The European Securities and Markets Authority (ESMA) has published its September and October 2026 Spotlight on Markets newsletter, reviewing its leadership transition and priorities for delivering its 2027 agenda. Carlo Comporti will take office as chair on Nov. 1, 2026, following confirmation by the Council of the European Union. The previously published 2027 work program moves major initiatives into implementation, including simpler transaction and fund reporting and expanded supervision of market data and sustainable finance providers. A Union Strategic Supervisory Priority on digital innovation will begin in 2027, initially focusing on supervised entities’ use of artificial intelligence and tokenization. It will run alongside the existing priority on cyber and operational resilience. The edition also revisits ESMA’s recommendations for changes to the Markets in Crypto-Assets Regulation (MiCA), including stricter marketing safeguards, clearer cost disclosures and proportionate requirements for staking, lending and borrowing. Proposed supervisory changes include stronger powers against unauthorized providers and a regulated service category for firms offering access to decentralized finance protocols. For the EU’s previously scheduled move to settlement one business day after trading, or T+1, on Oct. 11, 2027, the newsletter reiterates that the regulatory framework is complete and firms should finalize technical preparations and begin testing across the trading and settlement chain. The first compliance milestone is Dec. 7, 2026, when investment firms and their professional clients must use standardized electronic communications, international messaging standards and formats that software can process for allocations and confirmations. Non-electronic methods are limited to temporary technical disruptions.

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