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The legislation gives ESMA an increased role in not only setting rules but also monitoring activity in European markets, including derivatives markets, for the first time. "Securities regulators have in the past had a strong focus on investor protection but much less of a tradition of looking at risks to stability and risks in financial markets", Mr Maijoor pointed out. ESMA will need to increase their collection of data in a broad range of areas, including derivatives, hedge funds, private equity, securities lending, and repurchase contracts, Mr Maijoor added.
"At the same time, we see governments that are in difficult budgetary conditions and national regulators with limited resources, where their budgets are stable or reducing", Mr Maijoor said. "We at ESMA are part of that issue." Mr Maijoor’s comments are his first since the passing of a series of new EU laws aimed at making banks safer and markets more transparent. "The politicians have made their decisions; it is now up to us as technicians to make sure this all works in practice", he said.
While ESMA has built up its staff from 35 to more than 180, and has devoted more people to economic analysis, it still needs more resources to "analyse fully stability risks in the financial markets", Mr Maijor warned. One other area of particular concern to Mr Maijoor is the number of banks currently participating in the Euribor interest rate panel, which has dropped from more than 40 to below 30.
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