The European Securities and Markets Authority (ESMA) Regulation is a set of rules established to enhance the protection of investors and promote stable and orderly financial markets within the European Union. It aims to ensure consistent application of financial regulations across member states, thereby fostering transparency and reducing risks in the financial system. ESMA is responsible for overseeing the implementation of these regulations, which include guidelines for financial markets, investment firms, and credit rating agencies. By providing a framework for cooperation among national regulators, ESMA helps to maintain the integrity of the financial markets and supports the smooth functioning of the single market.