The European Securities and Markets Authority (ESMA) has published its 2027 Annual Work Programme, marking a transition from supervisory preparation to active execution across European financial markets. Guided by its 2023–2028 multi-annual strategy, the EU regulator will advance direct oversight of sustainable finance entities, oversee digital operational resilience, and support market integration initiatives.
Expanded supervisory duties across ESG and digital markets
In 2027, ESMA will advance direct supervision of consolidated tape providers alongside external reviewers of European Green Bonds. The regulator will also process applications and initiate supervision for ESG rating providers, while adapting to broadened responsibilities regarding benchmark administrators.
Under the Digital Operational Resilience Act (DORA), ESMA will undertake oversight activities for Critical ICT Third-Party Service Providers in coordination with other European Supervisory Authorities. Operational resilience monitoring will continue across all supervisory mandates. Furthermore, direct oversight convergence will focus on crypto-asset service providers (CASPs) under the Markets in Crypto-Assets (MiCA) framework in close cooperation with National Competent Authorities.
Clearing resilience, market infrastructure and investor protection
ESMA plans to review the impact of recent EMIR 3 clearing market reforms to strengthen central counterparties in the EU and lower dependency on systemically significant clearing services based outside the bloc.
Following expected agreement by co-legislators on the MISP proposal in 2027, ESMA will prepare for associated mandate adjustments. Additional workstreams supporting market infrastructure include implementing the European Single Access Point (ESAP), preparing for the T+1 settlement cycle transition, and advancing investor protection measures tied to the Retail Investment Strategy.
Administrative simplification and technological supervisory tools
The authority will enter a new phase across four core simplification programmes focusing on transaction reporting, funds reporting, the retail investor journey, and risk-based supervision. These measures aim to eliminate unnecessary administrative steps and enhance data usability.
To modernize supervisory processes, ESMA will expand its Data Platform and deploy artificial intelligence tools. Technical priorities for 2027 also cover strengthening cybersecurity standards, evaluating the market implications of artificial intelligence, and expanding supervisory engagement with tokenisation opportunities.
