Daily · EU T+1 Settlement Countdown · October 16, 2026

Key points

EU T+1 Settlement: One Year to Deadline

ESMA has issued a call to market participants to finalise technical preparations and begin testing for the European Union's switch to T+1 settlement, which is scheduled for 11 October 2027. The regulator stated that the regulatory framework is now ready, following the publication of the relevant Regulatory Technical Standards (RTS) and ESMA Guidelines on standardised procedures and messaging protocols.

Participants are advised to assess readiness across their entire ecosystems and initiate testing as soon as possible throughout the trading and settlement chain. With one year remaining until the deadline, the focus shifts from regulatory preparation to operational implementation.

FCA Revokes LIBOR/EURIBOR Bans

The Financial Conduct Authority (FCA) has revoked the bans of Colin Bermingham, Philippe Moryoussef, Jonathan Mathew, and Christian Bittar. This action follows the Court of Appeal overturning the criminal convictions that formed the basis of the FCA's regulatory action against these individuals.

The FCA removed the associated Final Notices from its channels and stated it will take no further action against these four individuals in relation to this matter. This decision aligns with a previous move by the FCA to discontinue proceedings against Tom Hayes and revoke Carlo Palombo's ban after the Supreme Court quashed their criminal convictions.

US Market Infrastructure Updates

The SEC granted accelerated approval of a rule change filed by Cboe Exchange, Inc., permitting the listing of binary options overlying key performance indicators reported by certain issuers of stock. This expands the product set available on US options exchanges.

In related filings, the SEC published notices of immediate effectiveness for Long-Term Stock Exchange, Inc., which proposed amendments to Rule 11.270 regarding clearly erroneous executions in light of Overnight Protected Bands for 23/5 trading, and an amendment to its fee schedule to add a market maker incentive program. Additionally, the SEC approved rule changes by CME Securities Clearing Inc. amending Rule 410, Rule 101, the Capped Liquidity Facility Procedure, and the Liquidity Risk Management Policy.

Sanctions and Reporting Adjustments

OFAC published the names of one or more persons whose property has been unblocked and who have been removed from the Specially Designated Nationals and Blocked Persons List (SDN List). Switzerland also published an adjustment to the annex of its 5 January 2026 regulation on the freezing of assets related to Venezuela, requiring compliance teams to update screening lists.

In the US, the OCC, the Federal Reserve Board, and the FDIC announced they will proceed with a three-year extension of the FFIEC 101 regulatory capital reporting requirement without revision. The agencies noted that no comments were received during the public comment period that expired on 4 August 2026.

Our read

The ESMA announcement marks a critical operational milestone for EU market infrastructure, shifting the burden from regulatory anticipation to immediate technical execution. With the framework finalized, firms must now coordinate testing across the entire trading and settlement chain within a 12-month window. The FCA's revocation of LIBOR-related bans underscores the legal finality of appellate court decisions in regulatory enforcement, potentially affecting due diligence records for counterparties previously barred. Meanwhile, the expansion of binary options on US exchanges signals continued product innovation in derivatives markets, while the extension of FFIEC 101 reporting provides stability for advanced capital adequacy frameworks.

This digest was produced automatically by a large-language-model system from the regulator publications and official sources listed below; it is AI-generated content and may contain inaccuracies. It is not legal advice — verify wording and deadlines against the original documents.

Sources