The topic and purpose ofthe project is a legal in-depth analysis of (1) selected institutional aspects ofthe new European financial market supervisory architecture and (2) with a view to its suitability to cope with the challenges of financial markets. Focus will be on whether and to what extent the design, the organisational and operational structure, tasks, powers and instruments ofthe authorities forming the European System of Financial Supervision (ESFS) and in addition the European Central Bank (E CB) are capable of responding to the challenges posed by financial globalisation and the integrated and interconnected reality of European financial markets. The analysis will be supplemented by a comparative perspective, introducing to at least one non- European institutional approach to the regulation and supervisionof financial markets. The analysis will be complemented also by an interdisciplinary approach by integrating the monetary policy perspective.