The UK Financial Conduct Authority (FCA) has published consultation paper CP25/31 outlining a proposed framework for introducing an equity consolidated tape (CT) in the UK, operated by a consolidated tape provider (CTP). The proposals are linked to broader considerations on the structure and transparency of UK equity markets in CP25/20. The FCA plans a separate consultation on the equity transparency regime in 2026.For the purposes of this consultation, the FCA states an equity CT collates and distributes market data, such as prices and trade volumes, across trading venues and over-the-counter transactions, providing a comprehensive view of equity markets. In the paper, "equity" is defined as including shares, exchange-traded funds, depositary receipts, certificates and similar instruments.  

Read more.

The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2025 has been laid before the UK Parliament, accompanied by an explanatory memorandum. This follows the draft version laid in July. The order amends the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO) to reform the ancillary activities exemption (AAE). The AAE allows firms dealing in commodity derivatives, emissions allowances or related derivatives as an ancillary activity to be exempt from seeking investment firm authorisation. The order introduces changes giving the FCA a new rule-making power to set criteria for determining when such trading qualifies for exemption. The current AAE is replaced with a more proportionate regime offering two options: (i) assessing whether the activity is ancillary to the firm's main business at group level; or (ii) checking whether the activity is below an annual monetary threshold determined by the FCA. The order also makes consequential amendments allowing the FCA to direct how firms provide calculation data under both tests and removes references to assimilated law that FCA rules will replace.

Read more.

The UK Financial Conduct Authority (FCA) has issued a statement following its September update regarding the legal challenge to its decision to award the bond consolidated tape provider contract. The FCA confirms it has applied to the High Court to lift the suspension on awarding the contract to Etrading Software. If granted, this will allow the FCA to proceed with signing the contract while defending the ongoing legal challenge, which it considers meritless. The FCA emphasises that delivering the tape's benefits promptly is in the public interest and confirms that its formal defence to the legal challenge will be submitted by the end of the week.

Five technical standards supplementing the Markets in Financial Instruments Regulation enabling the creation of the consolidated tape have been published in the Official Journal of the European Union (OJ):

• Commission Delegated Regulation (EU) 2025/1143 regarding regulatory technical standards (RTS) on the authorisation and organisational requirements for approved publication arrangements (APAs) and approved reporting mechanisms (ARMs), and on the authorisation requirements for consolidated tape providers, and repealing Commission Delegated Regulation (EU) 2017/571.
• Commission Delegated Regulation (EU) 2025/1155 regarding RTS specifying the input and output data of consolidated tapes, the synchronisation of business clocks and the revenue redistribution by the consolidated tape provider for shares and exchange traded funds, and repealing Commission Delegated Regulation (EU) 2017/574 from 2 March 2026. Articles 11 to 16 will apply from 2 March 2026.

Read more.

The UK Financial Conduct Authority (FCA) has published Handbook Notice 134, outlining amendments to the FCA Handbook resulting from the following statutory instruments:

• (i) Markets in Financial Instruments (Transfer of MiFID Organisational Regulation) Instrument 2025; (ii) Technical Standards (Markets in Financial Instruments Regulation) (Organisational Requirements) Instrument 2025; and (iii) Commodity Derivatives (Position Limits, Position Management and Perimeter) (No 2) Instrument 2025. These instruments mainly entered into force on 23 October, with other parts coming into force on 12 January 2026 and 19 January 2026. The instruments make changes relating to the MiFID Organisational Regulation. The FCA is keeping the substance of the MiFID Organisational Regulation requirements the same without any policy or scope changes. Most of the changes that have been made are to reflect its Handbook drafting style and to clarify drafting where possible.

Read more.

The European Securities and Markets Authority (ESMA) has published its final report with draft regulatory technical standards (RTS) that establish an EU code of conduct for issuer-sponsored research. The RTS supplement the revised Markets in Financial Instruments Directive, as amended by the Listing Act Directive. Under the revised framework, research distributed by investment firms to clients or potential clients that is paid for, fully or partially, by an issuer must be labelled as "issuer-sponsored research". No substantive changes have been made following the December 2024 consultation. A feedback statement is included in the final report in section 3. While the code is non-binding, ESMA emphasises that all research providers (whether independent or not) must comply with the EU code of conduct if they wish their analysis to be labelled and distributed as "issuer-sponsored research", otherwise it would have to be labelled as a marketing communication. The final draft RTS have been submitted to the European Commission for adoption, who has three months to decide whether to adopt them. If adopted, they will apply from 6 June 2026.

The European Securities and Markets Authority (ESMA) has published its second consolidated report on sanctions and measures imposed by national competent authorities in Member States in 2024. The report reveals that over 970 administrative sanctions and measures were issued in financial sectors under ESMA's remit, with the total aggregated value of administrative fines exceeding EUR100 million, an increase compared to 2023. The highest number of administrative sanctions and measures were imposed under the Market Abuse Regulation (MAR), the Markets in Financial Instruments Directive (MiFID) and the Markets in Financial Instruments Regulation (MiFIR).

The highest amounts of administrative fines for 2024 were imposed under MAR. The more granular data shows that over 60% of all administrative sanctions and measures imposed in 2024 were administrative fines, and 10% were issued using settlement procedures. ESMA also reports that no sanctions or measures were imposed under the Securities Financing Transactions Regulation (SFTR) or the Markets in Crypto-Assets Regulation (MiCAR), while a measure was issued for the first time under the European Crowdfunding Service Providers Regulation. ESMA highlights discrepancies in sanctioning powers across jurisdictions, including differences in the amounts of fines, number and types of sanctions and measures, and use of settlements.

The Financial Services and Markets Act 2023 (Commencement No.11 and Saving Provisions) Regulations 2025 were made and have been published. These Regulations are the eleventh commencement regulations made under the Financial Services and Markets Act 2023 (FSMA 2023). The Regulations continue the process of revoking certain pieces of retained EU law relating to financial services and restating them into UK domestic law, including through regulator-made rules. You may like to read our article "A boost for UK Financial Services" for further information.

In particular, these Regulations revoke the following:

• The UK MiFID Organisational Regulation (UK Commission Delegated Regulation (EU) 2017/565, otherwise known as the UK MiFID Org Regulation), on 23 October.
• The UK Prospectus Regulation ((EU) 2017/1129), on 19 January 2026.
• The UK PRIIPs Regulation (1286/2014), on 6 April 2026.

Read more.

The European Securities Markets Authority (ESMA) has issued a second public statement providing transitional guidance on the application of revised provisions under the Markets in Financial Instruments Directive II (MiFID II) and Markets in Financial Instruments Regulation (MiFIR) review. Key updates include the extension of position management controls to derivatives on emission allowances, a new weekly position reporting obligation for trading venues options and the removal of the quantitative test for Systematic Internaliser designation. The single volume cap mechanism (VCM) has now replaced the previous double VCM, with the first calculation results published on 9 October. Revised transparency rules for bonds, structured finance products, emission allowances and equity instruments will apply from 2 March 2026, with certain RTS 1 provision taking effect 20 days post-publication in the Official Journal of the EU.

Read more.

The UK Financial Conduct Authority (FCA) has published policy statement PS25/13, finalising the transfer of firm-facing requirements from the UK version of the Markets in Financial Instruments Directive Organisational Regulation (MiFID Org Reg) into the FCA Handbook. This follows the FCA's November 2024 consultation and Chapter 4 of Quarterly Consultation No 44 on the transfer of those requirements, as well as HM Treasury's publication of the Markets in Financial Instruments (Miscellaneous Amendments) Regulations 2025 (MiFIR Amendment Regulations), which restate certain definitions that are retained in domestic financial services law. The FCA is restating the MiFID Org Reg requirements without policy change, so firms may continue to follow existing practices. However, firms should update internal references accordingly to reflect the new location of the rules. The final rules are set out in the relevant statutory instruments included in the Annex to the policy statement.

Read more.

The UK Prudential Regulation Authority (PRA) has published final policy statement PS6/25, on the restatement of relevant firm-facing provisions from the UK version of the Markets in Financial Instruments Directive Organisational Regulation (MiFID Org Reg) into the PRA Rulebook. This follows its April consultation on the transfer of those requirements, as well as HM Treasury's publication of the Markets in Financial Instruments (Miscellaneous Amendments) Regulations 2025 (MiFIR Amendment Regulations), which restate certain definitions that must be retained in domestic financial services law. The PRA rules contain no material changes to the MiFID Org Reg requirements. In response to consultation feedback, the PRA has, however, made two changes to its draft rules: (i) to improve clarity for firms, the PRA has included a transposition table to help firms navigate the relocation of the rules; and (ii) reinstated provisions from Article 25 of the MiFID Org Reg relating to supervisory oversight but replacing the term "supervisory function" with "governing body" instead, which is defined in the Rulebook to reflect UK practice. The final rules and technical standards, set out in the statutory instruments appended to the policy statement, are expected to take effect on 23 October, subject to HM Treasury's commencement order to revoke the MiFID Org Reg.

The European Securities and Markets Authority (ESMA) has published updated reporting instructions and XML schema (version 1.2.0) for weekly commodity derivatives position reporting under MiFID II. The changes reflect amendments to ITS 4, as outlined in ESMA's final report on proposed amendments to MiFID II technical standards in relation to commodity derivatives. The amendments are in response to changes introduced by the MiFID II review, submitted to the European Commission in December 2024 and currently pending adoption. Beyond the changes directly originating from MiFID II, such as the requirement to publish two weekly reports and the exclusion of (spot) emission allowances from position reporting, the update also introduces harmonisation of reporting units for energy derivatives. The new schema and instructions will apply from 1 April 2026, after which reporting entities must use version 1.2.0 exclusively.

The UK Financial Conduct Authority (FCA) has published consultation paper CP25/25 (CP), alongside a press release, setting out its proposed regulatory framework for cryptoasset activities under the Financial Services and Markets Act 2000 (FSMA). This follows HM Treasury's (HMT) draft statutory instrument (SI) to bring qualifying cryptoasset activities within the scope of the Regulated Activities Order 2001 (RAO) and under the FCA's remit. Qualifying cryptoasset activities will include issuing qualifying stablecoins, safeguarding qualifying cryptoassets and specified investment cryptoassets, operating a qualifying cryptoasset trading platform (CATP), intermediation and staking. Firms and individuals undertaking these activities will require FCA authorisation before operating by way of business in the UK.

Read more.

The Markets in Financial Instruments (Miscellaneous Amendments) Regulations 2025 have been made and an explanatory memorandum published. The Regulations form part of the continued process to repeal and replace assimilated EU financial services law following Brexit. Specifically, these Regulations will restate, with appropriate modifications, key definitions from the Commission Delegated Regulation (EU) 2017/565 (MiFID Org Regulation) into UK law. The main affected legislation includes the Financial Services and Markets Act 2000 and the Financial Services and Markets Act 2000 Regulated Activities Order 2001. Clarificatory changes are also made to the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001 and the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017, and related cross references are updated in the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005.

Read more.

Delegated Regulation (EU) 2025/1768 and Delegated Regulation (EU) 2025/884 have been published in the Official Journal of the European Union (OJ), extending the scope of rules on fines and fees for data reporting service providers (DRSPs) to include consolidated tape providers (CTPs). Previously, these rules applied only to two types of DRSPs: approved publication arrangements and approved reporting mechanisms. The amendments align with the EU's review of the Markets in Financial Instruments Directive and Regulation, which aims to improve market data transparency and support the emergence of CTPs in the EU.

Read more.

The UK Financial Conduct Authority (FCA) has published the findings from its multi-firm review of principal trading firms' compliance with the detailed organisational requirements for algorithmic trading set out under the UK Markets in Financial Instruments Directive, specifically those outlined in the associated regulatory technical standards known as RTS 6. The review reveals progress in governance, notably in the quality of self-assessments and validation processes, but also exposes weaknesses such as outdated or incomplete policies, poor documentation, and inconsistent compliance oversight. While many firms demonstrated strong practices in maintaining algorithm inventories, such as detailed records outlining each algorithm's objective, ownership, market usage, and associated risk parameters, in some cases, the algorithmic inventory did not specify the individuals who were approved to operate the algorithm. Deployment protocols were generally formalised, with clear accountability and multi-layered approval processes, especially for new market entries or material changes. However, some firms had outdated policies or lacked clarity on what constituted a material change.

Read more.

The European Commission (EC) has published a draft delegated regulation amending Delegated Regulation 2017/567 as regards the obligation to provide market data on a reasonable commercial basis, the determination of what constitutes a liquid market for equity instruments, and the definition of and disclosure for post-trade risk reduction (PTRR) services under the markets in financial instruments regulation (MiFIR).

The proposed amendments follow and seek to reflect the MiFIR reform aimed at enhancing data transparency, removing obstacles to the emergence of consolidated tapes, optimising the trading obligations, and prohibiting receiving payment for order flow and parallel amendments to MiFID II.

Read more.

The European Securities and Markets Authority (ESMA) has published a press release to confirm that, effective from October, the EU will transition from the current double volume cap (DVC) mechanism to a single volume cap mechanism (VCM) as part of the Markets in Financial Instruments Regulation (MiFIR) Review. Under the new regime, trading under the reference price waiver will be capped at 7% of the total EU trading volume over the preceding 12 months for each equity and equity-like instrument. If this threshold is exceeded, trading venues must suspend the waiver for the affected instrument for three months, based on data published by ESMA under the new VCM webpage. To streamline compliance, VCM calculations will rely on transaction data collected by national competent authorities, and the DVC reporting system will be decommissioned in January 2026. ESMA has submitted amendments to the relevant regulatory technical standard, known as RTS 3, for adoption to reflect these changes, although the VCM transition will proceed regardless of the RTS 3 adoption timeline. ESMA advises interested parties to prepare for the new requirements, with the first publication of the VCM calculation results expected on 9 October.

The UK Financial Conduct Authority (FCA) has published Market Watch 82, outlining supervisory findings on transaction reporting under the UK's Markets in Financial Instruments regime. The FCA focuses on three key areas: (i) remedial timelines, where the FCA observed persistent inefficiencies in firms' operational frameworks, including delays in remediation caused by weak governance, fragmented internal processes and insufficient resourcing; (ii) back reporting, with case studies illustrating common causes of delayed back reporting, such as poor data governance and adverse impacts on business-as-usual operations; and (iii) breach notifications, where the FCA provides a table, summarising its supervisory observations of issue descriptions, root cause analysis and governance disclosures while also setting out best practices. The FCA confirms it will continue to monitor the quality of breach notifications closely.

The draft Financial Services and Markets Act 2023 (Mutual Recognition Agreement) (Switzerland) Regulations 2025 have been laid before Parliament and published with a draft explanatory memorandum. The Regulations seek to implement the UK's commitments under the Berne Financial Services Agreement (BFSA), signed with Switzerland in December 2023. The BFSA is an outcomes-based mutual recognition agreement covering a range of wholesale financial services, such as asset management, banking, investment services, insurance and financial market infrastructure, as well as investment services to high-net-worth and sophisticated individuals.

Read more.

The OTC Derivatives Risk Mitigation and Central Counterparties (Equivalence) (Switzerland) Regulations 2025 have been laid before Parliament and published with an explanatory memorandum. The Regulations, made on 16 July, grant equivalence to Switzerland's regulatory regimes for over-the-counter (OTC) derivatives and central counterparties (CCPs). The equivalence decision enables UK firms to rely on Swiss risk mitigation standards for OTC derivative contracts, subject to certain conditions being met, and allow Swiss CCPs to provide clearing services in the UK, subject to the CCP being recognised by the Bank of England (BoE). This removes duplicative regulatory requirements and supports cross-border financial market access as expressed under the Berne Financial Services Agreement (BFSA). The equivalence determinations were made following assessments by HM Treasury, with input from the UK Financial Conduct Authority, UK Prudential Regulation Authority and BoE, and are part of the UK's broader move to replace EU-inherited equivalence regimes with tailored Overseas Recognition Regimes. The Regulations enter into force on 1 January 2026.  The draft Financial Services and Markets Act 2023 (Mutual Recognition Agreement) (Switzerland) Regulations 2025, which have also been laid before Parliament, will implement other aspects of the BFSA. You may like to watch our webinar of 3 July in which our lawyers discuss the BFSA.

The UK FSMA 2000 (Markets in Financial Instruments) Amendment Regulations 2025 have been laid. The regulations extend the UK Financial Conduct Authority's (FCA) powers of direction to a new category of derivative, referred to as "applicable OTC commodity derivatives". This encompasses commodity derivatives traded over-the-counter that would otherwise fall outside scope of the FCA's powers because they were outside the definition of financial instrument, as specified in part 1 of schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001. The new term "applicable OTC commodity derivative" will replace the existing term "over the counter contract" in regulation 27 of the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017, which is being removed pursuant to paragraph 47 of schedule 2 to the Financial Services and Markets Act 2023. Accordingly, the amendment will come into force immediately after the 2023 Act changes are in force to ensure the changes are aligned.

The UK Financial Conduct Authority (FCA) has published a statement on its work to date reforming the UK capital markets, and what lies ahead in terms of consultations and developments expected later this year and in 2026. The statement notes the recent work carried out by the FCA in respect of the financial markets, and refers to those market reforms highlighted in the UK Chancellor of the Exchequer's speech delivered at Mansion House on 15 July, including the landmark reforms to the advice guidance boundary on the new regulated activity of targeted support, proposals to modernise the redress system and consultations on reforming the Senior Managers and Certification Regime.

Read more.

The UK Financial Conduct Authority has announced plans to review its client categorisation rules to unlock more investment opportunities for wealthy investors and support capital markets. The review will focus on maintaining proportionality and supporting economic growth by modernising the client classification regime, providing greater clarity and confidence for firms and forming part of a broader strategy to enhance the competitiveness of the UK's financial services sector. The FCA will consult on the elective professional client categorisation later this year.

The UK Financial Conduct Authority (FCA) has published consultation paper CP25/20 on the systematic internaliser (SI) regime for bonds and derivatives. The consultation builds on the November 2024 final policy statement which introduced new bond and derivative transparency rules for trading venues and discussed the future of the SI regime. Given the removal of the pre-trade transparency from SI's obligations in bonds and derivatives, the FCA is now consulting on the SI regime and continued alignment between the transparency and SI regimes, along with additional proposals aimed at enhancing the functioning of UK markets.

Read more.

The European Securities and Markets Authority (ESMA) has announced the selection of Ediphy (fairCT), a fintech company, as the first consolidated tape provider for bonds in the EU. The decision marks a significant step towards establishing consolidated tapes in the EU, contributing to the development of the Savings and Investment Union and enhancing capital markets in Europe. Ediphy (fairCT), was selected following a thorough assessment process against the criteria listed in the EU Markets in Financial Instruments Regulation. The firm met all eligibility requirements and achieved the highest overall score on the award criteria. ESMA now invites Ediphy (fairCT) to apply for formal authorisation without delay, after which it will operate the CTP for bonds for five years under ESMA's direct supervision.

HM Treasury (HMT) has published a policy note and draft statutory instrument on the ancillary activities exemption, which is an exemption (originally introduced in the revised EU Markets in Financial Services Directive) from investment firm authorisation requirements for firms that trade commodity derivatives or emission allowances as an ancillary activity to their main business. The exemption is intended for non-financial firms such as energy and other commodity trading firms which are active in both physical trading and financial instrument trading. Currently, firms must determine their eligibility for the exemption and ancillary activities test (AAT), which is burdensome and expensive for firms.

Read more.

The UK Financial Conduct Authority (FCA) has launched a consultation on its proposed revised approach to the ancillary activities test (AAT). The AAT is the test that firms must conduct to determine whether they can use an exemption (originally introduced under the revised EU Markets in Financial Instruments Directive) from investment firm authorisation requirements for their commodity derivatives or emission allowances trading business which is as an ancillary activity to their main business. The FCA's consultation is published on the same day as HM Treasury announced its revised policy approach to the exemption and the AAT. This approach will give the FCA powers to make rules in relation to the AAT and to set a new annual threshold for activity below which a person can also use the ancillary activities exemption (AAE).

Read more.

The draft Markets in Financial Instruments (Miscellaneous Amendments) Regulations 2025 has been laid before the UK Parliament under the Financial Services and Markets Act 2023 (FSMA 2023), together with a draft explanatory memorandum. The draft Regulations form part of the continued process to repeal and replace assimilated EU financial services law following Brexit. Specifically, these Regulations will restate key definitions from Commission Delegated Regulation (EU) 2017/565 (MiFID Org Regulation) into UK law, ahead of its revocation through a pending separate commencement instrument (as announced in the 2024 Mansion House speech). The MiFID Org Regulation sets out detailed organisational and conduct requirements for investment firms, including provisions on client categorisation, best execution, conflicts of interest, outsourcing and internal audit functions. These firm-facing obligations will be replaced by rules developed by the UK Financial Conduct Authority and the UK Prudential Regulation Authority, in line with the FSMA 2023 framework which delegates responsibility for detailed regulatory standards to the regulators. The draft Regulations also seek to modify definitions already within the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 to clarify terminology.

The European Securities and Markets Authority (ESMA) has published a press release sharing its view that the pre-trade controls that investment firms have implemented warrant further convergence. The EU Markets in Financial Instruments Directive (MiFID II) requires investment firms engaging in algorithmic trading to have effective systems and risk controls to ensure that its trading systems are resilient, have sufficient capacity, are subject to appropriate trading thresholds and limits, and prevent incorrect orders being sent. Those systems must also ensure that the trading systems cannot be used for market abuse or insider trading or other purposes contrary to the EU Market Abuse Regulation. Commission Delegated Regulation (EU) 2017/589 further specifies the pre-trade controls that an investment firm must have in place to meet these MiFID II requirements.

Read more.

The European Securities and Markets Authority (ESMA) has launched the first selection procedure for a consolidated tape provider (CTP) for shares and exchange-traded funds. The selection process will be guided by the regulatory technical standards adopted by the European Commission on 12 June, which will be used as the basis for the assessment of some criteria. The contract notice and procurement documents can be accessed via ESMA's EU Funding & Tenders Portal, with the deadline for participation requests being 25 July. ESMA will review the submitted requests against the exclusion and selection criteria and will invite the successful candidates to submit a formal application. ESMA aims to finalise the selection by the end of this year, with the successful applicant operating the CTP for five years under its supervision.

The European Commission has adopted a Commission Delegated Regulation to amend regulatory technical standards (RTS) on transparency requirements. The MiFIR Review revised the Markets in Financial Instruments Regulation amending the pre- and post-transparency requirements for trading venues as regards equities and non-equities. The amendments took effect on 28 March 2024. The adopted Delegated Regulation has amended two RTS supplementing the MiFIR transparency requirements.

Firstly, the adopted Delegated Regulation amends Delegated Regulation (EU) 2017/583 on transparency requirements for bonds, structured finance products (SFPs) and emission allowances by aligning the scope of the pre-transparency obligation with the MiFIR provisions, updating the transparency requirements for pre-trade transparency and recalibrating the post-trade requirements.

Secondly, the adopted Delegated Regulation amends Delegated Regulation (EU) 2017/587 on transparency requirements for equities, including shares, depositary receipts, exchange-traded funds and certificates. Among other things, the amendments set out the details of pre-trade data to be made public, set pre-trade transparency requirements for systematic internalisers and prescribe the transactions that will be exempt from the share trading obligation due to characteristics that show that the transaction is not contributing to the price discovery process.

The European Commission (EC) has adopted a suite of technical standards for the development of consolidated tapes. The creation of consolidated tapes and the removal of obstacles to the development of consolidated tapes, were a key action point following the findings of the European MiFID/MIFIR review. The changes relate to technical standards for data reporting service providers, i.e. approved publication arrangements (APAs), approved reporting mechanisms (ARMs) and consolidated tape providers (CTPs). The technical standards adopted consist of implementing technical standards and three sets of regulatory technical standards, supplementing Regulation (EU) No 600/2014 (MIFIR).

Read more.

The European Securities and Markets Authority (ESMA) has launched a call for evidence (CfE), accompanied by a press release, to gather input on the retail investor journey in capital markets under the revised EU Markets in Financial Instruments Directive (MiFID II). The CfE aims to assess whether regulatory or non-regulatory barriers may discourage retail investor participation in capital markets. The CfE considers:

• Retail market trends, including the growing appeal of speculative products among younger investors and the rising influence of social media on investment decisions.
• Specific regulatory requirements under MiFID II, such as regulatory disclosures and assessment of suitability and appropriateness, which can impact retail investors.
• Additional areas such as the investor experience under the European crowdfunding framework and broader reflections on how to achieve the right balance between investor protection and enabling informed risk-taking.

ESMA has also published a summary of the CfE to facilitate responses by consumers and related organisations. The deadline for comments to the CfE is 21 July. ESMA will use the responses to assess, in Q3 2025, whether specific clarifications or regulatory adjustments are needed.

The European Commission has published its Omnibus IV legislative proposal, together with a press release, for a Directive amending the Markets in Financial Instruments Directive II (MiFID II) and the Critical Entities Resilience Directive to simplify various administrative requirements for small mid-cap enterprises (SMCs), in line with the mitigating measures already available for SMEs. SMEs are currently defined as companies with under 250 employees and an annual turnover of up to EUR50 million or a balance sheet total up to EUR43m, while SMCs are those that have outgrown the SME definition. The proposed amendments will simplify regulatory requirements and reduce administrative burdens for SMCs, in the interests of helping them to scale up.

The legislative proposal represents the fourth Omnibus simplification package, following Omnibus I and II on the simplification of sustainability reporting and due diligence rules, and Omnibus III on the simplification of the Common Agricultural Policy. The Omnibus IV proposals include: (i) the introduction of a new category of SMCs to capture enterprises that are up to three times the size of SMEs; (ii) simplified compliance obligations for SMCs, permitting them to provide product information in digital format; (iii) common specifications for companies to demonstrate compliance with EU rules in the absence of harmonised standards; and (iv) a simplification of record-keeping requirements in the General Data Protection Regulation.

The European Commission has adopted delegated regulations amending the rules for data reporting service providers (DRSP) fines and fees to include consolidated tape providers (CTPs) in scope. Previously, the relevant requirements had only been applied to two types of DRSPs: approved publication arrangements and approved reporting mechanisms. The amendments are in line with the changes brought in as a result of the EU MiFID/MiFIR review changes which focussed on enhancing market data transparency and removing obstacles to the emergency of CTPs in the EU.

Read more.

The European Securities and Markets Authority (ESMA) has published its final report providing technical advice to the European Commission (EC) on changes made by the Listing Act to the Market Abuse Regulation (MAR) and the Markets in Financial Instruments Directive (MiFID II) in relation to small and medium enterprise (SME) growth markets. The Listing Act seeks to promote better access to public capital markets for EU companies, in particular SMEs, by simplifying requirements and reducing administrative burden. ESMA consulted on the advice in December 2024 and this final report includes feedback received in response to the consultation. Much of the MAR technical advice concerns the rules for disclosing inside information during a protracted process. It also covers the approach for identifying trading venues with a significant cross-border dimension under the new cross market order book mechanism (article 25a MAR). The MiFID technical advice concerns the category of multilateral trading facilities (MTF) labelled SME growth markets and the requirements that such an MTF (or MTF segment) must comply with under article 33 MiFID II. In giving its technical advice, ESMA suggests amendments to Commission Delegated Regulation 2017/565 (known as the MiFID Org Reg) or otherwise confirms its view where no amendments would be needed. The EC will adopt the delegated acts for which the technical advice was requested by July 2026.

The European Securities and Markets Authority (ESMA) has published its 2024 report, along with a press release, on the quality and use of data, showcasing significant increase in data use by authorities. The report covers datasets from the European Market Infrastructure Regulation (648/2012) (EMIR), the Securities Financing Transactions Regulation ((EU) 2015/2365) (SFTR), the Markets in Financial Instruments Regulation (600/2014) (MiFIR), the Securitisation Regulation (2017/2402/EU), the Alternative Investment Fund Managers Directive (2011/61/EU) (AIFMD) and the Money Market Funds Regulation ((EU) 2017/1131) (MMF Regulation). This edition also expands the scope to include the European Single Electronic Format (ESEF) data and short-selling data. The report is divided into different sections.

Read more.

The UK Prudential Regulation Authority (PRA) has published its consultation paper (CP9/25) on the Markets in Financial Instruments Directive Organisational Regulation (MiFID Org Reg). The PRA proposes to restate the current firm-facing requirements from the MiFID Org Reg into the PRA Rulebook before HM Treasury (HMT) begins the revocation of the MiFID Org Reg under the Financial Services and Markets Act 2023 (FSMA 2023), to prevent gaps from arising in the PRA's ability to enforce key components of its systems and controls requirements. The PRA's proposals aim to maintain existing firm-facing requirements without introducing new obligations. The PRA's proposals cover the following Articles of the MiFID Org Reg: (i) general organisational requirements, (ii) outsourcing, (iii) record keeping, (iv) compliance and internal audit, (v) risk management, and (vi) technical standards regulation. The PRA proposes the implementation date for the changes resulting from this consultation paper would be H2 2025. The proposed rules and guidance are set out in Appendix 1 and Appendix 2. As the PRA has not made substantive changes to the rules, the consultation period is 8 weeks and so the deadline for responses is 23 June.

The Financial Services Regulatory Initiatives Forum (the Forum) has published the Regulatory Initiatives Forum Grid (the Grid), with the UK Financial Conduct Authority (FCA) also updating its webpage. The previous Grid was due to be published in May 2024 but was postponed due to the General Election, meaning the Forum published only an interim update in October 2024.

The 2025 Grid sets out the regulatory pipeline for the next 24 months and reflects the reprioritisation that has taken place since the new government came into power. Notable initiatives include:

• motor finance commission review: the FCA intends to confirm, within six weeks of the Supreme Court's decision on past use of discretionary commission arrangements by motor finance firms, whether it will propose a redress scheme;
• liquidity risk management in funds: the FCA will consult on refined proposals regarding liquidity risk management in funds to implement FSB and IOSCO guidelines;
• Consumer Composite Investments (CCI) Regulation: the FCA published a second consultation paper on the new CCI regime on 16 April (see our update) and plans to issue a Policy Statement with final rules in late 2025;

Read more.

The European Securities and Markets Authority (ESMA) has published a final report in relation to certain changes being made as a result of the MiFID II/MiFIR review, together with an accompanying press release. The changes covered by this final report were part of the third consultation package following the MiFID II/MiFIR review, and relate to:

• A new set of implementing technical standards for investment firms notifying competent authorities when it gains the status of systematic internaliser or decides to opt-in to the systematic internaliser regime. ESMA confirmed that it is making some changes to the original proposals, including reducing the number of reporting fields in the notification template to ease the reporting burden and extending the notification period from two weeks to 20 calendar days. ESMA also confirmed it will discuss with competent authorities areas where further guidance is required.

Read more.

The European Securities and Markets Authority (ESMA) has published a final report in relation to the draft regulatory technical standards (RTS) specifying criteria for establishing and assessing the effectiveness of investment firms' order execution policies, accounting for whether the orders are executed on behalf of retail or professional clients. The report is accompanied by a press release. ESMA's mandate for developing the new RTS was included as part of the changes made to best execution requirements following the EU MiFID II/MiFIR review. During the review, areas for improvement were identified including insufficiently documented and demonstrated satisfaction of best execution processes. In addition, feedback from competent authorities and other stakeholders evidenced that further clarification of order execution policy requirements would be helpful. 

Read more.

The European Securities and Markets Authority (ESMA) has published a letter to the European Commission on the inconsistent regulation of trading of fractional shares across the EU. There has been an increase in the significance of fractional shares, which accounted for more than 10% of the total number of transactions reported in 2023-2024. However, shares and fractional shares are not uniformly defined under the Markets in Financial Instruments Directive (MiFID II) or the Markets in Financial Instruments Regulation (MiFIR), resulting in regulatory inconsistencies across the EU. ESMA states that while it has already taken action through its 2023 public statement to protect retail investors, uncertainty continues. The inconsistent treatment of fractional shares has the following key effects: (i) it impacts transparency and reporting requirements, (ii) it affects compliance with the MiFID systematic internaliser and share trading obligation rules; and (iii) it impacts the calculation of thresholds for data reporting services providers derogation criteria. ESMA believes consistent classification would help create a level playing field for firms and support retail participation in this market segment. ESMA suggests it would be beneficial to clarify that fractional shares, which replicate the key characteristics and trading environment of shares, should remain subject to the MiFIR rules for shares.

The European Securities and Markets Authority (ESMA) has published a final report setting out its technical advice to the European Commission on the amendments to the research provisions in the context of the Listing Act legislative package. The Listing Act amended the EU requirements in the Markets in Financial Instruments Directive (MiFID II) on how payments are made for investment research, enabling joint payments for execution services and research for all issuers, irrespective of the market capitalisation of the issuers covered by the research. EU firms will be permitted to choose whether to make joint or separate payments for third-party research and execution services. This follows the UK's approach which resulted in amended rules taking effect in August 2024. We discuss UK changes in our note, "UK allows bundled payments for third-party research and trading commissions." EU member states will have until 4 June 2026 to transpose the Listing Act changes to MiFID II. ESMA's advice relates to the changes to Article 13 of Commission Delegated Directive (EU) 2017/593, known as the MiFID II Delegated Directive, which sets out the conditions that firms have to meet under the regime that required unbundled payments for research. ESMA proposes that where an investment firm chooses to use a separate research payment account, most of the existing conditions should continue to apply. Where an investment firm pays jointly for execution services and research, ESMA's advice is to require those firms to enter into an agreement on joint payments that (i) prevents the investment firm from paying substantially more for the research component than would be the case if the firm paid directly for the research; and (ii) does not impede the firm's ability to comply with the best execution requirements.

The European Securities and Markets Authority (ESMA) has launched its consultation in relation to derivatives transparency, package orders, and input and output data for consolidated tape providers (CTPs). This is the fourth ESMA consultation package under the EU's MiFIR review workstream, and proposes a new standalone set of regulatory technical standards (RTS) for derivative transparency ahead of a future comprehensive recast of the current RTS on non-equity transparency (RTS 2). It also includes draft amends to the respective RTS for package orders and data for CTPs. ESMA proposes a new derivatives transparency regime as per the new scope defined by MiFIR, which was amended so that the regime applies to derivatives based on certain characteristics rather than simply delineating between those traded on- and off-venue. The consultation sets out detailed calibrations as to liquidity determination (relevant for both pre-trade transparency waivers and post-trade deferrals), and the size thresholds, and duration periods to be used for the new deferral regime. The deadline for comments is 3 July. ESMA will then publish its final report, and submit the technical standards to the European Commission in Q4.

The UK Financial Conduct Authority (FCA) has published its policy statement (PS25/2) with final rules on the classes of derivatives subject to the derivatives trading obligation (DTO) and the new framework for the exemptions for post-trade risk reduction services (PTRR) in respect of the DTO, best execution and transparency. The original DTO and PTRR proposals were consulted on in July 2024, with an earlier consultation in December 2023 including proposals in relation to post-trade transparency for derivatives.

Read more.

The European Securities and Markets Authority (ESMA) has issued a press release in preparation for the launch of a consolidated tape for bonds. The selection process for a provider is in motion and ESMA intends to decide on the selected applicant by early July, at which point data contributors should engage with the selected provider in relation to practical and technical matters. There will then be an expedited authorisation process for the selected provider, and when the application is complete, ESMA will determine whether authorisation is to be granted within three months. ESMA also acknowledges that it has the ability to grant a transition period if requested by the applicant, if needed. In terms of the current expected timeline, authorisation of the bond consolidated tape provider is expected in Q3/4, with the launch of the first selection for an equity consolidated tape provider in June, and the launch of the first selection for an over-the-counter derivatives consolidated tape provider in Q1 2026.

HM Treasury (HMT) has published a new webpage with a draft statutory instrument (SI) and policy note on the UK Markets in Financial Instruments Directive Organisational Regulation (UK MiFID Org Reg). The draft SI does not seek to make any policy changes but restates definitions from the UK MiFID Org Reg in UK domestic legislation and makes various consequential changes. The publication of the draft SI follows the UK chancellor's announcement last year of further changes to the UK wholesale markets regulatory framework, which will include the revocation of firm-facing rules within the MiFID Org Reg. These will be replaced in the UK Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) rulebooks. The deadline for comments on the draft SI is 14 April. HMT will then proceed with the restatement of UK MiFID Org Reg definitions, and the revocation of firm-facing rules, to align with the FCA and PRA implementing the new rules in H2 2025.

The UK Financial Conduct Authority (FCA) has published the findings of the multi-firm assessment of valuation practices and governance for valuing private equity, venture capital, private debt and infrastructure assets. The review covered firms managing funds or providing portfolio management and/or advisory services in the UK for private equity, venture capital, private debt and infrastructure assets. The FCA found that many firms had good practices in valuation processes, including the quality of reporting to investors, documenting valuations, using third-party valuation advisers to introduce additional independence and expertise and consistent application of established valuation methodologies.

Read more.

The European Commission has published a targeted consultation document on a review of the functioning of commodity derivatives markets (including for these purposes emissions allowances) and certain aspects relating to spot energy markets. The outcome of this consultation will feed into the Markets in Financial Instruments Directive report with a view to making the EU commodity derivatives markets more efficient and resilient.

The consultation seeks stakeholders' feedback on a broad range of issues, including: (i) data aspects relating to commodity derivatives; (ii) the ancillary activity exemption; (iii) position management and position reporting; (iv) position limits; (v) circuit breakers; and (vi) other elements stemming from the Draghi report on EU competitiveness. Responses must be submitted by 9 April.