The European Securities and Markets Authority (ESMA) can envisage extending its area of responsibilities. At the recent presentation of a position paper, ESMA Chair Verena Ross called on EU legislators to explore the possibility of entrusting the Paris-based authority with the direct supervision of large pan-European market infrastructures, or providers of crypto assets.

When asked, Verena Ross named clearing houses, central securities depositories, trading platforms and providers of crypto-assets as conceivable examples. EU legislators' deliberations on making these infrastructures directly subject to European supervision should be based on the extent to which these companies operate across borders, and throughout Europe. The risk of regulatory arbitrage and potential efficiency gains at EU level are also relevant issues in this regard, according to the ESMA paper.

There is currently a discussion in the Eurogroup about developing ESMA into a kind of European Securities and Exchange Commission, and giving it additional responsibilities. France in particular is considered to be in favour of such a move. For its part, ESMA is prepared to take on the role of a „gatekeeper to the capital markets“, according to the position paper.

With regard to European financial markets legislation, Verena Ross spoke in favour of a more principles-based approach. EU framework legislation should focus on important strategic and political decisions, while the technical work should be delegated to ESMA. And ESMA's powers should be strengthened. The authority should be authorised to propose modifications to certain technical regulations.

In order to ensure the most consistent rules possible, ESMA is also in favour of EU legislators opting more frequently for Regulations, and less frequently for Directives. Regulations are directly applicable laws, whereas Directives must be implemented by national legislators. This creates room for discretion. Finally, also with the aim of greater consistency, ESMA is in favour of national authorities working together more often in supervisory colleges, particularly when supervising large market participants.