The European Securities and Markets Authority has published a speech given by its chairman, Steven Maijoor, which explains the reasons why transparency is an essential ingredient of securities regulation and why it has been considered to be the traditional solution in response to market imperfections. Mr Maijoor notes that transparency represents the first layer of securities regulation but despite the overall benefits it can bring it is not considered to be in itself a sufficient tool to preserve and guarantee conditions of good market functioning. The second layer of regulation, remaining within the scope of securities legislation, typically ranges from requirements on the internal organisation of firms to conduct of business rules.