Support for Unifying Capital Markets
The European Securities and Markets Authority (ESMA) has expressed strong support for the European Commission’s recent initiative aimed at unifying the capital markets across the EU. This proposed framework is designed to tackle the inconsistencies arising from varying national regulations and supervisory practices, thereby fostering a more integrated and efficient Single Market.
Creating a Seamless Operational Environment
By dismantling obstacles in trading, post-trading, and asset management areas, the new measures aim to create a seamless operational environment for market participants. This alignment is anticipated to enhance efficiency and produce favorable outcomes for both investors and businesses alike.
Streamlined Regulatory Landscape
Importantly, the proposal emphasizes the necessity for a more streamlined regulatory landscape, which would alleviate administrative burdens and nurture innovation across the industry. This strategic effort is poised to bolster the agility and competitiveness of capital markets within the EU.
Delegation of Oversight to ESMA
A notable component of this initiative is the suggested delegation of direct oversight for significant cross-border financial infrastructures and crypto-asset service providers to ESMA. With nearly 15 years of experience in supervising varied segments of the capital markets, ESMA is well-prepared to undertake these responsibilities.
The shift in supervision signifies a collaborative approach where ESMA will partner with National Competent Authorities (NCAs) to enhance their capabilities and expertise in managing these new responsibilities.
Coordination of Supervisory Standards
For the segments of the market that continue to fall under national oversight, the coordination of supervisory standards remains critical. ESMA’s role will be to promote convergence in this area, particularly for larger cross-border asset management firms.
Broader Strategy for Capital Markets
This proposal is a fundamental element of the European Commission’s broader Savings and Investments Union strategy, aimed at creating more robust and integrated EU capital markets. ESMA is eager to collaborate with legislators as they progress on this pivotal initiative.
