European Securities and Markets Authority (ESMA) Definition

The European Securities and Markets Authority( ESMA) is an independent EU Authority that contributes to safeguarding the stability of the European Union’s financial system by enhancing the protection of investors and promoting stable and orderly financial markets.

It achieves this by assessing risks to investors, markets, and financial stability; completing a single rulebook for EU financial markets; promoting supervisory convergence, and directly supervising credit rating agencies and trade repositories.

It works closely with the other European Supervisory Authorities competent in the field of banking (EBA), and insurance and occupational pensions (EIOPA).

The three main objectives are investor protection, orderly markets, and financial stability.

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