ESMA works in the field of securities legislation and regulation to improve the functioning of financial markets in Europe, strengthening investor protection and co-operation between national competent authorities.
The idea behind ESMA is to establish an "EU-wide financial markets watchdog". One of its main tasks is to regulate credit rating agencies. In 2010 credit rating agencies were criticized for the lack of transparency in their assessments and for a possible conflict of interest. At the same time, the impact of the assigned ratings became significant for companies and banks but also states.[2]
In October 2017, ESMA organised its first conference which was held in Paris. The event examined issues critical to European financial markets and was attended by 350 participants.[3]
ESMA's product intervention measures
On 1 August 2018, the ESMA implemented modified trading restrictions concerning contracts for difference (CFDs) and spread betting for retail clients. The most significant change was that binary options will be completely banned while the CFD leverage that retail clients can trade with will be restricted to 30:1 and 2:1, depending on the volatility of the underlying asset traded.[4] These restrictions applied to traders categorized as retail investors only. Experienced traders, which fall under the category of professional clients, were excluded. This also meant that professional clients did not receive the same investor protections as retail investors.[5] The restrictions, initially imposed as a temporary measure, were renewed on 1 February 2019 for a further three-month period.[6] On 31 July 2019, the ESMA announced that it will not renew the restrictions after they expire on 1 August 2019, as all the EU member countries have managed to implement similar restrictions on national level.[7]
Questions and answers (Q&A)
To ensure the consistent day-to-day application of Union law within ESMA's remit, one of the organisations' key contributions is the production and maintenance of Q&As. To open the process, ESMA launched in February 2017 a new process allowing stakeholders to submit a Q&A. Once scrutinised, if these Q&As are selected, they are published in English on ESMA's website.[8]
^"European Securities and Markets Authority (ESMA)". Thomson Reuters Practical Law. Retrieved 29 October 2021.
^"EU plans new financial regulator for rating agencies". BBC News. 2 June 2010. Retrieved 18 April 2014.
^"Steven Maijoor on the State of European Financial Markets". www.esma.europa.eu. Retrieved 11 October 2018.
^"ESMA ADOPTS FINAL PRODUCT INTERVENTION MEASURES ON CFDS AND BINARY OPTIONS". Europa.eu. 1 June 2018. Retrieved 10 August 2018.
^"ESMA's product intervention measures in relation to CFDs and binary options offered to retail investors" (PDF). Europa.eu. 27 March 2018. Retrieved 18 August 2018.
^"ESMA to renew restrictions on CFDs for a further three months from 1 February 2019". www.esma.europa.eu. Retrieved 26 February 2019.
^"ESMA ceases renewal of product intervention measures relating to contracts for differences". www.esma.europa.eu. Retrieved 10 September 2019.
^"Questions and Answers". www.esma.europa.eu. Retrieved 13 September 2019.
External links
Official website
Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority)
January 26, 2023
european, securities, markets, authority, esma, independent, european, union, authority, located, paris, agency, overviewformed1, january, 2011, 2011, precedingcommittee, european, securities, regulators, cesr, jurisdictioneuropean, unionheadquartersparis, fra. The European Securities and Markets Authority ESMA is an independent European Union Authority located in Paris 1 European Securities and Markets AuthorityAgency overviewFormed1 January 2011 2011 01 01 PrecedingCommittee of European Securities Regulators CESR JurisdictionEuropean UnionHeadquartersParis FranceAgency executivesVerena Ross ChairpersonNatasha Cazenave Executive DirectorKey documentRegulation EU No 1095 2010Websiteesma wbr europa wbr euESMA replaced the Committee of European Securities Regulators CESR on 1 January 2011 It is one of the three new European Supervisory Authorities set up within the European System of Financial Supervisors Contents 1 Overview 1 1 ESMA s product intervention measures 1 2 Questions and answers Q amp A 2 Leadership 3 See also 4 References 5 External linksOverview EditESMA works in the field of securities legislation and regulation to improve the functioning of financial markets in Europe strengthening investor protection and co operation between national competent authorities The idea behind ESMA is to establish an EU wide financial markets watchdog One of its main tasks is to regulate credit rating agencies In 2010 credit rating agencies were criticized for the lack of transparency in their assessments and for a possible conflict of interest At the same time the impact of the assigned ratings became significant for companies and banks but also states 2 In October 2017 ESMA organised its first conference which was held in Paris The event examined issues critical to European financial markets and was attended by 350 participants 3 ESMA s product intervention measures Edit On 1 August 2018 the ESMA implemented modified trading restrictions concerning contracts for difference CFDs and spread betting for retail clients The most significant change was that binary options will be completely banned while the CFD leverage that retail clients can trade with will be restricted to 30 1 and 2 1 depending on the volatility of the underlying asset traded 4 These restrictions applied to traders categorized as retail investors only Experienced traders which fall under the category of professional clients were excluded This also meant that professional clients did not receive the same investor protections as retail investors 5 The restrictions initially imposed as a temporary measure were renewed on 1 February 2019 for a further three month period 6 On 31 July 2019 the ESMA announced that it will not renew the restrictions after they expire on 1 August 2019 as all the EU member countries have managed to implement similar restrictions on national level 7 Questions and answers Q amp A Edit To ensure the consistent day to day application of Union law within ESMA s remit one of the organisations key contributions is the production and maintenance of Q amp As To open the process ESMA launched in February 2017 a new process allowing stakeholders to submit a Q amp A Once scrutinised if these Q amp As are selected they are published in English on ESMA s website 8 Leadership EditChair Verena Ross since 1 November 2021 Anneli Tuominen interim chair 2021 Steven Maijoor 1 April 2011 31 March 2021 Vice Chair Vojtech Belling since 21 November 2022 Erik Thedeen December 2021 November 2022 Anneli Tuominen 2016 2022 Executive Director Natasha Cazenave 1 June 2021 Verena Ross 2011 2021 See also EditCapital Markets Union Banking Union MiFid II European Supervisory Authorities European Banking Authority European Insurance and Occupational Pensions AuthorityReferences Edit European Securities and Markets Authority ESMA Thomson Reuters Practical Law Retrieved 29 October 2021 EU plans new financial regulator for rating agencies BBC News 2 June 2010 Retrieved 18 April 2014 Steven Maijoor on the State of European Financial Markets www esma europa eu Retrieved 11 October 2018 ESMA ADOPTS FINAL PRODUCT INTERVENTION MEASURES ON CFDS AND BINARY OPTIONS Europa eu 1 June 2018 Retrieved 10 August 2018 ESMA s product intervention measures in relation to CFDs and binary options offered to retail investors PDF Europa eu 27 March 2018 Retrieved 18 August 2018 ESMA to renew restrictions on CFDs for a further three months from 1 February 2019 www esma europa eu Retrieved 26 February 2019 ESMA ceases renewal of product intervention measures relating to contracts for differences www esma europa eu Retrieved 10 September 2019 Questions and Answers www esma europa eu Retrieved 13 September 2019 External links EditOfficial website Regulation EU No 1095 2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority European Securities and Markets Authority Larosiere report Retrieved from https en wikipedia org w index php title European Securities and Markets Authority amp oldid 1134291476, wikipedia, wiki, book, books, library,
