Global Overview of Regulatory Changes in Capital and Commodity Markets: February 2026

Key trends as of February 1, 2026, highlight a global push toward shorter settlement cycles like T+1 (trade date plus one business day settlement), simplification of reporting burdens, and enhanced supervision of digital assets and operational resilience under frameworks such as DORA (Digital Operational Resilience Act — rules ensuring financial entities can withstand ICT disruptions). Progress on EU’s T2S (TARGET2-Securities — a pan-European platform for settling securities transactions in central bank money) updates and international standards from IOSCO (International Organization of Securities Commissions) emphasize risk management in commodity derivatives and market integrity. These changes aim to boost efficiency, reduce systemic risks in pre-trading (e.g., market soundings — sharing material non-public information before trades), post-trading (clearing and settlement), and reporting via CSDs (Central Securities Depositories — entities holding securities and enabling book-entry transfers).

EU Overview

ESMA’s 2026 Annual Work Programme prioritizes supervisory convergence on settlement discipline reforms under CSDR (Central Securities Depositories Regulation — rules for CSDs on settlement efficiency and risk management), supporting a T+1 transition by Q4 2027, with ESMA recommending October 11, 2027, as the go-live date to align with global peers. T2S will deploy updates in June 2026 (R2026.JUN release), including ISO 20022 message alignments and new reason codes like PATD (Partial Differ — for partial settlement mismatches), enhancing STP (Straight-Through Processing — automated end-to-end transaction handling without manual steps) via Clearstream and Euroclear. ESMA updated EMIR (European Market Infrastructure Regulation — on derivatives reporting, clearing, and risk mitigation) instructions for weekly commodity derivatives reporting, effective April 1, 2026, and advances MiFID II/MiFIR reviews for transparency in commodities and systematic internalisers (SIs — firms internalizing client orders without a trading venue). DORA oversight begins fully in 2026, with joint ESA supervision of critical ICT providers; no major gating events (CSDR mechanism blocking settlements during high volatility) changes noted yet. Impacts include interoperability boosts for CCPs (Central Counterparties — entities interposing between trade parties for risk management) like Eurex Clearing and TRs (Trade Repositories — databases for derivative transactions) like REGIS-TR.

UK Overview

The FCA’s reforms under the Financial Services and Markets Act 2023 simplify commodity derivatives position limits, shifting responsibility to trading venues like LSE (London Stock Exchange) from July 6, 2026, reducing pre-trading complexity. Capital markets reforms via Public Offers and Admissions to Trading Regulations 2024 ease listings on LSE, enhancing pre-trade transparency and matched principal trading on MTFs (Multilateral Trading Facilities — non-equitable trading venues). Wholesale Markets Review consultations in 2026 target equity transparency and market risk capital simplification, impacting post-trading via LCH (clearing house) and CREST (dematerialized settlement system). T+1 settlement targeted for October 11, 2027, aligning with EU/Switzerland, with pre-settlement deadline December 31, 2026. No specific KRX-like AI monitoring, but FCA emphasizes growth-oriented deregulation.

USA Overview

The US maintains T+1 since May 28, 2024, under SEC Rule 15c6-1, with CFTC designating new DCMs (Designated Contract Markets — regulated exchanges like CME) like Xchange Alpha in February 2026, focusing on crypto perpetuals and tokenized collateral for commodities. CFTC-SEC harmonization via Project Crypto advances digital assets integration at CME and DTCC (Depository Trust & Clearing Corporation — key CSD and clearing entity), clarifying jurisdictions and reducing fragmentation. No new T+0 pushes; emphasis on risk management and onshore perpetual derivatives trading. EMIR-like reporting stable, with CFTC events on U.S. financial leadership in crypto impacting post-trading collateral rules.

Japan Overview

JPX and JSCC prepare for balancing market reforms from April 2026, improving liquidity via intraday bid info in five zones, aiding commodity pre-hedging. No T+1 shift announced; T+2 persists, with focus on SRMC (Short-Run Marginal Costs) transparency. Regulatory emphasis on operational efficiency for exchanges and clearing houses.

South Korea Overview

KRX advances AI-based market monitoring, stricter de-listing, and tech sector listings to curb unfair trading and boost competitiveness. Enhances pre-trading surveillance; no settlement cycle changes noted, maintaining T+2 via KRX Clearing.

Australia Overview

ASX’s CHESS (Clearing House Electronic Subregister System — electronic settlement for equities) remains T+2, but regulatory inquiry into resiliency drives 2026 reforms under Treasury Laws Amendment Act 2024. CPS 230 (prudential standard on operational risk) deadlines loom July 2026 for NTSPs (Non-Traditional Service Providers), impacting depositories and risk management.

China Overview

CSRC’s 2026 plan prioritizes stability, multi-tier equity reforms, and cross-border opening via QFII (Qualified Foreign Institutional Investor) expansions and futures access, curbing fraud in SZSE. No cycle shortening; focuses on governance and illegal trading prevention.

Middle East Overview

Saudi CMA amends rules effective February 1, 2026, broadening foreign access to Tadawul Main Market, deepening liquidity. UAE’s SCA rebrands to CMA via Decree-Laws, introducing resolution regimes for systemic entities, fines up to AED 200M, and modernizing DFM (Dubai Financial Market) oversight by January 2027.

Other Regions

Switzerland’s SIX SIS under FINMA supervision emphasizes FMI (Financial Market Infrastructure) resiliency; T+1 alignment eyed for 2027. Canada on T+1 since 2024; Singapore/Hong Kong explore tokenized bonds and stablecoins, with infrastructure modernization.

Global Trends

IOSCO’s revised commodity derivatives principles (updated 2024, monitored 2026) add six on data integrity, HFT (High-Frequency Trading), and disruptions, influencing exchanges like CME/Eurex. FSB/ESMA coordinate T+1 harmonization; no T+0 mandates. ESMA’s SIU supports integrated trading/post-trading.

Settlement Cycles Comparison

Legal Disclaimer: This overview provides general information based on publicly available sources as of February 1, 2026, and is not investment advice, recommendation, or endorsement. Consult qualified professionals for specific guidance; markets involve risks including capital loss. No liability for decisions based hereon.