| European Securities and Markets Authority
ESMA clarifies the treatment of settlement fails with respect to the CSDR penalty mechanism 14 March 2025 Post Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published a statement on the treatment of settlement fails with respect to the Central Securities Depositories Regulation (CSDR) penalty mechanism, following the major incident that affected TARGET Services (T2S and T2) last month. Concretely, ESMA clarifies in this statement that National Competent Authorities (NCAs) do not expect CSDs to apply cash penalties in relation to settlement fails for the days of 27 and 28 of February 2025. A major incident caused by a failure of the infrastructure component adversely affected T2S and T2 on 27 of February 2025 causing that settlement instructions, payment, ancillary system instructions or liquidity transfers between TARGET Services could not be processed for several hours. As specified in an existing CSDR Q&A, cash penalties should not be applied in situations where settlement cannot be performed for reasons that are independent from the involved participants. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu Statement on non-application of cash penalties due to major incident affecting T2S and T2
The ESAs acknowledge the European Commission's amendments to the technical standard on subcontracting under the Digital Operational Resilience Act 07 March 2025 Digital Finance and Innovation Joint Committee The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) today issued an Opinion on the European Commission’s (EC) rejection of the draft Regulatory Technical Standard (RTS) on subcontracting. The EC rejected the original draft RTS on subcontracting, which specified further elements that financial entities must determine and assess when subcontracting ICT services that support critical or important functions under the Digital Operational Resilience Act (DORA), on the grounds that certain elements exceeded the powers given to the ESAs by DORA. Today’s Opinion acknowledges the assessment performed by the EC and confirms that the amendments proposed ensure that the draft RTS is in line with the mandate set out under DORA. For this reason, the ESAs do not recommend further amendments to the RTS in addition to the ones proposed by the EC. The ESAs encourage the EC to finalise the adoption of the RTS without further delay as submitted to the ESAs. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu JC 2025 06 ESAs Opinion on the rejection of the RTS on subcontracting under DORA
ESMA publishes the results of the annual transparency calculations for equity and equity-like instruments 28 February 2025 Market data The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published the results of the annual transparency calculations for equity and equity-like instruments, which will apply from 7 April 2025. The calculations made available include: the liquidity assessment as per Articles 1 to 5 of CDR 2017/567; the determination of the most relevant market in terms of liquidity as per Article 4 of CDR 2017/587 (RTS 1); the determination of the average daily turnover relevant for the determination of the pre-trade and post-trade large in scale thresholds; the determination of the average value of the transactions and the related the standard market size; and the determination of the average daily number of transactions on the most relevant market in terms of liquidity relevant for the determination of the tick-size regime. Currently, there are 1,283 liquid shares and 1,003 liquid equity-like instruments other than shares, subject to MiFID II/MiFIR transparency requirements. Market participants are invited to monitor the release of the transparency calculations for equity and equity-like instruments on a daily basis to obtain the estimated calculations for newly traded instruments and the four-weeks calculations applicable to newly traded instruments after the first six-weeks of trading. ESMA’s annual transparency calculations are based on the data provided to Financial Instruments Transparency System (FITRS) by trading venues and approved publication arrangements in relation to the calendar year 2024. The full list of assessed equity and equity-like instruments will be available through ESMA’s FITRS in the XML files with publication date from 28 February 2025 and through the Register web interface. Next steps The transparency requirements based on the results of the annual transparency calculations published from 1 March 2025 for equity and equity-like instruments will apply from 7 April 2025 until 5 April 2026. From 6 April 2027 the next annual transparency calculations for equity and equity-like instruments, to be published by 1 March 2026, will become applicable. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu
New Q&As available 21 February 2025 Market data MiFID - Secondary Markets Trade Repositories The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, has published or updated the following Questions and Answers: European Market Infrastructure Regulation (EMIR) Assessment of significance for the purpose of the Error and Omission Notifications (2441) Reporting of Settlement Rate Options (2442) European crowdfunding service providers for business (ECSPR) Calculation of threshold in point (c) of Article 1(2) of ECSPR (2437) Crowdfunding multiple offers (2438) Markets in Financial Instruments Directive II (MiFID II) - Secondary Markets Open interest thresholds in energy derivatives (2439) ▸ Questions and Answers section
CSDR Refit: ESMA publishes a first set of technical standards to recalibrate and clarify the framework 20 February 2025 Guidelines and Technical standards Post Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is publishing today technical standards on different aspects of the Central Securities Depositories Regulation (CSDR) Refit. The rules relate to the information to be provided by European CSDs to their national competent authorities (NCAs) for the review and evaluation process, to the criteria for assessing the importance of European CSDs in a host Member State and to the information to be notified by third-country CSDs. The technical standards are set out in three separate final reports: The review and evaluation process of EU CSDs, where ESMA suggest a harmonisation of the information to be shared by CSDs for feeding the overall assessment of the competent authorities, plus a one-year implementing period for the new reporting items that will require an adaptation of the IT processes of CSDs. The criteria under which the activities of an EU CSD in a host Member State could be considered of substantial importance for the functioning of the securities markets and the protection of investors. It includes details about the data collection process for the indicators needed to assess the substantial importance of European CSDs in a host Member State. This will be the basis to determine the CSDs for which colleges of supervisors have to be established. The notifications from third country CSDs, where ESMA is proposing to streamline the information to be notified, aiming for an accurate understanding of the provision of notary, central maintenance and settlement services in the Union. The CSDR Refit aims to fine-tune and clarify the CSDR framework. All the Final Reports published today considered the input from the relevant stakeholders and the cross-cutting effort of regulatory burden reduction when possible. Next Steps The three final reports with the draft technical standards have been submitted to the European Commission (EC) for adoption. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu ESMA74-2119945925-1951 Final Report on Draft RTS on the Substantial Importance of CSDs ESMA74-2119945925-2089 Final Report on the Draft technical standards on review and evaluation under CSDR ESMA74-2119945925-2141 Final Report on the Draft RTS on the information notified by third-country CSDs
ESMA publishes latest edition of its newsletter 19 February 2025 ESMA newsletter The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published its latest edition of the Spotlight on Markets Newsletter. Your one-stop-shop in the world of EU financial markets focused in January and February on the ESMA Conference “Shaping the future of EU capital markets”. We welcomed 300 participants in person – and around 3700 online – at the event in Paris on 5 February 2025. The discussions focused on concrete ideas to make the Savings and Investments Union a reality, addressing the funding gap, and fostering a culture of retail investment. ESMA also decided how to best contribute to efficient simplification and burden reduction actions, while preserving the main objectives of financial stability, orderly markets and investor protection. In addition, we came forward with the first risk monitoring report of 2025, setting out the key risk drivers currently facing EU financial markets. ESMA found that overall risks in EU securities markets are high, and market participants should be wary of potential market corrections. ESMA, the European Commission and the European Central bank launched a new governance structure to support the transition to the T+1 settlement cycle in the European Union. The key elements of the new governance model include an Industry Committee (chaired by Giovanni Sabatini), several technical workstreams, and a Coordination Committee. We also published the report on costs and performance of EU retail investment products, showing a decline in the costs of investing in key financial products. Other publications: Common Supervisory Action with NCAs on Compliance and Internal Audit Functions Euribor Panel ESMA guidance on MiCA best practices ESMA guidance on non-MiCA compliant ARTs and EMTs EBA-ESMA Joint Report on recent developments in crypto-assets DPE regime The newsletter features a full overview of all publications, together with information on hearings and webinars. For updates, follow us on X and LinkedIn. ESMA Newsletter Newsletter January and February 2025
ESMA proposes guidelines on product supplements 18 February 2025 Prospectus The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published a Consultation Paper (CP) asking for input on Guidelines on supplements that introduce new types of securities to a base prospectus. The aim of the guidelines is to harmonise the supervision of so-called ‘product supplements’ across national competent authorities (NCAs) as approaches to supervision in this area have diverged in the past. Next steps Stakeholders are invited to send their contribution by 19 May. ESMA will publish a Final Report and Guidelines in Q4 2025. These will bring more certainty for market participants when submitting supplements with security-related information to NCAs across the EU. Further information: Dan Nacu-Manole Communications Officer press@esma.europa.eu ESMA32-1953674026-5808 Consultation Paper on the Guidelines on supplements which introduce new securities to a base prospectus Consultation on the Guidelines on supplements which introduce new securities to a base prospectus
The ESAs provide a roadmap towards the designation of CTPPs under DORA 18 February 2025 Digital Finance and Innovation Joint Committee The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) are advancing in the implementation of the pan-European oversight framework of critical ICT third-party service providers (CTPPs) with the objective to designate the CTPPs and to start the oversight engagement this year. CTPP designation and engagement To designate the CTPPs in 2025, the ESAs will perform the following steps: Collection of the Registers of Information: Competent Authorities are required to submit to the ESAs, by 30 April 2025, the Registers of Information on ICT third-party arrangements they received from financial entities. Criticality assessments: The ESAs will perform the criticality assessments mandated by DORA and notify ICT third-party service providers of their classification as critical by July 2025. This notification will start a six-week period during which ICT third-party service providers may object to the assessment with a reasoned statement and relevant supporting information. Final Designation: After the six-week period, the ESAs will designate CTPPs and start oversight engagement with them. ICT third-party service providers not designated as critical may voluntarily request to be designated as critical once the list of CTPPs is published. Details on how to request this will be provided soon. Implementation of the oversight framework and setup of the joint ESAs oversight function The ESAs have been preparing the governance, procedures and methodologies necessary to conduct oversight activities. To maximise synergies, ensure consistency in the oversight tasks and use resources efficiently, the ESAs have set up a joint DORA oversight function, led since October 2024 by a joint Director. The establishment of this function will allow the ESAs to perform their day-to-day oversight duties with an integrated approach across their sectors. Next steps To provide clarity to the market on preparatory activities, the designation process and on the ESAs’ oversight approach, the ESAs plan to organise an online workshop with ICT third-party providers in the second quarter of 2025. Further details on the exact date will be published in due course. Background The EU’s Digital Operational Resilience Act (DORA), along with the oversight framework of CTPPs, entered into application on 17 January 2025, marking a significant milestone for enhancing the digital operational resilience of the financial sector in the EU. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu
ESMA consults on the criteria for the assessment of knowledge and competence under MiCA 17 February 2025 Digital Finance and Innovation Investor protection The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today launched a consultation on the criteria for the assessment of knowledge and competence of crypto-asset service providers’ (CASPs) staff giving information or advice on crypto-assets or crypto-asset services. ESMA is seeking stakeholder inputs about, notably: the minimum requirements regarding knowledge and competence of staff providing information or advice on crypto-assets or crypto-asset services; organisational requirements of CASPs for the assessment, maintenance and updating of knowledge and competence of the staff providing information or advice. The guidelines aim to ensure staff giving information or advising on crypto-assets or crypto-asset services have a minimum level of knowledge and competence, enhancing investor protection and trust in the crypto-asset markets. Next steps ESMA will consider all comments received by 22 April 2025. Based on the input received, ESMA will prepare the final report for the subsequent submission of the guidelines to the European Commission. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu ESMA35-1872330276-2004 Consultation Paper on the Guidelines for the criteria on the assessment of knowledge and competence under the Markets in Crypto Assets Regulation (MiCA) Consultation on the Guidelines for the criteria on the assessment of knowledge and competence under MiCA
ESMA launches a Common Supervisory Action with NCAs on Compliance and Internal Audit Functions 14 February 2025 Audit Fund Management The European Securities and Markets Authority (ESMA), the EU’s securities and markets regulator launches today a Common Supervisory Action (CSA) with National Competent Authorities (NCAs) on compliance and internal audit functions of UCITS management companies and Alternative Investment Fund Managers (AIFMs) across the EU. The CSA will be conducted throughout 2025 and aims to assess to what extent UCITS management companies and AIFMs have established effective compliance and internal audit functions with the adequate staffing, authority, knowledge, and expertise to perform their duties under the AIFM and UCITS Directives. Compliance and internal audit functions are designed to ensure that the internal control mechanisms to monitor, identify, measure, and mitigate any possible risks of non-compliance with the applicable rules are in place. Therefore, ensuring that the entities have robust internal controls is crucial to avoid investor detriment and preserve financial stability. The work will be done using a common assessment framework developed by ESMA, which sets out the scope, methodology, supervisory expectations, and timeline on how to carry out a comprehensive supervisory action in a convergent manner. During the year, NCAs will share knowledge and experiences through ESMA to foster convergence in how they supervise the compliance of UCITS management companies and AIFMs with the relevant rules in the area. Next steps ESMA will publish a final report with the results of the exercise in 2026. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu
ESMA consults on amendments to settlement discipline 13 February 2025 Post Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched today a consultation on settlement discipline, with the objective of improving settlement efficiency across various areas. ESMA is consulting on a set of proposals to amend the technical standards on settlement discipline that include: reduced timeframes for allocations and confirmations, the use of electronic, machine-readable allocations and confirmations according to international standards, and the implementation of hold & release and partial settlement by all central securities depositories. ESMA also wants to gather stakeholders' views on additional measures that could potentially enhance settlement efficiency, for which there are no specific policy proposals yet. This consultation takes into account the transition to T+1 in the European Union and the legislative proposal published by the Commission on 12 February 2025. It is aligned with the roadmap outlined in ESMA’s Final Report on Shortening the Settlement Cycle. Next steps ESMA will consider the feedback to this consultation until 14 April 2025 and expects to publish a final report and submit the draft technical standards to the European Commission (EC) by October 2025. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu ESMA74-2119945925-2117 Consultation Paper on the Amendments to the RTS on Settlement Discipline Consultation on the Amendments to the RTS on Settlement Discipline
ESMA consults on revised disclosure requirements for private securitisations 13 February 2025 Market data Securitisation The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a consultation on revising the disclosure framework for private securitisations under the Securitisation Regulation (SECR). The consultation proposes a simplified disclosure template for private securitisations designed to improve proportionality in information-sharing processes while ensuring that supervisory authorities retain access to the essential data for effective oversight. The new template introduces aggregate-level reporting and streamlined requirements for transaction-specific data, reflecting the operational realities of private securitisations. The proposal of the simplified template follows ESMA’s previous consultation, where industry stakeholders called for short-term solutions to address key challenges and advocated for a simplified template for private securitisations. A summary of these responses was published in the December 2024 Feedback Statement. It also adds to the recently announced ESMA initiative on simplification and burden reduction actions, while preserving the main objectives of financial stability, orderly markets and investor protection. Next steps ESMA will consider all comments received by 31 March 2025. ESMA will work closely with the European Commission (EC) to explore whether adjustments to the technical standards, particularly regarding disclosures for private securitisations, can be implemented before the review of the regulation itself. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu ESMA12-2121844265-4462 Consultation Paper on the revision of the disclosure framework for private securitisation Consultation on the revision of the disclosure framework for private securitisation
Geopolitical and macroeconomic developments driving market uncertainty 13 February 2025 Press Releases Risk monitoring The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today publishes its first risk monitoring report of 2025, setting out the key risk drivers currently facing EU financial markets. ESMA finds that overall risks in EU securities markets are high, and market participants should be wary of potential market corrections. Verena Ross, ESMA’s Chair, said: “Financial markets remain optimistic, but recent events show that confidence is fragile, including in Europe. The evolution of economic growth, global monetary policy and geopolitics remains uncertain, and this gives rise to key risk drivers. Market participants need to keep their eyes firmly on growing risks, from possible corrections in surging markets such as cryptos, to the threat of disruption from increasingly sophisticated and frequent cyber-attacks. The difficult funding environment, particularly for equity financing, in Europe identified in the report also shows just how important it is to strengthen European capital markets.” As global financial markets continue to soar, downside risks are mounting. This is especially visible from an EU perspective where economic and political uncertainties are weighing on markets and where market-based corporate financing remains lacklustre. Contagion risk is also set to worsen given surging asset prices in a context of highly interconnected global markets. Crypto markets have recently hit record highs and continue to illustrate the growing risks from social-media-driven investing for investors with limited knowledge. More positively, credit risk should ease as lower interest rates feed through. ESMA’s report provides an update on structural developments and the status of key sectors of financial markets, during the second half of 2024. Structural developments Market-based finance: The financing of European corporates lost momentum in 2024. The market environment remains challenging, and equity issuance stayed weak overall. Corporate bond issuance fell slightly in 2H24 but remained close to historically high levels. Given the upcoming corporate bond maturity wall from 2025 to 2028, with 47% of debt maturing in this period, debt sustainability remains a risk. Sustainable finance: Uncertainty linked to the direction of global climate policy continued to grow in 2H24. A renewed need to consolidate public finances in advanced economies raised questions on government abilities to finance the transition, while slower ESG investing momentum signalled a drop in appetite for ‘green’ products. Yet, the strength of the EU green bond market, underpinned by non-financial corporate issuance, suggests a broader greening of the economy continues. Financial innovation: Crypto-asset prices boomed after the US election, with the new administration’s pro-crypto stance fuelling market optimism. Bitcoin rose 30% and meme coins, including the largest, Dogecoin, saw their values surge. Total capitalisation of crypto assets rose to EUR 3.3tn by end-2024, 27% above the historical peak of November 2021. These events prompted ESMA to renew its warning on the highly speculative nature of crypto-assets. Market monitoring Securities markets: European equity valuations declined in 4Q24, extending the divergence between EU and US equities. In the EU, considerable disparities in sectoral and country performance persisted. In fixed income markets, corporate bond spreads reached historical lows, especially in the high-yield segment. Search-for-yield behaviour and excessive risk-taking by end investors could lead to pricing misalignments and to abrupt repricing when economic conditions change. Asset management: In 2H24, EU fund asset growth was due to valuation effects, with most categories performing positively amid muted flows. Overall EU equity fund performance outperformed EU indices reflecting a growing exposure to the US. This could expose these funds to higher market risks given signs of overvaluation in US equities. Leverage remains high for hedge funds and commercial real estate fund valuation has not adjusted substantially to underlying prices. Consumers: Confidence in future market conditions was weak and sentiment in current market conditions reached a two-year low, despite improvements in the aggregate financial position of households. Consumers continued to increase their direct and indirect exposures to bonds amid higher interest rates. Average performance of retail investments also improved in 2024, with positive performance in equity, bond, alternative and mixed funds. Infrastructures and services: Cyber risks continue to grow amid geopolitical tensions. In 2H24, equity-trading volumes remained high (+23% year-on-year). Settlement failure rates decreased, continuing a positive trend observed since the implementation of CSDR in 2022. There was a small decrease in the number of outstanding credit ratings, associated with a decline in financial and particularly covered bond ratings. Further information: Dan Nacu-Manole Communications Officer press@esma.europa.eu ESMA50-524821-3584 Trends, Risks and Vulnerabilities (TRV) Report, No. 1, 2025 ESMA50-524821-3585 Trends, Risks and Vulnerabilities (TRV) Report, No. 1, 2025 - Statistical Annex ESMA50-524821-3564 Geopolitical and macroeconomic developments driving market uncertainty - Press Release
ESMA appoints Birgit Puck as new Chair of the Markets Standing Committee 12 February 2025 About ESMA Board of Supervisors The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has appointed Birgit Puck, Finanzmarktaufsicht (FMA) as a new Chair of the Markets Standing Committee. The election took place at the Board of Supervisors meeting on 11 February 2025. The list of Standing Committees’ Chairs is available here. The Standing Committees are expert groups drawn from ESMA staff and the National Competent Authorities (NCAs) for securities markets regulation in the Member States and are responsible for the development of policy in their respective areas. Further information: Solveig Kleiveland Team Leader - Communications press@esma.europa.eu
ESMA consults on CCP Authorisations, Extensions and Validations 07 February 2025 CCP The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today launched two public consultations following the review of the European Market Infrastructure Regulation (EMIR 3). ESMA is encouraging stakeholders to share their views on: the conditions for extensions of authorisation and the list of required documents and information for applications by central counterparties (CCPs) for initial authorisations and extensions, and the conditions for validations of changes to CCP’s models and parameters and the list of required documents and information for applications for validations of such changes. EMIR 3 introduces several measures to make EU clearing services and EU CCPs more efficient and competitive, notably by streamlining and shortening supervisory procedures for initial authorisations, extensions of authorisation and validations of changes to models and parameters. Next steps The deadline for responses to the consultation paper is 7 April 2025. Based on the responses received, ESMA will prepare the final report and intends to submit the final draft technical standards to the European Commission by 25 December 2025. Further information: Sarah Edwards Senior Communications Officer press@esma.europa.eu Cristina Bonillo Senior Communications Officer press@esma.europa.eu ESMA91-1505572268-4009 Consultation Paper on the Extensions of authorisation conditions and list of documents under EMIR ESMA91-1505572268-4010 Consultation Paper on the Validations of changes to models and parameters conditions and list of documents under EMIR
ESMA contributes to simplification and burden reduction 07 February 2025 Financial reporting Market data Press Releases The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, will be supporting the European Commission’s objective to simplify and reduce the reporting burden in the financial sector. The ESMA Board of Supervisors discussed in December 2024 how to best contribute to efficient simplification and burden reduction actions, while preserving the main objectives of financial stability, orderly markets and investor protection. Verena Ross, ESMA Chair, said: “At ESMA we aim to play our part in simplifying the regulatory framework and in reducing unnecessary reporting burdens where feasible. This work should not be about deregulation but about avoiding duplications and streamlining some of the reporting requirements for market participants”. “A concrete example is the proposed change related to data reporting for transparency purposes under the MiFIR regime. The reuse of already reported transaction data allows for the removal of duplicative reporting obligations and related IT-systems that have been used to make these calculations so far.” This and other future initiatives will help to reduce cost and complexity for companies, saving time that can be redirected towards other business activities. ESMA will look across its entire remit, including data, policy and supervision, to identify ways to ensure that the measures applicable to market participants are proportionate. The first areas on which ESMA has focused are the following: Transparency and volume cap regimes ESMA has introduced changes in the transparency framework under the MiFIR Review that will contribute to a significant reduction in the reporting burden for market participants. Since 2018, the transparency and volume cap regimes have relied on data reported by trading venues to ESMA specifically for these purposes. Going forward, ESMA intends to discontinue these reporting flows and instead perform the calculations relying on the transaction data that is already reported to NCAs and ESMA under Article 26 of MiFIR. ESMA will publish the calculations based on transaction data following the entry into force of the revised technical standards on equity transparency, expected by the end of 2025. Similar changes will be proposed to the technical standards on volume cap later this year. ESMA will also discontinue voluntary publication of quarterly SI calculations data from the beginning of 2025 and focus on further streamlining the relevant internal processes. Transaction reporting Other initiatives under the MiFIR Review aiming to reduce or ease the reporting burden include the consolidation and alignment of reference data for the purpose of transaction reporting and transparency and the alignment of specific requirements related to transaction data with other reporting regimes, such as EMIR. Digitalising sustainability and financial disclosure In the corporate reporting area, ESMA is currently consulting on proposals, in accordance with the European Single Electronic Format (ESEF), to digitalise sustainability disclosures in a phased way to spread the reporting burden over a number of years. The consultation also points at easing the burden associated with electronic disclosures of the notes to the financial statements. Next steps ESMA will continue to engage with its wide range of stakeholders to actively identify areas where further simplification and burden reduction could be achieved, in order to contribute to a more effective and attractive EU capital market. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu ESMA71-545613100-2696 Press Release - ESMA contributes to simplification and burden reduction
ESMA’s conference “Shaping the future of EU capital markets” results 06 February 2025 About ESMA The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator and supervisor, welcomed 300 participants in person (and around 1000 more connected online) to its key conference in Paris. During a successful day we heard keynote speeches from Maria Luís Albuquerque, Commissioner for Financial Services and the Savings and Investments Union, Jacques de Larosière, author of the Larosière report, and Verena Ross, Chair of ESMA. The conference brought together a diverse group of participants, including policymakers, journalists, regulators, and industry professionals, enriching the discussions and contributing to a comprehensive exploration of key topics. During the event, the three panels and a fireside discussion focused on: concrete ideas to make the Savings and Investments Union (SIU) a reality, addressing the funding gap, and fostering a culture of retail investment. These discussions aimed to empower EU citizens and companies to invest in the EU capital markets. The event marks ESMA’s commitment to enhancing priority areas over the coming years and generate a collective vision that can help towards the success of the SIU for both EU citizens and businesses. The keynote speeches and more information about the conference can be found here. ESMA71-1206669466-844 Verena Ross' Opening Remarks at the ESMA Conference 2025, 5 February 2025
ESMA publishes the results of the survey on legal entities identifiers 03 February 2025 Digital Finance and Innovation Market data The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today published the results of the survey conducted last October on legal entities identifiers. The survey gathered evidence on the impacts of including alternatives for reporting, disclosure or record keeping requirements. The results show: strong engagement of the industry on the topic (136 respondents), very high costs associated with gearing the reporting systems of financial firms towards additional identifiers (on average 360k Euros per firm and with a median of 40k Euros), an overwhelming preference for the Legal Entity Identifier (LEI) as the legal entity identifier for reporting (86% of respondents), and pan-EU associations making constructive suggestions to improve EUID automation and its interoperability with LEI to reduce the burden and avoid duplications. The full results can be found here while detailed results from consenting respondents can be found here. This publication aligns with ESMA’s Data Strategy 2023-2028 by focusing on consistency of data standards across the various reporting frameworks. The approach aims to promote cost-efficient reporting and to explore, with the relevant stakeholders, opportunities to reduce the reporting burden. Background The ESMA survey on legal entity identifiers was launched on 18 October 2024, following the publication of the ESAs opinion on identification of ICT third party providers in DORA. The objective of the survey was to collect feedback from market participants on the opportunities and challenges, costs and benefits, of using different identifiers (other than the LEI) in future financial reporting more broadly. Next steps ESMA will organise a follow up workshop with the respondents to the survey and other invited stakeholders to further socialise the results and discuss possible future actions. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu ESMA12-766636679-484 Overview of the Legal Identifier Survey Results LEI survey results Granular Results on the Legal Identifier Survey
ESMA provides guidance on MiCA best practices 31 January 2025 Digital Finance and Innovation Supervisory convergence The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, published today a new supervisory briefing aiming to align practices across the EU member states. The briefing, developed in close cooperation with National Competent Authorities (NCAs), promotes convergence and prevents regulatory arbitrage, providing concrete guidance about the expectations on applicant Crypto Asset Service Providers (CASPs), and on NCAs when they are processing the authorisation requests. For example, the briefing contains clear guidance on: Substance and governance and the ability of CASPs offering their service in the EU to operate autonomously and with sufficient in-country personnel. Outsourcing and the effective limits to set regarding the externalisation of functions and services. Suitability of personnel and the importance for CASPs, and particularly its executive management, to demonstrate effective technical knowledge of the crypto ecosystem. The guidance in the briefing helps NCAs, applicants and the general public to operationalise MiCA and RTS obligations into concrete controls and checks. Consequently, it serves to maintain a strong regulatory framework characterised by a consistent, effective, and forceful supervision. Next Steps NCAs are expected to apply the principles in the supervisory briefing during authorisation procedures, as well as ensure continued adherence for CASPs once they have been authorised. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu ESMA75-453128700-1263 Supervisory Briefing on the Authorisation of CASPs under MiCA
ESMA publishes data for quarterly bond liquidity assessment 31 January 2025 Market data Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published the new quarterly liquidity assessment of bonds. As indicated previously quarterly publication of systematic internalisers (SI) have been (see ESMA’s news item). Bonds quarterly liquidity assessment ESMA has published the latest quarterly liquidity assessment for bonds available for trading on EU trading venues. For this period, there are currently 1,342 liquid bonds subject to MiFID II transparency requirements. ESMA’s liquidity assessment for bonds is based on a quarterly assessment of quantitative liquidity criteria, which includes the daily average trading activity (trades and notional amount) and the percentage of days traded per quarter. ESMA updates the bond market liquidity assessments quarterly. However, additional data and corrections submitted to ESMA may result in further updates within each quarter, published in ESMA’s Financial Instruments Transparency System (FITRS), which shall be applicable the day following publication. The full list of assessed bonds is now available through FITRS in the XML files with publication date from 31 January 2024 (see here) and through the Register web interface (see here). ESMA also publishes two completeness indicators related to bond liquidity data. The transparency requirements for bonds deemed liquid today will apply from 17 February 2025 to 18 May 2025. The application dates reflect the provisions of the RTS 2 (see ESMA news item for more details). Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu
Euribor Panel to include Finland’s OP Corporate Bank and the National Bank of Greece 28 January 2025 Benchmarks Press Releases The European Securities and Markets Authority (ESMA), the Finnish Financial Supervisory Authority (FSA) and the Hellenic Capital Market Commission (HCMC) welcome the recent inclusion in the Euribor panel of OP Corporate Bank and National Bank of Greece. The two banks join the group of credit institutions that contribute to Euribor under its revised methodology, which is a substitute for the panel banks’ expert judgement. The methodology was adopted in a phased approach by all members across the Euribor panel between May and October 2024. Verena Ross, ESMA Chair, said: “We welcome the growth of the number of panel banks that contribute to Euribor under its new methodology. This development, together with the evolution to a fully transaction-based methodology, will reinforce the soundness of the Euribor benchmark, as benchmarks rooted in real market activity drive trust and transparency across the financial ecosystem.” Tero Kurenmaa, Director General of Finnish FSA, said: “For Finland, the stability of the European financial system is a priority. We welcome that OP Corporate Bank has joined the Euribor panel, bringing valuable expertise to the table." Vassiliki Lazarakou, HCMC Chair, said: “We welcome NBG’s participation in the Euribor panel of banks, which will contribute to the robustness and the representativeness of Euribor and the enhancement of the collaboration between the participating banks”. The announcement of the inclusion of the two banks was made by the European Money Markets Institute (EMMI) on 14 June 2024. ESMA continues to encourage credit institutions active in the unsecured euro money market to consider becoming members of the Euribor panel. Further information: Sarah Edwards Senior Communications Officer press@esma.europa.eu Cristina Bonillo Senior Communications Officer press@esma.europa.eu ESMA71-545613100-2698 Euribor Panel to include Finland’s OP Corporate Bank and the National Bank of Greece - Press Release
Start of DPE regime on 3 February and end of publication of Systematic Internalisers data 24 January 2025 MiFID II: Transparency Calculations and DVC Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, reminds market participants that the new regime for the reporting of Over the Counter (OTC) transactions for post-trade transparency purposes becomes fully operational on 3 February 2025. ESMA also informs stakeholders that the quarterly publication of systematic internalisers (SI) data will be discontinued with immediate effect. Following the MiFIR review, the responsibility for reporting OTC-transactions will shift from SIs to the new Designated Publishing Entities (DPEs). The old approach has led many investment firms to opt in to the status of SI to be able to report the trades for their clients. When these firms were not dealing on own account on a systematic basis this added disproportionate requirements to them. The DPE regime (see ESMA’s Public Statement) allows National Competent Authorities (NCAs) to grant the status of DPE to investment firms. DPEs, when they are party to a transaction, will need to make these transaction public through an approved publication arrangement (APA). ESMA maintains a public register of DPEs by class of financial instruments, to help market participants to identify those entities. Discontinuation of the SI quarterly calculations Following the application of the MiFID II amendments, it will no longer be necessary for ESMA to perform SI calculations from September 2025. In view of the resources needed to perform the calculations and the fact that the regime will end shortly, ESMA has decided to discontinue the voluntary publication of quarterly SI calculations data already now. This action will also reduce the administrative burden for investment firms. Consequently, the mandatory SI regime will no longer apply from 1 February 2025, and investment firms will not need to perform the SI-test. However, investment firms can continue to opt into the SI-regime. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu
New governance structure for transition to T+1 settlement cycle kicks off 22 January 2025 Post Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, the European Commission (EC) and the European Central bank (ECB) launched today a new governance structure to support the transition to the T+1 settlement cycle in the European Union. Following ESMA’s report with recommendations on the shortening of the settlement cycle, the new governance structure has been designed to oversee and manage the operational, regulatory and technological aspects of this transition. Given the high level of interconnectedness within the EU capital market, a coordinated approach across the EU, involving authorities, market participants, financial market infrastructures and investors, is desirable. The key elements of the new governance model include: An Industry Committee, composed of senior leaders and representatives from market players. The Committee will be chaired by Giovanni Sabatini. Giovanni has a long-standing experience working in securities markets both in the private and public sector. He has served as a member of the European Economic and Social Committee and held roles within IOSCO, EBF and ECSDA. Several technical workstreams, operating under the Industry Committee, focusing on the technological operational adaptations needed in the areas concerned by the transition to T+1 (i.e. trading, matching, clearing, settlement, securities financing, funding and FX, asset management, corporate events, settlement efficiency). In addition, two more general workstreams will review the scope and the legal and regulatory aspects of these adaptations. A Coordination Committee, chaired by ESMA and with representation from the EC, the ECB, ESMA and the chair of the Industry Committee. This committee will ensure coordination between the authorities and the industry, advising on challenges that may arise during the transition. Shortening the trade settlement cycle from the current T+2 framework to one business day should enable faster execution, clearing, and settlement of securities transactions, as well as international alignment, benefiting the entire EU financial ecosystem. The Commission is currently considering the merits of a legislative change mandating a potential transition to a shorter settlement cycle. Next Steps ESMA has recommended 11 October of 2027 as the optimal date for the transition to T+1 in the EU. In its Report ESMA concluded that the transition to T+1 should be implemented in phases, with key milestones including technology upgrades, stakeholder engagement and regulatory alignment. Further details regarding the governance set-up and participating organisations will be published in the coming days. Industry representatives interested in contributing to the upcoming work are advised to contact the T+1 Industry Secretariat here. The first meeting of the Coordination Committee will take place on 6 February. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu
ESMA and the European Commission publish guidance on non-MiCA compliant ARTs and EMTs (stablecoins) 17 January 2025 Digital Finance and Innovation The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, published today a statement reinforcing the position related to the offer of ARTs and EMTs (also known as stablecoins) in the EU under Market in Crypto Assets regulation (MiCA). The statement provides guidance on how and under which timeline CASPs are expected to comply with the requirements of Titles III and IV of MiCA, as clarified in the European Commission Q&A. In particular, National Competent Authorities (NCAs) are expected to ensure compliance by CASPs regarding non-compliant ARTs or EMTs as soon as possible, and no later than the end of Q1 2025. With the statement ESMA aims to facilitate coordinated actions at the national level and avoid potential disruptions. The European Commission have also delivered a Q&A, providing guidance on the obligations contained in titles III and IV of MiCA and how these obligations should apply to crypto assets service providers (CASPs). The Q&A clarifies that certain crypto-asset services may constitute an offer to the public or an admission to trading in the EU and should therefore comply with titles III and IV of MiCA. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu ESMA75-223375936-6099 Statement on the provision of certain crypto-asset services in relation to non-MiCA compliant ARTs and EMTs
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