ESMA Sets 2027 Agenda to Simplify and Integrate EU Capital Markets

Setting the 2027 agenda

The European Securities and Markets Authority has set out its 2027 priorities as the EU moves from designing capital market reforms to implementing them.

ESMA’s annual Work Programme places deeper market integration, regulatory simplification and expanded supervision at the centre of its agenda. The regulator will also increase its use of data, artificial intelligence and technology to oversee increasingly complex financial markets.

The programme sits within ESMA’s 2023–2028 strategy and supports the EU’s wider Savings and Investments Union, or SIU. The initiative seeks to channel European savings towards productive investment while building deeper and more competitive capital markets.

Verena Ross, Chair of ESMA, said: “2027 marks an important milestone for the Savings and Investments Union (SIU) as many of ESMA’s strategic initiatives move into the delivery phase. While co-legislators continue their work on the Market Integration and Supervision Package (MISP), ESMA is already advancing on key elements of the SIU agenda including initiatives to simplify the regulatory, reporting and supervisory framework. ESMA also continues to modernise the way it supervises markets through greater use of data and technology. This work programme reflects ESMA’s commitment to strengthening the Single Market, protecting investors and safeguarding financial stability. It enables ESMA to remain agile in the face of volatile and risky market conditions, while responding effectively to rapidly changing needs and priorities. As financial markets continue to evolve, I know that ESMA and its staff will remain focused on ensuring that EU capital markets are efficient, resilient and attractive.”

Expanding supervision

ESMA’s supervisory footprint will broaden substantially during 2027.

The regulator will advance oversight of consolidated tape providers and external reviewers of European Green Bonds. It will also process applications from ESG rating providers and begin supervising the sector.

That brings ESG data and assessments further into the EU’s regulated financial architecture. Investors and companies increasingly rely on these ratings for capital allocation, risk management and sustainability strategies.

ESMA will also adapt to expanded responsibilities for benchmark administrators.

Digital resilience is another priority. ESMA will work with other European Supervisory Authorities to oversee critical third-party ICT service providers. It will continue monitoring compliance with the Digital Operational Resilience Act, or DORA, across its supervisory responsibilities.

The regulator will also review the effects of EMIR 3 reforms on EU clearing markets. Policymakers want European clearing houses to remain resilient while reducing reliance on certain systemically important clearing services outside the bloc.

Capital market integration

Market integration will remain closely tied to the Savings and Investments Union.

ESMA expects EU co-legislators to reach a final agreement on the Market Integration and Supervision Package in 2027. The regulator will then prepare for changes to its mandates and responsibilities.

Other major projects are already moving forward. These include implementation of the European Single Access Point and Europe’s transition to T+1 securities settlement.

ESMA will also support implementation of the Retail Investment Strategy, with investor protection and accessible financial information remaining priorities.

Four simplification initiatives will advance during the year. They cover transaction reporting, funds reporting, the retail investor journey and risk-based supervision.

The goal is to reduce unnecessary administrative burdens while improving the quality and usability of regulatory data. ESMA also wants supervision to become more targeted and effective.

For financial institutions, the direction is significant. EU policymakers are seeking to simplify compliance without weakening market oversight or financial stability safeguards.

Technology and tokenisation

Technology will become more embedded in ESMA’s own supervisory model.

The authority plans to expand its Data Platform and deploy AI-based tools to support supervision. Cybersecurity capabilities will also be strengthened as financial markets become more digitally interconnected.

ESMA will continue work on crypto-assets, including supervisory convergence with national authorities overseeing crypto-asset service providers under MiCA.

Artificial intelligence’s wider impact on financial markets will receive further attention. Tokenisation will remain another priority as ESMA examines its potential role in European capital markets.

For executives and investors, the 2027 programme points to a more integrated supervisory environment across sustainability, technology and traditional financial markets. The challenge for Europe will be balancing simpler regulation with stronger oversight as it seeks deeper pools of capital and greater global competitiveness.