The European Central Bank has endorsed the European Commission’s proposal to centralize supervision of key financial market players at the EU level, shifting oversight from national authorities to the European Securities and Markets Authority (ESMA), as reported by Reuters.
The ECB supported centralized supervision across a broad range of institutions, including major trading venues, central counterparties, central securities depositories, and crypto-asset service providers. The ECB described the proposal as “an ambitious step towards deeper integration of capital markets and financial market supervision within the Union.”
However, the ECB’s support was not without conditions. It called for ESMA to be adequately staffed and resourced, urged a sequenced transition to minimize disruption, and requested a non-voting seat on ESMA’s board, with its expertise informing supervisory decisions as well as technical standards, guidelines, and recommendations.
The proposal now faces negotiation between EU governments and the European Parliament before it can become law.
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