The European Securities and Markets Authority (ESMA) has published its 2027 work programme, marking a shift from preparation to the delivery of several major initiatives.
Specifically, the priorities target supervision of consolidated tape providers, the transition to T+1 settlement, a review of the Emir 3 clearing reforms and four flagship simplification initiatives.
The programme is guided by ESMA’s multi-annual strategy for 2023 to 2028 and is split into three areas: growing supervisory mandates, delivering more efficient financial markets, and data and technological innovation.
Verena Ross, chair of ESMA, said: “[Next year] marks an important milestone for the Savings and Investments Union (SIU) as many of ESMA’s strategic initiatives move into the delivery phase.
“While co-legislators continue their work on the Market Integration and Supervision Package (MISP), ESMA is already advancing on key elements of the SIU agenda including initiatives to simplify the regulatory, reporting and supervisory framework. ESMA also continues to modernise the way it supervises markets through greater use of data and technology.”
Supervisory mandates
Under the programme, ESMA has confirmed that it will advance its supervision of consolidated tape providers and external reviewers of European green bonds.
Moreover, the regulatory body will also process applications from ESG rating providers and begin supervising them.
Read more: Europe’s consolidated tape: ‘It’s not going to be a revolution’
Elsewhere, ESMA’s supervisory remit will expand to cover benchmark administrators, alongside joint oversight of critical ICT third-party providers with the other European supervisory authorities under the Digital Operational Resilience Act (DORA).
In 2027, ESMA will also review the impact of the EMIR 3.0 reforms, with the aim of keeping EU clearing houses robust and reducing reliance on systemically important clearing services outside the EU. Its work with national competent authorities (NCAs) will continue, including the supervision of crypto-asset service providers under the markets in crypto-assets regulation (MiCA).
Focused on simplification
With a final agreement on MISP expected in 2027, ESMA will prepare for changes to its mandates while delivering the European single access point, the transition to T+1 settlement and support for the retail investment strategy.
Read more: Europe’s T+1 countdown: Insights from the US
Its four flagship simplification initiatives will also enter a new phase, targeting transaction reporting, funds reporting, the retail investor journey and risk-based supervision, with the aim of reducing unnecessary administrative burdens and making regulatory data more usable.
Technology is also an area of focus for the programme, andESMA is also set to expand its data platform and AI-based supervisory tools and strengthen its cybersecurity.
Crypto-assets, the impact of AI on financial markets and tokenisation will all continue to remain priorities.