European Securities and Markets Authority (ESMA)

⚠️ Webinar alert ⚠️ You want to know more about the 2024 EU #CarbonMarkets report? ESMA experts are ready with insights into the functioning of the EU Emissions Trading System #EUETS market. Register by 22 October and join us on 24 October for the presentation → https://lnkd.in/dJvCTK9F | Report → https://lnkd.in/dh9_m53Y. Sneak peak 🔎 prices in the EU ETS have declined since the beginning of 2023 🔎 emission allowance auctions remain significantly concentrated → preference by most EU ETS operators to source allowances from financial intermediaries 🔎 the vast majority of emission allowance trading in secondary markets takes place through derivatives → annual EU ETS compliance cycle where non-financial sector firms hold long positions while banks and investment firms hold short positions

#Trading | ESMA updates guidance under the #MiFIR Review with: ▪️ Updates to the Q&As on transparency and market structure issues ▪️ Manual on post-trade Transparency → https://lnkd.in/dB-PC_eX ▪️ Opinion on the assessment of pre-trade waivers → https://lnkd.in/en6d9Jn More information → https://lnkd.in/dtQGYesY

#DigitalFinanceEU | ESMA has responded to the European Commission proposal to amend #MiCA —Markets in #CryptoAssets Regulation— Regulatory Technical Standards. We acknowledge the legal limitations raised by the Commission but emphasise the importance of the policy objectives behind the initial proposal → https://lnkd.in/emZfvScC. Amendments to the MICA regulation to be considered: 👉 requiring applicant crypto-asset service providers and notifying entities to provide the results of an external cybersecurity audit 👉 including —in the assessment of the good repute of the members of the management body of applicant crypto-asset service providers— #checks regarding the absence of penalties also in areas other than commercial law, insolvency law, financial services law, anti-money laundering and counter terrorist financing, fraud or professional liability. 

Event | Full house of 400 in-person and online participants at the first 🌍 ESMA Research Conference, a day of thought-provoking presentations and engaging discussions on environmental risk and #ESG investing. The event was opened by our Natasha Cazenave, ESMA Executive Director, and the keynote speech was delivered by Carmine Di Noia, Director for Financial and Enterprise Affairs, OECD - OCDE. See details and presentations → https://lnkd.in/dJJRp4_F. Some of the takeaways 🌱 ESG investing is no longer a niche, but an essential component of the modern financial system; rapid growth and opportunities come with new challenges and risks  🌱 All the theoretical and empirical insights show how important research is for regulators, supervisors and policy makers 🌱 ESMA will continue monitoring these developments and risks going forward – possibly upgrading our ESG indicators and methods building on the academic results discussed during the conference 🙏 Thank you to all speakers and contributors from the European Commission, the European Central Bank, and the European University Institute.

🔴 Post trading | Shortening the settlement cycle in the EU will change the way in which markets function. The impacts of T+1 in terms of risk reduction, margin savings and the reduction of costs linked to the misalignment with other major jurisdictions globally, bring along important benefits for the EU Savings and Investments Union. Joint Statement by ESMA-European Commission-European Central Bank → https://lnkd.in/dWkytbBY. In addition, harmonisation, standardisation and modernisation will be needed and will require investments. The improved efficiency and resilience of post-trade processes that would be prompted by a potential move to T+1 would facilitate achieving the objective of further promoting settlement efficiency in the EU. ⚠️ It is urgent to act if the EU wants to avoid prolonging and amplifying the negative impacts of the misalignment with major jurisdictions internationally.

🎙️ #ESMA Chair, Verena Ross, today spoke about our achievements and answered questions from the Members of the Committee on Economic and Monetary Affairs. As part of ESMA’s annual accountability session with the European Parliament, she mentioned our recommendations for the effectiveness and attractiveness of EU capital markets, the extensive work on MiCA, and #SustainableFinanceEU – with the release of the Guidelines on funds’ names and the Final Report on #Greenwashing → https://lnkd.in/eg69WN9K.   👉 Don't miss the Annex to find it more about ESMA's activities → https://lnkd.in/euAkgD-5.   As Chair of the ESAs Joint Committee and second Vice-Chair of the European Systemic Risk Board, Verena Ross, also delivered a statement focused on Digital Operational Resilience #DORA and JC’s role in supporting the green transition, notably in developing Regulatory Technical Standards under the sustainable finance disclosure regulation → https://lnkd.in/egTe_pHh | Annex → https://lnkd.in/e5Cbqt8Z.

In 2023, more than 970 administrative sanctions and measures were imposed across EU Member States in financial sectors under #ESMA’s remit. The fines reached more than 71 million EUR. There is still room for more convergence between NCAs in the exercise of their sanctioning powers → https://lnkd.in/eNFcKYmx. In a nutshell: https://lnkd.in/dPDW8ZJy

🔵🎦 Creating effective and attractive EU capital markets requires improving the wider market ecosystem and putting investors and companies at the heart of it. Steps are needed to ensure capital markets can play their role in supporting the financing needs of Europe. What are ESMA's recommendations for achieving the Savings and Investment Union? → https://lnkd.in/eXbxgpeY | Factsheet → https://lnkd.in/eP7ZWnAm | Video → https://lnkd.in/dDYa_wKT. Earlier this year, ESMA published its Position Paper on “Building more effective and attractive capital markets in the EU”. The Paper includes 20 recommendations to strengthen EU capital markets and address the current needs.

📢 #EUHaveYourSay | A few days left to send your feedback on reporting requirements and governance expectations for some supervised entities. Benchmark administrators, CRAs, data reporting service providers, securitisation and trade repositories and their respective participants are invited to contribute by ⏱️ 18 October → https://lnkd.in/drF5-YbV. 1⃣ Consultation on periodic reporting sets out the information ESMA expects to receive and a timeline for supervised entities to provide the required information. 2⃣ Consultation on supervisory expectations for management bodies sets out ESMA’s supervisory expectations in relation to good practice in governance arrangements, such as on the role, operation, and effectiveness of the management bodies of the entities supervised by ESMA.

#GoodReads | Financial supervisors and authorities should start thinking about climate change impacts on investment portfolios. While investment funds’ portfolio vulnerabilities to physical risks appear limited given their ability to rebalance portfolios quickly and the short-term nature of their liabilities, some funds may still be exposed to climate physical risks. However, the assessment of portfolio exposures to the physical impacts of climate change is fraught with challenges → https://lnkd.in/dSDzDbnk. #SustainableFinanceEU This article illustrates how two different assessment methodologies and data sources can nonetheless yield some insights on climate physical risk exposures, based on an analysis of EU investment fund portfolio holdings. 🌱 the economic impact of physical climate change could vary between 4% and 18% of global gross domestic product by 2050 🌱 funds domiciled in northern Europe tend to be more exposed to companies subject to flood risks, while those domiciled in southern Europe are relatively more exposed to the consequences of water supply-and-demand imbalances