ESMA Regulation - White Papers
White papers, green papers, annual reports and others addressing European Securities and Markets Authority regulations.
- 1 ESMA Annual Report - June 26, 2012
- 2 Guidelines on systems and controls in a highly automated trading environment for trading platforms, investment firms and competent authorities - July 2011
- 3 Committee of European Securities Regulators: Standardisation and Organised Platform Trading of OTC Derivatives
- 4 Regulation 1095/2010 - December 15, 2010
- 5 References
June 26, 2012
ESMA published its first annual report for 2011 on June 26, 2012, which covers the first year of ESMA's operations as an independent European Supervisory Authority. This 89 page report focuses on legislation, tasks and achievements made by ESMA since its creation on January 1, 2011. Some key areas covered in the report include:
- European Financial Markets Legislation: MiFID, MAD and Short-Selling
- European Investment Fund Legislation: UCITS and AIFMD
- European Market Infrastructure Regulation (EMIR)
- Promoting consistent application of International Financial Reporting Standards
- Corporate Finance: Prospectus, Transparency and Takeover Bids Directive
This paper covers the following topics:
- The background to the draft guidelines in the context of ESMA’s work on microstructural issues.
- The draft guidelines on organisational requirements which are relevant in a highly automated trading environment for electronic trading systems, fair and orderly trading and dealing with market abuse (in particular market manipulation). There are separate standards in each of these areas for trading platforms (regulated markets and multilateral trading facilities) and investment firms executing orders on behalf of clients and/or dealing on own account.
- The draft guidelines covering direct market access (DMA) and sponsored access (SA). Again, there are two separate sets of standards relating to trading platforms and investment firms.
- Seven annexes consisting of relevant MiFID regulations, cost-benefit analyses, academic evidence on high frequency trading, and related issues.
Committee of European Securities Regulators: Standardisation and Organised Platform Trading of OTC Derivatives
December 21, 2010
Note: As of January 2011, the Committee of European Securities Regulators is now the European Securities and Markets Authority.
From the white paper:
"In order to further the objectives of the G20, in relation to the promotion of an efficient and sound derivatives market, CESR considers that the current situation is unsatisfactory and proposes that steps should be taken to increase the proportion of over-the-counter (OTC) derivatives being standardised by asset class.
"CESR believes that a higher level of legal, operational and product standardisation (including increased use of electronic confirmation systems) can be achieved and would be beneficial for operational efficiency and the reduction of systemic risk. This should be achieved through the development of carefully defined industry targets, with arrangements to monitor the achievement of the targets, according to the scope and processes described below."
Regulation Establishing ESMA
December 15, 2010
Regulation 1095/2010 of the European Union was adopted on November 24, 2010, establishing ESMA as an independent regulatory agency overseeing European securities trading across all of the EU member states. The regulation outlines the specific competencies and powers that the regulatory agency was given. ESMA replaced CESR – the previous regulatory agency in charge of the European securities markets – in order to change financial supervision from a national level to a Union-encompassing network.