Looking Ahead: European Developments
BETTER DATA SHARING REGULATION
Regulation (EU) 2025/2088 of the European Parliament and of the Council of 8 October 2025 amending Regulations (EU) No 1092/2010, (EU) No 1093/2010, (EU) No 1094/2010, (EU) No 1095/2010, (EU) No 806/2014, (EU) 2021/523 and (EU) 2024/1620 as regards certain reporting requirements in the fields of financial services and investment support (the Better Data Sharing Regulation) will enter into force on 10 November 2025.
The Regulation contains amendments to the European Systemic Risk Board Regulation, the EBA Regulation, the EIOPA Regulation, the ESMA Regulation, the InvestEU Regulation and the AMLA Regulation as regards certain reporting requirements. The amendments are intended to help EU authorities to share information better and to reduce duplicative data requests to financial institutions and other market participants.
CRD - INTERNAL GOVERNANCE
The EBA’s consultation on its draft revised Guidelines on internal governance under Directive 2013/36/EU (the Capital Requirements Directive / CRD IV) closes on 7 November 2025.
The draft revised guidelines have been amended to reflect the changes brought in by CRD VI, other relevant legislation such as the Digital Operational Resilience Act (DORA) and to take account of other EBA reports and supervisory practices. The revisions specify further the requirements under Article 88(3) of CRD VI, to ensure that each member of the management body, senior manager and key function holder have a documented statement of role and duties, and that a mapping of duties of the members of the management body, senior managers and key function holders has been drawn up. They also provide specific guidance to ensure that third-country branches have a robust governance framework in place.
Press Release: The EBA consults on revised Guidelines on internal governance
Consultation Paper: Consultation Paper on draft amended Guidelines on internal governance
CAPITAL REQUIREMENTS REGULATION (CRR) – LONG AND SHORT POSITIONS
Commission Delegated Regulation (EU) 2025/1265 of 1 July 2025 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards specifying the method for identifying the main risk driver of a position and for determining whether a transaction represents a long or a short position as referred to in Articles 94(3), 273a(3) and 325a(2) will enter into force on 3 November 2025.
The CRR includes derogations for the calculation of the capital requirements for market risk and counterparty credit risk. Such derogations relate to institutions with a small trading book business (Article 94 of the CRR), the use of simplified methods for calculating the expected value of derivative transactions (Article 273a of the CRR), and the use of the simplified standardized approach for market risk (Article 325a of the CRR). The conditions for accessing such derogations depend on the size of the trading book business, the derivative business and the business subject to market risk, respectively.
To determine whether institutions are allowed to use the simplified methods for the calculation of capital requirements for market risk and counterparty credit risk, they are required to calculate the size of the on- and off-balance-sheet business. The identification of the main risk driver of a position (the risk factor of the position which is the principal determinant of its change in value) and, on that basis, the determination of whether a transaction represents a long or a short position, are fundamental for the correct calculation of the size of the business.
These regulatory technical standards (RTS) set out the methods for identifying the main risk drivers of a position and, therefore, determining whether a transaction represents a long or a short position for the purposes of the capital requirements calculations referred to above.
CAPITAL REQUIRMENTS REGULATION (CRR) - MODELS
Commission Delegated Regulation (EU) 2025/1311 of 3 July 2025 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards specifying the conditions for assessing the materiality of extensions of, and changes to, the use of alternative internal models, and changes to the subset of the modellable risk factors will enter into force on 3 November 2025.
The CRR allows institutions to calculate their own funds requirements for market risk using the alternative internal model approach (IMA), provided that permission from competent authorities (CAs) is granted. Under the CRR, material changes to the use of the IMA, the extension of the use of the IMA and material changes to the institution's choice of the subset of the modellable risk factors (MRF) require separate permission from CAs. All other changes and extensions to the use of the IMA require notification to the CAs. These RTS specify the conditions for assessing the materiality of changes and extensions to the use of alternative internal models and material changes to the subset of the MRF, so CAs and institutions can assess where permissions or notifications are required.
eIDAS REGULATION / ELECTRONIC TRANSACTIONS
Two implementing regulations and one implementing decision under the eIDAS Regulation will enter into force on 17 November 2025, with the decision applying from 29 April 2026. They deal with matters relating to the security and reliability of electronic transactions across the EU.
The first implementing regulation relates to non-qualified trust service providers, which provide trust services that facilitate secure electronic transactions. The regulation sets out reference standards, specifications and procedures for the management of risks relating to the provision of these services, for example, the requirements for risk management policies.
The second implementing regulation relates to conformity assessment bodies, which audit qualified trust service providers and the services they provide. The regulation sets out a harmonised framework for the accreditation of conformity assessment bodies, the conformity assessment schemes they implement, and the resulting conformity assessment reports.
The implementing decision relates to trusted lists, which allow a validation of the qualified status of trust service providers and of the trust services they provide. Qualified trust service providers may only begin to provide a qualified trust service after the qualified status has been indicated in the trusted lists. Commission Implementing Decision (EU) 2015/1505 lays down technical specifications and formats relating to trusted lists set out in a specified standard, and this decision amends Commission Implementing Decision (EU) 2015/1505 to update the relevant reference standard to the latest version.
- Implementing Regulation (EU) 2025/2160 of 27 October 2025 laying down rules for the application of Regulation (EU) No 910/2014 of the European Parliament and of the Council as regards reference standards, specifications and procedures for the management of risks to the provision of non-qualified trust services
- Implementing Regulation (EU) 2025/2162 of 27 October 2025 laying down rules for the application of Regulation (EU) No 910/2014 of the European Parliament and the Council as regards the accreditation of conformity assessment bodies performing the assessment of qualified trust service providers and the qualified trust services they provide, the conformity assessment report and the conformity assessment scheme
- Implementing Decision (EU) 2025/2164 of 27 October 2025 amending Implementing Decision (EU) 2015/1505 as regards the version of the standard on which the common template for the trusted lists is based
RECAST INSOLVENCY REGULATION
Regulation (EU) 2025/2073 of the European Parliament and of the Council of 8 October 2025 amending Regulation (EU) 2015/848 on insolvency proceedings to replace its Annexes A and B will enter into force on 6 November 2025. The amending regulation updates the list of recognised insolvency proceedings set out in Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (recast) to take into account various changes to national laws of Member States.
SUPERVISORY REPORTING
Regulation (EU) 2025/1958 of the ECB of 9 September 2025 amending Regulation (EU) 2015/534 on reporting of supervisory financial information will enter into force on 6 November 2025 and apply from 30 December 2025. The amending regulation will require less significant credit institutions (LSIs) to report additional data points to the ECB, which will in turn allow the ECB to foster comparability of the outcomes of the supervisory review and evaluation process (SREP) assessment.
T+1 SETTLEMENT
Regulation (EU) 2025/2075 of the European Parliament and of the Council of 8 October 2025 amending Regulation (EU) No 909/2014 as regards a shorter settlement cycle in the Union will enter into force on 3 November 2025 and apply from 11 October 2027.
The regulation shortens the settlement cycle on securities trades executed on EU trading venues from T+2 to T+1. The UK and Switzerland have committed to move to T+1 on the same date as the EU.