With the new European Commission now in office, there is perhaps more anticipation than usual for the publication of the regulator’s annual work programme. This year’s document is due on 11 February, but Global Regulation Tomorrow has jumped the gun with a comprehensive rundown of new and ongoing financial services initiatives that the commission will be looking at in 2025.
Particularly of interest to those in post trade would be T+1 settlement; the implementation of the Markets in Financial Instruments Directive (MiFID II) and Markets in Financial Instruments Regulation (MiFIR); and the adoption of technical standards under the European Market Infrastructure Regulation (EMIR 3.0).
Speed it up
Following a call for evidence in 2023, the European Securities and Markets Authority (ESMA) published a final report on shortening the settlement cycle in the EU in November 2024. The paper recommended a T+1 go-live date of 11 October 2027 and set a timeline for the industry to be ready for the transition by the end of 2026. According to Global Regulation Tomorrow, the next step in the preparations will happen in March this year, when the commission publishes a legislative proposal to make the necessary changes to the Central Securities Depositories Regulation (CSDR).
Nothing to hide
Together with ESMA, the commission will be working on the development and adoption of regulatory standards within the updated MiFID/MiFIR frameworks. Included are measures pertaining to post-trade transparency and rules regarding consolidated tape providers (CTPs). The selection process for a CTP for bonds started on 3 January, while the one for equities will begin in June this year.
Get active
With the entry into force of EMIR 3.0 on 24 December 2024, ESMA and the commission are currently looking at the adoption of technical standards under the EMIR framework. One priority is the active account requirement (AAR), which makes it mandatory for counterparties to hold an active clearing account with an EU CCP. ESMA currently has a consultation open until 27 January for the rules within the AAR.
