ESMA, the EU's financial markets regulator, is consulting on a methodology for calculating market capitalization and ratios. This is mandated by the FASTER Directive, which aims to improve withholding tax relief. The FASTER Directive will subject EU member states with significant market capitalization to specific requirements. ESMA will publish annual figures starting in 2026, using these calculations. ESMA seeks a transparent and robust framework for determining market capitalization ratios across EU member states. The proposed methodology relies on MiFIR transaction data for its calculations. It outlines procedures for share prices, market capitalization at instrument and company levels, and aggregation. This methodology will help identify jurisdictions subject to FASTER's obligations, improving compliance. The process aims to reduce fraud risks and boost trust and efficiency in EU capital markets. ESMA will consider feedback by July 25, 2025 and expects to finalize the methodology in October.