market integration — market integration — The European Commission’s latest proposal aims to cut red tape and boost EU markets competitiveness, a move welcomed by the European Securities and Markets Authority (ESMA). This initiative is seen as a significant advancement towards creating deeper and more efficient capital markets across the EU.
- To further reinforce this alignment, ESMA intends to take on an enhanced role in fostering convergence for large cross-border asset management groups.
The proposal directly tackles the fragmentation caused by differing national regulations and supervisory practices among member states. By addressing these inconsistencies, the package is designed to facilitate a smoother operational landscape for market participants within the Single Market.
One of the primary goals of this legislative package is to remove barriers in trading, post-trading, and asset management. By enabling a more harmonised supervisory framework, the proposal aims to support scale, efficiency, and improved outcomes for both investors and businesses.
ESMA emphasised the importance of streamlining regulatory requirements and reducing the administrative burden on market participants. This focus on regulatory efficiency is expected to enhance the competitiveness and agility of EU capital markets, fostering an environment conducive to innovation.
A pivotal aspect of the proposal involves transferring direct supervision of significant cross-border infrastructures and crypto-asset service providers to the EU level. ESMA has expressed its readiness to assume these responsibilities, drawing on nearly 15 years of experience in supervising various segments of the capital markets.
According to ESMA, this shift represents a new supervisory model for a select part of the capital markets. The authority plans to collaborate closely with National Competent Authorities (NCAs) to develop the necessary capacity and expertise for these new responsibilities. ESMA underscored that maintaining aligned supervisory standards across the broader market, which remains under national supervision, is crucial.
To further reinforce this alignment, ESMA intends to take on an enhanced role in fostering convergence for large cross-border asset management groups.
Today’s proposal is a fundamental component of the Commission’s broader Savings and Investments Union (SIU) strategy. ESMA looks forward to collaborating with co-legislators to advance this critical initiative, contributing to the establishment of a more integrated and robust EU capital market.
