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