ESMA readying a transition year in 2020

On the 10/03/19 at 8:26AM


Fabrice Anselmi

The European regulator will have to adjust to its new direct supervision missions, particularly regarding CCPs and with a view to Brexit.

The European Securities and Markets Authority (ESMA) has released a work programme that sets its priorities for 2020. The regulator will be implementing new mandates, as its mission was modified based on a review of the European Supervisory Authorities (ESA), particularly with regard to EMIR 2.2. This new regulation steps up supervision of central counterparties (CCP) in third countries and is meant to promote greater convergence between European Union CCPs.

ESMA will also have to efficiently supervise credit rating agencies (CRA), trade repositories (TR), entities under the Securitisation Regulation and SFTR. “New responsibilities in the fields of direct supervision, supervisory convergence, investor protection, relations with third countries, sustainability and technological innovation, are, I believe, a recognition of how ESMA has met the challenges it has faced since its creation in 2011 and of its capabilities as a regulator and supervisor”, said its chair, Steven Maijoor.

The task is even more challenging with Brexit-related uncertainty, as the regulator continues to prepare for both a no-deal scenario, which would mean managing immediate risks and problems, and a scenario including an agreement.

Meanwhile, it continues to focus on supervision convergence and risk assessment, with continued special attention to implementing all of MiFID 2 and MiFIR, “performance and cost of retail investment products, while facilitating the development of its data-driven supervision”, Maijoor said. The regulator will continue to release annual statistical reports on EMIR, AIFMD and MiFID 2, along with contributions to the implementation of unified regulations for the Capital Markets Union, fintech supervision, sustainable financing, and other areas

It stresses that cooperation is needed with other ESAs in the area of risk analysis and identifying areas in which consistency of surveillance could be improved, particularly with high-quality normalised data and while stepping up the use, and quantitative analysis, of such data.

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