The European Securities and Markets Authority published a new edition of its Spotlight on Markets newsletter, summarising EU financial markets regulatory and supervisory developments from February and March, with a focus on its warning on the use of artificial intelligence for investing and key workstreams on securitisation and central counterparties. The newsletter highlights ESMA and national competent authorities’ Warning and coordinated EU-wide #AIInvestorAlert campaign, noting that AI tools can generate inaccurate or misleading advice that may lead to poor investment decisions and significant financial losses. On supervisory convergence, ESMA fined Modefinance €420,000 and issued a public notice for a breach of the Credit Rating Agencies Regulation. It also points to peer reviews of national competent authorities’ supervision of Simple, Transparent and Standardised securitisations and of EU central counterparties, recommendations with the European Supervisory Authorities to simplify and strengthen the securitisation framework, and a revised memorandum of understanding with the Bank of England on cooperation and information exchange for the three United Kingdom-established CCPs. Other items referenced include finalised rules on investment firms’ order execution policies, recommendations to simplify ESG disclosure rules for benchmark administrators, and publications on common enforcement priorities, consolidated tape provider clarifications for bonds, EU financial system risks and vulnerabilities, and ESMA’s public code repository.

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