The European Securities and Markets Authority (ESMA) has announced an update to the volume cap system, replacing the double volume cap mechanism (DVCM) with a single volume cap mechanism (VCM) in October. The new VCM limits trading volume under the reference price waiver to 7% of the total aggregated trading volume in the EU over the last 12 months for each equity and equity-like financial instrument. If the limit is exceeded, trading venues will need to suspend the use of the waiver for the concerned instrument for three months. Trading venues must base their decision to suspend the waiver on data published by ESMA on its dedicated VCM webpage. To reduce reporting burden, VCM calculations will be based on transaction reporting data collected by National Competent Authorities (NCAs), and the DVCM reporting system will be decommissioned in January 2026. ESMA has submitted an amendment to the Regulatory Technical Standard 3 (RTS 3) to reflect these changes. The VCM switch will occur in October, regardless of whether the RTS 3 revision is in place. ESMA is preparing the new VCM data system and encourages all interested parties to prepare for the change in requirements. The first publication of the calculation results is expected on October 9, 2025.