UK listings reform, EU margin relief, and the T+1 countdown
London eases its IPO rulebook to court new listings
The FCA has finalised changes to its listing regime, removing the seven-day waiting period for connected research and simplifying how issuers and their advisers may share information during a float, effective 5 August 2026. The regulator frames the reforms as cutting execution risk and compliance cost for companies coming to market. The stated purpose is to keep the UK competitive against other global listing venues.
Implications for capital — Issuers and their sponsors face a shorter, lower-friction path to a London listing. Groups weighing where to raise public equity now have one fewer procedural hurdle on the UK side of the ledger.
Source: Financial Conduct Authority
FCA tightens scrutiny of unregulated lenders and custodians
The FCA has written to roughly 900 registered Annex 1 firms — unregulated lenders, safe-custody providers, money brokers and financial-leasing companies — asking them to evidence anti-money-laundering controls that are genuinely their own rather than inherited from a parent. Registration applications now face stricter review and longer processing times. The regulator cites financial-crime risk and lending conducted through complex structures.
Implications for capital — Arrangements that route lending or asset custody through lightly regulated UK vehicles face heavier AML review and slower onboarding. Firms transacting with such counterparties are expected to re-verify their registration status and controls.
Source: Financial Conduct Authority
Brussels moves to lift initial-margin duties for smaller derivatives users
The three European Supervisory Authorities have proposed amending the EMIR bilateral-margin framework so that counterparties below the €8bn threshold would no longer exchange initial margin on uncleared OTC derivatives. The change extends the existing exemption to cover legacy contracts, not only new trades. It is presented as simplification and alignment with the approach taken in other jurisdictions.
Implications for capital — Family offices and funds that use uncleared derivatives below the threshold would see collateral and operational burdens fall. Books above €8bn remain fully within the initial-margin regime.
The EU sets its clock for T+1 settlement in October 2027
ESMA has urged market participants to complete preparations for the EU's move from T+2 to T+1 securities settlement, scheduled for 11 October 2027, describing 2026 as a critical year and flagging a 7 December 2026 milestone for allocation and confirmation processes. The shorter cycle compresses the time between trade and settlement across the entire chain. The UK and Switzerland are aligning to the same transition date.
Implications for capital — Cross-border investors settling EU securities will need faster post-trade operations and tighter funding and FX timelines. Where settlement cycles between markets remain misaligned in the interim, globally diversified books carry more operational friction.
Source: ESMA