The European Securities and Markets Authority (ESMA) is an independent regulatory agency of the European Union (EU). Established in 2011, its primary role is to enhance investor protection and promote stable and orderly financial markets across the EU. ESMA achieves this by developing a single set of rules for financial markets and ensuring consistent application of these rules among member states. ESMA also plays a crucial role in supervising credit rating agencies and trade repositories. By monitoring risks and trends in the financial markets, ESMA aims to foster transparency and integrity, ultimately contributing to the overall stability of the EU financial system.