Global Trustee and Fiduciary Services Bite-Sized Issue 3 | 2026

5 QUICK LINKS AI DIGITAL ASSETS EMIR FINTECH FSB IOSCO MIFID II/MIFIR SUSTAINABLE FINANCE/ESG ASIA PACIFIC EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 3 | 2026 FSB FSBWarns of Financial Stability Challenges in Repo Markets On 4 February 2026, the FSB published a report on ‘Vulnerabilities in Government Bond-backed Repo Markets.’ The FSB says that the report focuses on the repo markets backed by government bond collateral as this makes up most of the collateral used by market participants. The report highlights how quickly repo markets were impacted in several recent episodes of market stress and warns that, given the importance of repo markets within the global financial system, it is critical to preserve their functionality, particularly during periods of stress. The FSB says that the report identifies several vulnerabilities within repo markets that could pose risks to the broader financial system: • Firstly, repo markets can facilitate the build-up of leverage in the financial system; • Secondly, demand and supply imbalances can arise quickly in periods of stress if repo lenders are unwilling or unable to provide funds to meet spikes in the demand for liquidity; and • Thirdly, repo markets are highly concentrated along various dimensions. This concentration could lead to disruptions in the event of failures. The FSB explains that the core nature of repo markets may act as a conduit through several channels in spreading shocks across the financial system and that strains in repo and government bond markets may spill over into each other or across multiple jurisdictions, given the international nature of repo markets. The report outlines several measures for authorities to consider in response to these vulnerabilities, including closing data gaps, strengthening surveillance capabilities, and addressing vulnerabilities related to liquidity imbalances and leverage by taking into account the FSB’s recommendations on leverage in nonbank financial intermediation (NBFI) and Global Securities Financing Transactions exercise, as well as other relevant international standards. Link to Report here FSB Publishes its Work Programme for 2026 On 3 February 2026, the FSB published its 2026 work programme, which it says reflects the FSB’s commitment to fostering global financial vulnerabilities by addressing systemic risks, modernising financial regulation, and enhancing resilience in an evolving economic and financial environment. In 2026, the FSB says that it will continue its mission to promote global financial stability by addressing systemic financial risks and fostering international cooperation. The work programme outlines key priorities, including: • Vulnerabilities assessments; • Nonbank financial intermediation (NBFI); • Cross-border payments; • Digital innovation and Artificial Intelligence; • Operational resilience through public-private-sector collaboration; • Modernisation of financial regulation and supervision; • Crisis preparedness and resolution frameworks; and • Monitoring implementation of agreed reforms. Link to FSBWork Programme for 2026 here