Data
Data is key asset that feeds into all of ESMA’s activities and effective use of data is essential to achieving our mission. The strategic role and importance of data has evolved significantly since ESMA was established in 2011.
New legal mandates, new regulatory frameworks and the advent of new technologies – such as Big Data and Artificial Intelligence (AI) technologies – increase the ability of authorities to analyse and derive actionable insights from the data they collect. With its Data Strategy 2023-2028, ESMA aims to seize new opportunities in the regulatory and supervisory landscape and position itself as a reference point on RegTech / SupTech for NCAs, international regulatory and supervisory authorities, and the broader financial sector.
This page lists the main areas of activity and the key deliverables related to ESMA’s work on data.
In October 2022, ESMA published its new Strategy for 2023-2028, which focuses on three strategic priorities. The ESMA Data Strategy complements this Strategy by translating (its) data challenges into actionable objectives that aim to achieve the following outcomes:
- Facilitate the use of new data-related technologies
- Reduce reporting compliance costs by regulated entities
- Enable the effective use of data at both EU and national level; and
- Make data more broadly available to the public.
The ESMA Data Strategy also contributes to the Strategy on supervisory data in EU financial services, adopted by the European Commission in December 2021, that aims at modernising EU supervisory reporting in the financial sector, while minimising the reporting burden.
ESMA’s Data Strategy is the embodiment of its data vision to contribute to ESMA’s mission with high quality data and analytical information. It hinges on three drivers:
- Data efficiency: Reducing compliance costs of market participants and streamlining the use of data
- ESMA and NCA data capabilities: Sharing of information, knowledge and tools
- Data at the core of ESMA’s work: Providing evidence based on data to support ESMA decisions and activities (including outcome-driven supervision)
The Data Intelligence and Technology Department, which was established in 2023, covers the full set of competences related to the entire data lifecycle, and is responsible for the implementation of the ESMA Data Strategy through six specific data-related objectives.
Progress on its implementation will be monitored continuously to ensure that it remains aligned with and is revised according to ESMA priorities. The Annual Work Programmes will ensure yearly reassessment of the prioritised projects.
Objective A – Enhanced data hub
Enhance ESMA’s role as data hub, focusing on improved data, information accessibility, interoperability and usability, along with data harmonisation and standardisation
ESMA will continue the development of the data hub to provide, in addition to data exchange functionalities, a shared platform where stakeholders and ESMA can work on the same data in a unified manner and without duplicating it.
Objective B – Access to data of public interest
Contribute to providing relevant, useful and understandable information to the market in machine-readable form, and facilitate its use, including by retail investors
Data, provided it is made available to the general public in a user-friendly format and an easily accessible way, can also serve ESMA’s strategic priorities by enhancing transparency in the markets and reducing barriers to accessing regulatory information, thus contributing to building trust in the EU financial markets from all its participants, especially the (retail) investor community.
Objective C – Data-driven supervision
Enable cutting-edge, smart and effective data-driven supervision
Data plays an increasingly important role in ESMA’s and NCAs’ supervisory activities, with new types of data and growing volumes available to authorities. Innovative technologies also drive change when new types of activities become subject to supervision. ESMA will continue to use and make available to supervisors the necessary data, information and tools to enable data-driven supervision and harness the synergies between complementary ESMA and NCA supervisory activities.
Objective D – Thought leadership
Pursue thought leadership and collaboration on data standards, technologies, and reporting innovations
ESMA's ambition is to strengthen its role as a global thought leader in the development, coordination, implementation and promotion of international data standards and best practices. ESMA also aims to increase collaboration with NCAs and other stakeholders to explore new ways of funding and deliver joint projects for the benefit of the whole community.
Objective E – Efficient data policy
Promote efficiency, transparency, and cooperation in data policy, and reduce reporting burdens
Since its establishment, ESMA has focused on the developments related to supervisory data standardisation and has driven the evolution of reporting standards from divergent national reporting regimes to standardised across the EU reporting regimes based on common standards and messaging. Nevertheless, as evidenced by the fitness check of supervisory reporting requirements in EU financial services legislation, there is a need for further harmonisation of reporting regimes, reducing of the compliance cost by the reporting entities, increased cooperation between the authorities and increased use of modern technologies to support the reporting process.
Objective F – Systematic data use
Systematically use data for evidence-based policy development, supervision and risk assessment
Data and technology have always served as enablers to achieve ESMA’s mission. As laid out in its new Data Strategy, ESMA will take a more systematic data-driven approach to regulation, supervision and risk assessment to deliver across its strategic priorities.
