ESMA:European Securities and Markets Authority (ESMA) is the European OTC product-related rule maker and modifier, and is the sole authority that approves mandatory central clearing for OTC products. All derivatives contracts traded on the OTC and unregulated markets are regulated in the European Market Facilities Regulation (EMIR).

The EU financial regulatory system is the financial regulatory framework created by the EU in response to the financial crisis. The institutional structure of the financial regulatory framework created by the EU in response to the financial crisis created three new bodies: the European Banking Authority System (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA) to replace the three old bodies: the European Commission of Banking Supervision (CEBS), the European Committee of Insurance and Occupational Pensions Supervisors (CEIOPS) and the European Securities Commission (ESRC). The European Commission of Insurance and Occupational Pensions (CEIOPS) and the Committee of European Securities Regulators (CESR).

On January 1, 2011, the European Securities and Markets Authority (ESMA) formally replaced the European Securities Commission (CESR) and is headquartered in Paris. Its mission is to establish a set of EU unified capital markets regulatory rules, through effective supervision and regulation to provide protection for EU investors, and to provide a level playing field for financial institutions.

ESMA has the power to make regulations and to register transaction data. Financial institution participants are required to report to the transaction database, which should include contract participants, contract type, expiration time and notional value. For non-financial institution participants, the reports are mainly related to OTC contracts. Such reports must be completed within one business day of execution, amendment or closing.

ESMA is an independent EU Authority that contributes to safeguarding the stability of the European Union's ESMA is an independent EU Authority that contributes to safeguarding the stability of the European Union's financial system by ensuring the integrity, transparency, efficiency and orderly functioning of securities markets, as well as enhancing investor In particular, ESMA fosters supervisory convergence both amongst securities regulators, and across financial sectors by working closely with the other European Supervisory Authorities. In particular, ESMA fosters supervisory convergence both amongst securities regulators, and across financial sectors by working closely with the other European Supervisory Authorities competent in the field of banking (EBA), and insurance and occupational pensions (EIOPA).

ESMA's work on securities legislation contributes to the development of a single rule book in Europe. This serves two purposes; firstly, it ensures the consistent treatment of investors across the Union, enabling an adequate level of protection of investors Secondly, it promotes equal conditions of competition for financial service providers, as well as As part of its role in standard setting and reducing the scope of As part of its role in standard setting and reducing the scope of regulatory arbitrage, ESMA strengthens international supervisory co-operation. Where requested in European law, ESMA undertakes the supervision of certain entities with pan-European reach.

Finally, ESMA also contributes to the financial stability of the ESMA also contributes to the financial stability of the European Union, in the short, medium and long-term, through its contribution to the work of the European Systemic Risk Board, which identifies potential risks to the financial system and provides advice ESMA is also responsible for coordinating actions of securities supervisors, including the establishment of the European Systemic Risk Board, which identifies potential risks to the financial system and provides advice to diminish possible threats to the financial stability of the Union. ESMA is also responsible for coordinating actions of securities supervisors or adopting emergency measures when a crisis situation arises.