# What is ESMA?

> ESMA (European Securities and Markets Authority) is the EU's securities markets authority, which coordinates national regulators and sets common standards for products such as CFDs.

- Source: https://pipvalley.com/glossary/esma
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-03

For prop firms, ESMA is relevant mainly through its work on retail CFD and forex products, including the 2018 product intervention measures on leverage and marketing that national regulators then adopted, and through its coordination of national authorities across the EU.

Day-to-day supervision is national: CySEC in Cyprus, BaFin in Germany, AMF in France, CONSOB in Italy and others. National regulators may take different views of retail prop models and issue their own warnings.

Firms selling into the EU should check the positions of the national regulators in their main markets rather than assume a single EU rule applies.

## Why it matters

The EU is a large market for forex prop firms, and its regulators have strong views on retail trading marketing. Avoid claims that blur a simulated evaluation with a regulated trading product, watch national regulator warnings in your top countries, and take local advice before targeted campaigns.