognition of central counterparties (CCPs) established in India and supervised by RBI. This agreement marks a significant step...
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ESMA’s Digital and Data strategies support supervision of EU financial markets 13 January 2026 About ESMA Market data Press Releases The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has adopted a new Digital Strategy and updated its Data Strategy . They reflect ESMA’s commitment to smarter regulatory reporting and technology-driven supervision, promote synergies and innovation while reducing unnecessary complexity. The digital strategy...
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Principles for risk-based supervision: a critical pillar for ESMA’s simplification and burden reduction efforts 09 January 2026 Supervision The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, published today its principles for risk-based supervision . These principles support a common and effective EU-wide supervisory culture and strengthen the EU single market. The principles on risk-based supervision outline key concepts and foundationa...
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ESMA launches selection of Consolidated Tape Provider for OTC derivatives 05 January 2026 MiFID - Secondary Markets Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is launching the first selection procedure for the Consolidated Tape Provider (CTP) for over the counter (OTC) derivatives. Entities interested to apply are encouraged to register and submit their requests to participate in the selection procedure by 11 February 20...
ESMA has launched the first selection procedure for a **Consolidated Tape Provider (CTP) for OTC derivatives**, with applications due by 11 February 2026 and a decision expected by early July 2026. This initiative establishes a critical market infrastructure component to enhance transparency and efficiency in the EU's OTC derivatives market by consolidating post-trade data into a single, continuous electronic stream.
What Changed
- The regulatory framework introduces several substantive requirements:
- CTP Mandate: The selected provider will consolidate post-trade data from trading venues and other data contributors into a unified electronic stream, enabling market participants to access accurate,...
- Data Scope: The CTP will collect and disseminate OTC derivatives data in accordance with ESMA's Final Report on transparency for derivatives, with specific technical standards governing pre- and...
- Technical Standards: ESMA has finalized regulatory technical standards (RTS) prescribing data quality requirements for CTPs and data contributors.
- Implementation Date: All derivatives-related changes, including amendments to RTS 2 (derivatives transparency) and the OTC derivatives CTP data requirements, are scheduled for 1 March 2027.
Suggested Considerations
- *For prospective CTP applicants:
- *For trading venues and data contributors:
- trade OTC derivatives data to the selected CTP from 1 March 2027
- minute maximum delay for real-time dissemination
- *For market participants:
Key Dates
– Deadline for entities to register and submit requests to participate in the selection procedure
– ESMA to adopt reasoned decision on selected applicant
– Mandatory use of new OTC derivatives identifying reference data (Commission Delegated Regulation (EU) 2025/1003)
– Single application date for all derivatives-related changes: amendments to RTS 2, Package Order RTS, and OTC derivatives CTP data requirements
Compliance Impact
Urgency: HIGH
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original ESMA source
before acting. Full disclaimer.
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ESMA publishes latest Spotlight on Markets newsletter featuring updates on market integration and transparency 23 December 2025 ESMA newsletter The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published the latest edition of its Spotlight on Markets newsletter. This edition opens with ESMA welcoming the European Commission’s ambitious proposal on market integration, underlining the importance of deeper, more integrated and ef...
ESMA's latest *Spotlight on Markets* newsletter (November/December 2025 issue, published 23 December 2025) summarizes key regulatory updates on EU market integration, transparency enhancements, and supervisory actions, including welcoming the European Commission's market integration proposal and announcing an equity consolidated tape provider (CTP) selection. This matters for compliance professionals as it signals accelerating EU efforts to deepen capital markets integration, improve data transparency, and strengthen oversight under MiFID II and DORA, potentially requiring firms to adapt governance, reporting, and conflict management practices.
What Changed
- - ESMA welcomes the European Commission's 4 December 2025 legislative package on market integration, emphasizing robust governance and market infrastructure for deeper EU capital markets.
- Announcement of selected applicant for the equity consolidated tape provider (CTP), advancing MiFIR transparency for equity markets by improving post-trade data consolidation and access.
- Publication of ESMA's final report on Regulatory Technical Standards (RTS) for non-equity transparency, clarifying pre- and post-trade transparency rules for bonds, derivatives, and other non-equity...
- Launch of a Common Supervisory Action (CSA) on MiFID II conflicts of interest requirements to promote supervisory convergence and governance across Member States.
- European Supervisory Authorities (ESAs) designate critical ICT third-party providers under DORA, enhancing oversight of key outsourcing risks.
Suggested Considerations
- Review the final non-equity transparency RTS and assess impacts on trading and reporting systems for compliance by any upcoming application dates (not specified).
- Evaluate MiFID II conflicts of interest policies in preparation for the CSA; conduct internal audits and enhance training/staff attestations on identification and mitigation.
- Monitor equity CTP rollout for changes to post-trade data access and costs; update vendor contracts if applicable.
- For DORA-impacted firms, map exposures to designated critical ICT providers and strengthen due diligence, contractual clauses, and exit strategies.
- Asset managers: Audit fund names against guidelines and review UCITS distribution practices for cost transparency.
Key Dates
- European Commission publishes market integration legislative package; legislative process expected to take at least one year
- Newsletter publication date
Compliance Impact
Urgency: Medium - The newsletter highlights finalized standards (e.g., RTS, CTP) and imminent actions (e.g., CSA, DORA designations) that require proactive preparation, but lacks hard deadlines or immediate mandates. It matters because it previews intensified supervision on transparency, conflicts, and resilience, aligning with EU Capital Markets Union goals; firms delaying reviews risk findings in upcoming CSAs or audits, especially amid ESMA's push for convergence.
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
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ESMA publishes 2024 data on cross-border investment activity of firms 22 December 2025 Investor protection The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, in cooperation with National Competent Authorities (NCAs), completed an analysis of the cross-border provision of investment services in 2024 . Data was gathered from investment firms across 30 jurisdictions in the EU/EEA. The main findings include: Around 370 financial firms provid...
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New Q&As available 19 December 2025 Digital Finance and Innovation Fund Management Market Abuse Prospectus Sustainable finance The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, has published or updated the following Questions and Answers: Alternative Investment Fund Managers Directive (AIFMD) Directive Exclusion related to UNGC/OECD Guidelines (2734) Environmental, Social and Governance (ESG) rating activities Regulation Group-affiliated small ESG ra...
ESMA published new Q&As on December 19, 2025, addressing practical implementation questions across multiple regulatory frameworks including AIFMD, ESG rating activities, and sustainable finance rules. These guidance documents clarify regulatory expectations and promote consistent supervisory approaches across EU member states, making them essential for firms operating in affected areas to ensure compliant implementation.
What Changed
- The December 19, 2025 Q&A publication covers several regulatory domains:
- AIFMD Exclusion Criteria: New guidance on the UNGC/OECD Guidelines exclusion (Q&A 2734), clarifying when alternative investment fund managers must apply exclusion-related requirements
- ESG Rating Activities: Updated Q&As addressing regulatory requirements for ESG rating providers, including clarification on group-affiliated small ESG rating activities
- Sustainable Finance: Continued development of guidance under SFDR and related sustainability disclosure frameworks
- Digital Finance and Innovation: Guidance supporting implementation of digital finance rules
Suggested Considerations
- *Immediate (0-30 days):
- *Short-term (1-3 months):
- level information
- advertised securities per Annex 21 requirements
Key Dates
- ESMA's final report on prospectus ESG disclosure requirements became effective (referenced in search results as June 6, 2025 publication date)
- ESMA published updated consolidated Q&A on SFDR and Level 2 Regulation with new PAI disclosure guidance
- ESMA updated MiCAR Q&As on execution service classification
- ESMA published new Q&As across multiple regulatory domains
Compliance Impact
Urgency: HIGH
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
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ESMA selects EuroCTP to become the first Consolidated Tape Provider for shares and ETFs 19 December 2025 Press Releases Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has selected EuroCTP as the first Consolidated Tape Provider (CTP) for shares and exchange-traded funds (ETFs) in the EU, in a step forward for the transparency of equity markets in the EU. Natasha Cazenave, ESMA’s Executive Director, said: “Today’s announcement...
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ESMA reviews impact of Guidelines on ESG or sustainability related terms in fund names 17 December 2025 Risk monitoring Sustainable finance The European Securities and Markets Authority (ESMA), the EU’s financial market regulator and supervisor, released research today assessing the impact of its fund naming guidelines on ESG and sustainability-related terms. The study found that ESMA’s Guidelines have: Improved consistency in the use of ESG terms by increasing alignment of fund names and the...
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