The Financial Supervisory Authority (ASF) is contributing to European-level discussions on the digitalization of financial markets, supervisory convergence and the resilience of market infrastructure, as part of the meeting of the Board of Supervisors of the European Securities and Markets Authority (ESMA) taking place in Paris.
Key issues discussed by European financial market supervisors include digital finance and the implementation of the Markets in Crypto-Assets Regulation (MiCA), supervisory convergence across the European Union, post-trading market infrastructures such as central securities depositories (CSDs) and central counterparties (CCPs), as well as preparations for the transition to a T+1 settlement cycle.
“The European financial system is undergoing a profound transformation, driven both by digitalization and by the need to strengthen the resilience and integration of capital markets. Romania is actively contributing to these discussions, with a focus on ensuring that European regulatory and supervisory frameworks are applied consistently and effectively,” said Alexandru Petrescu, President of the Financial Supervisory Authority.
Particular attention was given to common criteria concerning supervisory independence and to the assessment conducted by the European Supervisory Authorities on this basis. For the ASF, these issues are particularly relevant in the context of ongoing efforts to strengthen supervisory convergence across the European Union.
“The ability of competent authorities to exercise their mandates independently, while having the necessary autonomy and adequate resources, is essential for effective and credible supervision. This is even more important in an increasingly complex and integrated European financial market,” Alexandru Petrescu stated.
The Board of Supervisors also discussed preparations for the transition to a T+1 settlement cycle, which represents a significant operational and technological undertaking for both market infrastructures and market participants.
“The transition to T+1 requires early preparation, substantial technical and operational adjustments, and close coordination between authorities and market participants. Ensuring that the necessary changes are implemented in a timely manner will be critical to achieving a smooth transition and reducing the operational risks associated with a shorter settlement cycle,” said Alexandru Petrescu.
In the area of digital finance, discussions focused on the implementation of MiCA following the end of the transitional period. Supervisors emphasized the importance of close cooperation between ESMA and national competent authorities to ensure a consistent application of the European framework for crypto-assets.
“The effective implementation of MiCA depends on strong cooperation between ESMA and national competent authorities. A convergent supervisory approach is essential to prevent regulatory arbitrage and to ensure a high level of investor protection across the European Union,” Alexandru Petrescu said.
The meeting also addressed the role of post-trading market infrastructures, including central securities depositories and central counterparties, in supporting the efficiency, resilience and integration of European capital markets.
“Robust and resilient post-trading infrastructures are a fundamental component of well-functioning capital markets. Continued cooperation and the exchange of supervisory experience at European level are essential to strengthening the resilience, competitiveness and integration of European financial markets,” Alexandru Petrescu concluded.
The ASF continues to participate actively in European supervisory dialogue, supporting efforts to promote regulatory consistency, market resilience and investor protection across the European Union.