In a speech, Verena Ross, Executive Director, European Securities and Markets Authority (ESMA), spoke about ESMA’s forthcoming work on the implementation of the revised Markets in Financial Instruments Directive (MiFID II) as well as ESMA’s work on the implementation
of the European Markets Infrastructure Regulation (EMIR).
MiFID II is the most significant project for ESMA in 2014 and one in which it will perform a more prominent ongoing operational role. MiFID II contains a large number of empowerments for implementing measures which ESMA must prepare and on
which it will consult the market and hold public hearings. The first discussion paper in preparation for technical standards would be released shortly.
The extended scope of the transparency requirements for non-equity instruments was discussed and Ms Ross stated her personal belief that centralisation of data at EU-level would ease accessibility and usage of this information across all European markets.
EMIR implementation had expanded ESMA’s role as a direct supervisor and work would continue towards achieving supervisory convergence in supervisory practices between member states. Ms Ross acknowledged that EMIR had been a major project for
many firms as it involved ten times more firms than MiFID reporting, with more complex products and limited preparation time. She recognised that there were are still issues to be resolved in terms of onboarding reporting entities, identification of legal
entity identifiers, ensuring harmonisation of codes and improving data quality.
To have a system of this size and complexity running smoothly and providing top quality data for supervisors at a global level would take some time she said. She expressed confidence that competent authorities were aware of the limitations and scale of the
project and confirmed that ESMA is working with them to improve their reporting quality in the shortest possible time period.
Once the regulation is operating in the single rulebook Ms Ross confirmed that the goal of ESMA is that it should be applied and supervised consistently within the single market.