The European Commission will formally propose net month that the supervision of systemically significant clearing houses, depositaries, trading venues and crypto providers should be shifted from national regulators to the European Securities and Markets Authority, while domestic authorities would continue to oversee smaller entities. The proposals also include creation of an independent executive board for the European regulator and represent a significant increase in Emma’s responsibilities. Since its establishment in 2011, the agency has mostly set standards for national regulators to follow, with limited direct oversight of credit rating providers and trade repositories. Its US counterpart, the Securities and Exchange Commission, has a much broader remit and extensive enforcement powers. Some member states have expressed concern about surrendering national powers and about the concentration of oversight in a single agency. IT the plans are adopted, Esma or its successor would be able to grant authorisation to financial businesses to operate throughout the EU single market and would make greater use of legislation to curtail the national discretion often avail under EU Directives.

Source: Bloomberg