EU securities regulator confesses: regulators struggle to find right information to their job

According to a Wall Street Journal interview with Verena Ross, executive director at ESMA, the European Union's securities regulator,

Financial regulators face the challenge of having the right resources and the right information to do their job properly.... 

"I think it is a big issue for many regulators. Having the right resources and the right information to see where the potential risks might be arising is a big challenge," ... "And this hasn't become any easier." 

Ross referred to austerity measures in several European countries, which can translate into a push for national regulators to reduce staff and find savings. 

"It is therefore important that we have the right resources, knowledge and information both at the national and European level," she said.

Regular readers know that requiring ultra transparency solves the problem of having the right resources, knowledge and information both at the national and European level for regulators.

It does this by allowing the regulators to tap into the market's analytical capabilities for free.

Market participants, including banking competitors, will use the data provided under ultra transparency to analyze each bank.  To access the results of this analysis, all the regulators have to do is ask.

Regulators can then compare what the market participants see as happening with what their own analysis shows.