The European Securities and Markets Authority (ESMA), also known as the European Securities and Markets Authority (ESMA) in English, is a financial regulatory agency of the European Union (EU) which was created in 2011.
It is responsible for supervising the EU’s financial markets in order to protect investors and ensure the orderly functioning of the markets.
ESMA’s missions
ESMA’s mission is to: Supervise EU financial markets to ensure their transparency, efficiency and integrity; Protect investors by ensuring that investment services firms comply with EU regulations; Strengthen coordination between EU financial regulatory authorities; Contribute to the development of harmonized rules and standards for EU financial markets.
Powers of ESMA
ESMA has regulatory powers to supervise credit rating agencies, markets in financial instruments, investment firms, pension funds, issuers of securities, derivatives markets and market infrastructures.
What to remember about ESMA
Ultimately, ESMA aims to promote financial stability and ensure investor protection across the EU.
