What Changed
- Confirmation of Carlo Comporti as ESMA Chair starting 1 November 2026.
- Publication of the 2027 Annual Work Programme and establishing digital innovation as a Union Strategic Supervisory Priority.
- Regulatory focus on T+1 settlement transition, MiCA enhancements, cyber risks, and an MoU with the Securities and Exchange Board of India.
Financial market participants, regulated entities, investment firms, and institutional investors operating within or interacting with the European Union capital markets are impacted by the regulatory and supervisory focus areas outlined by the European Securities and Markets Authority (ESMA). ESMA, the financial markets regulator and supervisor for the EU, has published the latest edition of its Spotlight on Markets newsletter, detailing key developments from September and October 2026.
A significant leadership update featured in the newsletter is the appointment of Carlo Comporti as ESMA’s next Chair. His appointment was confirmed by the Council of the European Union, and he is scheduled to take up his position on 1 November 2026.
The publication highlights several strategic initiatives and regulatory publications:
- Work Programmes and Supervisory Priorities: ESMA released its 2027 Annual Work Programme, focusing on priorities for stronger, simpler, and more integrated EU capital markets. The publication also introduces a new Union Strategic Supervisory Priority on digital innovation, alongside joint priorities established by the European Supervisory Authorities (ESAs) for 2027.
- Market Operations and Risk Vigilance: Key initiatives include preparations for the transition to T+1 settlement, ESMA's second Trends, Risks and Vulnerabilities Report of 2026, and a call by the ESAs for heightened vigilance regarding external dependencies, cyber threats, and private markets.
- Digital Assets and International Cooperation: ESMA set out proposals to clarify and secure the Markets in Crypto-Assets (MiCA) framework for emerging services. The newsletter also highlights an analysis of continued growth in cross-border investment services and the signing of a Memorandum of Understanding with the Securities and Exchange Board of India.
Market participants should review these supervisory directions to ensure alignment with upcoming EU regulatory expectations, operational changes, and cross-border service requirements.
Who May Be Affected
Financial institutions, investment firms, market infrastructure providers, crypto-asset service providers, and cross-border investors operating in the EU.
Cross-Border Context
Covers cross-border investment service growth within the EU and bilateral cooperation with India through a Memorandum of Understanding with the Securities and Exchange Board of India.
What to check next
- Access the official Spotlight on Markets newsletter on ESMA's website to examine specific proposals regarding MiCA and T+1 settlement timelines.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.