ESMA releases annual report
04 July 2018 Paris
Image: Shutterstock
The European Securities and Markets Authority (ESMA) has continued to make progress in its mission of enhancing investor protection and promoting stable and orderly financial markets, according to the authority’s annual report.
The report sets out ESMA’s objectives, activities and key achievements during the course of 2017.
In 2017, ESMA focused on delivering the implementation of Markets in Financial Instruments Directive II (MiFID II) and Markets in Financial Instruments Regulation (MiFIR), while also assessing risks in terms of data quality.
It said it also took direct supervision of credit rating agency (CRAs) and trade repositories (TRs) and their ancillary activities.
The report contains details about ESMA’s work under each of these activities, with a focus on the key achievements in each of those areas.
Steven Maijoor chairman of ESMA said: “ESMA’s supervisory convergence work addresses the fundamental question for any European supervisory authority, how to improve the functioning of the internal market, and ensure sound, effective and consistent supervision.”
He added: “Supervisory convergence implies sharing best practices and ensuring that the EU internal market works effectively, by removing barriers, creating a level-playing field and preventing regulatory arbitrage.”
Maijoor also said that in a year defined by the preparation for MiFID II and MiFIR, ESMA prioritised preparing markets and national competent authorities (NCAs) to ensure convergent supervision of MiFID II/MiFIR.
In 2017, ESMA published a variety of guidelines, questions and answers documents and opinions from its supervisory toolbox to support the correct and sound application of MiFID II/MiFIR, while supporting the implementation by nancial market participants.
Maijoor wrote that ESMA also laid the groundwork for product intervention measures regarding contracts for difference and binary options that were implemented in the first half of 2018.
He added that the vastly expanded requirements to report, collect and disclose data bring about new opportunities and challenges.
“ESMA is committed to enlarging the scope of its data management and analysis to support all of our activities,” Majoor stated.
“The approval of the Data Strategy Implementation Plan for 2018-2022 represented a significant step forward, as it envisages a more intense and efficient use of data by ESMA and the NCAs.”
2017 also saw further development and consolidation of ESMA’s single rulebook, which aims at strengthening regulation and creating a level-playing field across the EU.
ESMA finalised one of the key elements of MiFID II/ MiFIR with the delivery of the draft Technical Standard regarding the trading obligation for derivatives.
ESMA said it made concerted efforts in the development and use of supervisory tools in achieving its objectives regarding direct supervision.
Majoor said: “Looking forward to 2018, ESMA will continue to engage with CRAs and TRs regarding strategy, governance, operational matters, and preparations for when the UK leaves the EU.”
He added: “Political developments have demanded that we adequately prepare for a new relationship between the UK and EU. While it is yet unclear what shape this future relationship will take, ESMA has worked to ensure a consistent supervisory approach to safeguard investor protection, the orderly functioning of financial markets and financial stability ahead of any final agreement.”
“It is important that ESMA continues to influence and shape the global supervisory and regulatory agenda through our participation in The International Organisation of Securities Commissions (IOSCO) and the Financial Stability Board. ESMA and IOSCO joined forces in 2017 in order to prepare for general data protection regulation and to allow for a continuation of exchanges of information.”
The report sets out ESMA’s objectives, activities and key achievements during the course of 2017.
In 2017, ESMA focused on delivering the implementation of Markets in Financial Instruments Directive II (MiFID II) and Markets in Financial Instruments Regulation (MiFIR), while also assessing risks in terms of data quality.
It said it also took direct supervision of credit rating agency (CRAs) and trade repositories (TRs) and their ancillary activities.
The report contains details about ESMA’s work under each of these activities, with a focus on the key achievements in each of those areas.
Steven Maijoor chairman of ESMA said: “ESMA’s supervisory convergence work addresses the fundamental question for any European supervisory authority, how to improve the functioning of the internal market, and ensure sound, effective and consistent supervision.”
He added: “Supervisory convergence implies sharing best practices and ensuring that the EU internal market works effectively, by removing barriers, creating a level-playing field and preventing regulatory arbitrage.”
Maijoor also said that in a year defined by the preparation for MiFID II and MiFIR, ESMA prioritised preparing markets and national competent authorities (NCAs) to ensure convergent supervision of MiFID II/MiFIR.
In 2017, ESMA published a variety of guidelines, questions and answers documents and opinions from its supervisory toolbox to support the correct and sound application of MiFID II/MiFIR, while supporting the implementation by nancial market participants.
Maijoor wrote that ESMA also laid the groundwork for product intervention measures regarding contracts for difference and binary options that were implemented in the first half of 2018.
He added that the vastly expanded requirements to report, collect and disclose data bring about new opportunities and challenges.
“ESMA is committed to enlarging the scope of its data management and analysis to support all of our activities,” Majoor stated.
“The approval of the Data Strategy Implementation Plan for 2018-2022 represented a significant step forward, as it envisages a more intense and efficient use of data by ESMA and the NCAs.”
2017 also saw further development and consolidation of ESMA’s single rulebook, which aims at strengthening regulation and creating a level-playing field across the EU.
ESMA finalised one of the key elements of MiFID II/ MiFIR with the delivery of the draft Technical Standard regarding the trading obligation for derivatives.
ESMA said it made concerted efforts in the development and use of supervisory tools in achieving its objectives regarding direct supervision.
Majoor said: “Looking forward to 2018, ESMA will continue to engage with CRAs and TRs regarding strategy, governance, operational matters, and preparations for when the UK leaves the EU.”
He added: “Political developments have demanded that we adequately prepare for a new relationship between the UK and EU. While it is yet unclear what shape this future relationship will take, ESMA has worked to ensure a consistent supervisory approach to safeguard investor protection, the orderly functioning of financial markets and financial stability ahead of any final agreement.”
“It is important that ESMA continues to influence and shape the global supervisory and regulatory agenda through our participation in The International Organisation of Securities Commissions (IOSCO) and the Financial Stability Board. ESMA and IOSCO joined forces in 2017 in order to prepare for general data protection regulation and to allow for a continuation of exchanges of information.”
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