ESMA 2021 report on European Green and Digital Capital Markets, a better regulatory framework has been reached

ESMA’s key achievements in 2021 included the recognition and tiering of third-country central counterparties (CCPs), the coordination of supervisory activity across the EU through its Union strategic supervisory priorities, and the preparation for the supervision of data reporting service providers (DRSPs), critical benchmarks and securitisation repositories.

The Annual Report also highlights the most significant elements of ESMA’s work in 2021, particularly the development of the regulatory framework for sustainable finance and the risks and opportunities arising from the digitalisation of markets especially for retail investors.  

Verena Ross, Chair, said:

“Last year was a transitional one for ESMA, marking not only its 10th anniversary and the beginning of its second decade as the EU’s securities markets regulator, but also a renewal of the organisation with a new senior management team. I take this opportunity to thank both Steven Maijoor for his work as ESMA’s first Chair and Anneli Tuominen, who acted as Interim Chair.

“Our major areas of focus in 2021 included protecting investors where their growing engagement in sustainable and digital finance risks them being subject to greenwashing and scams, ensuring effective and converged EU supervision, and to supporting the renewed focus on developing a true capital markets union.

“I would like to thank all our stakeholders for their continued support and collaboration in helping ESMA achieve its objectives.”

Natasha Cazenave, Executive Director, said:

“Last year marked ESMA’s first decade as a European Authority, providing an opportunity to reflect on the progress made since 2011 and lay the groundwork for the next decade.

“ESMA, in 2021, implemented new mandates for the supervision of securitisation repositories, critical benchmark administrators and data reporting service providers, while maintaining a strong focus on existing mandates for CRAs, trade repositories and CCPs. It also contributed to CMU initiatives and began work on key projects including, amongst others, the European Single Access Point and the consolidated tape.

“I want to thank our staff for their remarkable dedication and high-quality work and without whom none of these achievements would be possible.”

The organisation’s key achievements in 2021 related to its work on its cross-sectoral priorities:

Supporting the development of sound EU capital markets

• New supervisory responsibilities for securitisation repositories, data reporting service providers and critical benchmark administrators;
• Advisory reports on the MiFID/MiFIR, ELTIF, Short-Selling Regulation and Money Market Funds Regulation Reviews;
• Peer Reviews on CCP liquidity stress testing and NCAs supervision of cross-border activities of investment firms;
• Enforcement action against CRAs and Trade Repositories with fines of €4.3 million;
• Comprehensive assessment of Tier 2 CCPs and recognition and monitoring of Tier 1 third-country CCPs;
• Public statements on social media investment recommendations aimed at safeguarding retail investors;

Sustainable finance

• ESMA’s Sustainable Finance Roadmap 2022-24;
• Taxonomy regulation and European Union Platform on Sustainable Finance; and
• Preliminary report on the European Union carbon market;

Innovation and digitalisation

• Technical advice on the digital finance package; and
• Preparation for the distributed ledger technology pilot regime.