ESMA Unveils Digital and Data Strategies to Modernise EU Market Supervision
The European Securities and Markets Authority has adopted a new Digital Strategy alongside an updated Data Strategy, setting out how technology and smarter data use will underpin the supervision of EU financial markets over the coming years.
The twin strategies signal ESMA’s intent to accelerate digital transformation across the European System of Financial Supervision (ESFS), while reducing unnecessary regulatory complexity and easing reporting burdens for market participants.
According to ESMA, the strategies are designed to support more efficient, transparent and resilient supervision at a time when financial markets are becoming increasingly data-driven and technologically complex.
Digitalisation and Simplification at the Core
The newly adopted Digital Strategy focuses on continuing ESMA’s digital transformation, with an emphasis on innovation, operational efficiency and resilience. At the identical time, the updated Data Strategy aims to better integrate data management and technology, capitalising on opportunities to simplify supervisory processes.
ESMA said the alignment of the two strategies reflects its commitment to “smarter regulation and supervision”, ensuring that digitalisation delivers practical benefits rather than additional layers of complexity.
Verena Ross, Chair of ESMA, said the authority’s approach is rooted in the growing importance of data and technology for effective oversight.
“ESMA is committed to smarter regulation and supervision, and this drives our dual focus on digitalisation and simplification,” Ross said.
“These two strategies support a digitally mature, resilient and agile authority that understands the importance of data for its community.”
She added that ESMA’s work extends beyond its own operations. “By assisting to drive the digital transformation of the European System of Financial Supervision (ESFS) we reinforce a more efficient, transparent, and for the EU.”
Takeaway
Roadmap for the Digital Strategy 2026–2028
ESMA’s Digital Strategy for 2026–2028 sets out a clear roadmap designed to strengthen the authority’s digital capabilities and improve cooperation across the ESFS.
The key objectives of the strategy include building EU-wide digital synergies, enhancing the digital capabilities of both ESMA and national competent authorities, and across supervisory activities.
Another central aim is the creation of a secure and future-ready digital ecosystem, ensuring that supervisory tools and systems can adapt to evolving market structures and emerging risks.
ESMA said the strategy reflects lessons learned from previous digital initiatives, as well as the increasing role of advanced analytics, automation and secure data-sharing in market supervision.
As financial markets continue to innovate rapidly, the regulator views digital maturity as essential to maintaining effective oversight and responding to new risks in a timely manner.
Takeaway
Updated Data Strategy Targets Burden Reduction
Alongside the digital roadmap, ESMA has updated its Data Strategy for the period 2023–2028, placing greater emphasis on reducing reporting burdens and unlocking efficiency gains.
While the core objectives of the Data Strategy remain unchanged, the update reflects changes in the technological landscape and ESMA’s wider push to simplify regulatory requirements.
New actions under the strategy include flagship initiatives aimed at streamlining supervisory reporting, particularly in relation to transaction data and the funds sector.
ESMA also plans to expand the capacity of its Data Platform to support both national and European authorities, improving data access, integration and reuse across the supervisory framework.
Another key element is the implementation of the next phases of the MiCA joint supervisory tool, which will be used to monitor Crypto-Assets regulation.
The updated strategy also confirms ESMA’s intention to finalise the development of the European Single Access Point (ESAP), a long-standing project designed to improve access to company and financial information across the EU.
Takeaway
Crypto, Data Platforms and Market Transparency
The inclusion of crypto-market monitoring tools within the updated Data Strategy highlights the growing importance of digital assets within EU supervision.
Under MiCA, ESMA is expected to play a central role in coordinating oversight of crypto-asset markets, requiring new data flows, analytics and supervisory technologies.
By integrating MiCA tools into its broader data framework, ESMA aims to avoid siloed systems and ensure that crypto supervision benefits from the identical efficiency and consistency as traditional markets.
The expansion of the ESMA Data Platform is also expected to support greater transparency and cooperation between authorities, reducing duplication and improving the quality of supervisory information.
Market participants have long argued that fragmented reporting requirements increase costs without delivering proportional supervisory benefits. ESMA said its updated approach is designed to address those concerns while maintaining robust oversight.
Takeaway
Part of a Wider Simplification Agenda
ESMA said the Digital and Data Strategies align with its broader simplification and burden reduction initiative launched last year.
That initiative aims to review how regulatory requirements are designed and implemented, with a focus on for firms while preserving supervisory effectiveness.
The regulator has increasingly emphasised that better use of data and technology can achieve both goals simultaneously, allowing supervisors to gain deeper insights with fewer, more targeted reporting demands.
By aligning its digital and data priorities, ESMA said it is viewking to ensure that innovation translates into tangible benefits for stakeholders across the EU financial system.
The authority believes this approach will create more opportunities for synergies and digital transformation across ESMA itself and the wider ESFS.
Takeaway
Towards a Unified Digital and Data Strategy
Looking ahead, ESMA said its digital and data initiatives will be guided by detailed roadmaps under each strategy.
By 2029, the authority expects to converge the Digital Strategy and Data Strategy into a single, unified framework, reflecting the increasingly inseparable nature of technology and data in market supervision.
This convergence is intended to provide greater coherence and long-term direction, ensuring that investments in systems and capabilities are aligned with supervisory objectives.
As continue to evolve, ESMA’s approach suggests a regulatory model that is more agile, technology-enabled and data-driven, with a stronger focus on efficiency and resilience.
For market participants, the success of the strategies will ultimately be measured by whether digitalisation leads to simpler reporting, clearer expectations and more consistent supervision across the EU.
