Esma opens up

Author: | Published: 11 Jul 2011

The European Securities and Markets Authority (Esma) came into existence on January 1 2011 amid a cloud of uncertainty and doubt from the legal community.

Many people questioned how exactly Esma planned to tackle the sheer number of priorities it set itself given its staffing, what its relationship with the European Commission was, and how it intended to develop its international credibility.

But six months in, Esma has shrugged off doubts about its capabilities, and has made strong progress on credit rating agencies and the Prospectus Directive.

However while the breadth of Esma's work has been plain to see, many in the legal community still query its powers, structure and funding arrangements. The answer to these questions may give market participants an idea of how Esma plans to tackle the regulation of complex products, for example.

Esma's views are not only important for banks and issuers – its recent announcement...