European Securities and Markets Authority (ESMA)

🛡️ Cyber risk and digital resilience will drive ESMA’s Union Strategic Supervisory Priorities agenda in 2026. Building on strong engagement from national competent authorities and alignment with #DORA, ESMA is calling for continued efforts to strengthen ICT risk management and ensure effective supervisory implementation across the EU → https://lnkd.in/dG-sEH5M 🍃 Supervision of #ESG disclosures has been intense since 2022 and has helped promote the application of requirements across the #sustainable investment ecosystem. In 2026, the focus will shift to consolidating those achievements and targeting high‑risk areas.

🌿 #ESMA’s final report revises technical standards under the regulation on #ESG rating activities, aiming to reduce burden, enhance clarity, and simplify requirements → https://lnkd.in/e4yCXH42 It summarises feedback from the public consultation on 3 technical standards: - applications for authorisation and recognition - separation of activities - public disclosure requirements 💡 DYK | This regulation introduces a harmonised approach to enhance the integrity, transparency, and quality of ESG ratings, supporting the #SustainableFinanceEU agenda.

ESMA issued further guidance to support market participants during the transition to the revised #MiFIDII / MiFIR framework. 💡 The statement clarifies changes for: - Commodity derivatives and derivatives on emission allowances - New regime applicable to Systematic Internalisers (SI regime) - ‘Single’ volume cap mechanism (VCM) - Application of the revised transparency rules for bonds, structured #finance products, emission allowances, and equity instruments 📄 Read the full statement → https://lnkd.in/de3Uqy64

🟢 Let’s talk #TransitionFunds. Our latest analysis highlights how transition funds are shaping investment strategies in a rapidly evolving landscape. Have a read → https://lnkd.in/dEqMK86H ✨ Key findings: - Most transition funds define ambition at the portfolio level, sometimes complemented by real-economy impact goals. - Positive screening relies on forward-looking data and the European Commission’s definition of transition investments, though the role of #ESG ratings isn’t always clear. - Emissions and activity exposure are the most common metrics used to track progress. - Portfolio holdings show a strong focus on energy-intensive sectors, with engagement as a central strategy. 📢 Hear more about the conclusions in our webinar. Join us on 7 November. Register here → https://lnkd.in/dYVinD9H #SustainableFinanceEU

In 2024, over 970 administrative sanctions and measures were imposed across Member States in financial sectors under #ESMA’s remit, totaling more than EUR 100 million. ⚖️ Find more details in our second consolidated report on sanctions → https://lnkd.in/enRijUmb 📈 The largest fines were issued under the Market Abuse Regulation and the Markets in Financial Instruments Directive. Administrative fines accounted for more than 60% of all #sanctions and measures. 10% were settlements, amounting to over EUR 20 million. 📊 Swipe through the charts ⬇️ 

📤 #ESEF update: The reporting manual on the European Single Electronic Format has been revised to support harmonised annual financial reporting across the EU → https://lnkd.in/d-SgnRr 💡 Designed to assist issuers and software vendors, the manual offers practical guidance on creating ESEF-compliant documents, with a focus on Inline XBRL and its underlying XBRL specifications. 📌 To facilitate the financial data extraction and analysis from ESEF XBRL filings, #ESMA has also released a GitHub repository → https://lnkd.in/dh4S45Wy. Feedback on the code is welcome as we continue to refine the approach on reading and extracting information.

🟢 #ESMA’s final report on the technical standards under the European Green Bonds Regulation (#EuGB) set out criteria for external reviewers, aiming to support a robust and transparent #GreenBond market → https://lnkd.in/df6dY8AA 🎯 Technical standards address: - Criteria for assessing reviewers' systems, resources, and procedures. - The compliance function. - Internal policies and procedures. - Quality and reliability of information used for reviews. - Forms for recognition applications and notification of material changes. 🔁 The final report summarises the contributions received to the consultation and explains how this feedback has been considered in developing the revised technical standards.

#ESMA outlines European Common Enforcement Priorities (#ECEP) for the 2025 annual financial reports of listed issuers → https://lnkd.in/dbBZYJwA Key areas of focus: 📃 IFRS financial statements: Geopolitical risks and uncertainties, and segment reporting 🌿 #Sustainability statements: Materiality considerations in ESRS reporting, scope and structure of the sustainability statements 📱 ESEF digital reporting: Common ESEF filing errors found in the Statement of Cash Flows 💡 This year’s priorities reaffirm ESMA’s commitment to simplification and burden reduction, with continued attention to investor protection and market stability. 🌱 ESMA has also released a fact-finding exercise on the 2024 corporate sustainability reporting practices by European issuers. It examines disclosures on the double materiality assessment process and its outcomes, providing insights on enforcement priorities and future regulatory improvements → https://lnkd.in/dDnsG_Zm

⚙️ #ESMA proposes substantial revisions to the technical standards on #settlement discipline to enhance settlement efficiency across the EU, facilitate the transition to the T+1 cycle by 11 October 2027, and alleviate administrative burdens on central securities depositories and market participants → https://lnkd.in/dMVKDnuP 🛠️ The changes include: - Same-day (trade date) timing for trade allocations and settlement instructions. - Machine-readable formats for allocations and confirmations. - Implementation of hold and release, auto-partial settlement, and auto-collateralisation. - Updated provisions for monitoring and reporting of settlement fails. - A phased-in implementation schedule, starting in December 2026 and concluding by 11 October 2027, to support a smooth transition. 🔄 ESMA encourages market infrastructures, financial intermediaries and their clients to prioritise these regulatory changes as a key part of their T+1 transition strategy. Find all details in our final report → https://lnkd.in/dhXJC7Ja

Technical standards under #EMIR3 will make authorisations, extensions, and model validations for central counterparties (CCPs) more efficient and competitive. 📄 Find more details in #ESMA’s final reports → https://lnkd.in/dMXr9n8D ☑️ The two sets of RTS specify: - Requirements for extending authorisation and the documents needed for #CCPs when applying for initial or extended authorisations. - Validation criteria for CCPs’ model and parameter changes, and required documents for validation applications.