European Securities and Markets Authority (ESMA)

The European Securities and Markets Authority (ESMA, external link), headquartered in Paris, was established by Regulation (EU) No 1095/2010 (external link) of the European Parliament and of the Council of 24 November 2010 and commenced its operations on 1 January 2011.

The objective of ESMA is to enhance investor protection and contribute to the stability and proper functioning of financial markets. ESMA is involved in developing standards and procedures for financial market regulation and supervision, focusing on issuers of financial instruments, investors, and intermediaries, primarily through the preparation of technical standards, guidelines and recommendations. It also contributes to the consistent application of legally binding EU measures, conducts peer reviews of national supervisory practices, assesses financial market developments, and improves investor protection, particularly with regard to the risks associated with the cross-border provision of investment services. ESMA also plays a role in the functioning of supervisory colleges, the assessment of systemic risk and the development and coordination of recovery plans and resolution procedures, as well as in preparing the EU’s strategy on financial data. ESMA exercises direct supervision over credit rating agencies, trade repositories, securitisation repositories and third-country central counterparties. Its powers also include the recognition of third-country central securities depositories.

Membership in ESMA is mandatory for supervisory authorities of EU Member States. The CNB appoints a member to the ESMA Board of Supervisors and is also actively represented in ESMA’s standing committees, working groups, task forces and networks.