What is the role of supra-national regulators like ESMA?

The role of supra-national regulators, such as the European Securities and Markets Authority (ESMA), is primarily to facilitate decision-making across member states. This organization aims to ensure consistent financial regulation and supervision across the European Union, which is crucial for maintaining a unified market and protecting investors. By creating frameworks and guidelines, ESMA helps harmonize the regulatory environment, enabling smoother cross-border operations and decision-making among various financial entities within different member states.

This collaborative approach aids in addressing issues that transcend national boundaries, enhancing regulatory coherence and promoting stability in the financial system. It enables regulators in different countries to work together effectively, rather than enforcing solely local regulations that might not take into account the broader impacts across the European Union. This shared framework helps mitigate risks and adapt to evolving market dynamics, ultimately fostering a transparent and efficient financial market.