The European Securities and Markets Authority (ESMA) recently published its 2025 annual report, showcasing a year defined by enhanced supervision, regulatory simplification, and digital innovation.

The report detailed how the regulator navigated global uncertainty and discussions surrounding the Savings and Investments Union to maintain orderly and resilient capital markets.

“2025 was a pivotal year for Europe’s capital markets, with momentum shifting from policy ambition to concrete action,” stated Chair of ESMA Verena Ross.

“ESMA continued to play a central role in advancing more integrated, transparent and competitive EU markets,” added Ross.

“Throughout the year we worked with National Competent Authorities on the implementation of the Markets in Crypto-Assets Regulation and made substantial progress on our simplification and burden reduction projects,” noted Ross.

“Successful onboarding and implementation of new mandates show ESMA’s organisational capacity and readiness to adapt and deliver, despite ongoing uncertainties,” remarked Ross.

Executive Director of ESMA Natasha Cazenave highlighted the organisation’s operational successes over the past twelve months.

“In 2025, ESMA has reached important milestones, from progress on the T+1 settlement cycle to the selection of consolidated tape providers and the implementation of new regulatory frameworks including Green Bond and ESG Rating regulations,” said Cazenave.

“Welcoming the potential transformational changes currently discussed by co-legislators on the Markets Integration and Supervision Package, ESMA stands ready to take on new responsibilities and contribute to a more integrated and effective supervision in the European Union,” affirmed Cazenave.

During 2025, the authority played a key role in implementing legislative frameworks such as the Digital Operational Resilience Act and the European Market Infrastructure Regulation.

These efforts successfully advanced the authorisation of crypto-asset service providers and bolstered digital resilience throughout the financial sector.

The regulator also focused on sustainable finance by addressing greenwashing risks and implementing a supervisory framework for external reviewers under the Green Bond Regulation.

A significant portion of the work involved a risk-based supervisory approach that utilised data to ensure intelligence-led oversight of financial markets.

To reduce unnecessary burdens for market participants, the authority streamlined transaction reporting and fund reporting.

The newly launched retail investor journey initiative aims to ensure that the investment process remains transparent and that investors can access clear information.

Market transparency was further improved through the selection of the first consolidated tape providers under the Markets in Financial Instruments Regulation.

The authority also contributed to global efforts to enhance post-trade efficiency by supporting the transition to a shorter T+1 settlement cycle.

Finally, the body intensified its research into artificial intelligence, distributed ledger technology, and decentralised finance to foster innovation while maintaining strict standards for investor protection.