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03 December 2014

AFME proposes an agenda for capital markets union


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A central goal for CMU should be to increase the overall share of debt financing from the capital markets in Europe from the current 25% to at least 35%. This should be achieved without further reducing the ability of Europe’s banks to provide credit to the real economy.


AFME also encourage the Commission to consider setting objectives for specific product markets; for example:

  • Increasing Europe’s stock market capitalisation from around 75% of GDP currently to 100% of GDP, as the Federation of European Securities Exchanges has proposed
  • At least doubling European issuance volumes of securitisation and private placement by encouraging greater participation by both bank and non-bank investors
  • Increasing the share of capital market funding of SMEs, through both equity and debt

The AFME policy paper outlines have highlighted three complementary objectives to drive action on CMU:

  1. Developing more efficient and liquid markets for equity and debt issuance: Industry initiatives on high quality securitisation and private placement should be complemented by review of applicable regulation, especially capital requirements, as well as the Prospectus and Takeover Directives; and by review of the tax regime for SME equity.

  2. Harnessing long-term savings to promote investment: The priority reforms from an AFME perspective are to: appropriately calibrate the capital framework for institutional investors (particularly Solvency II); to achieve greater harmonisation of EU insolvency rules; to maintain an economically viable model for capital markets research; and to widen product choice for investors.

  3. Promoting open, integrated capital markets infrastructure: The priority reforms from an AFME perspective are to: achieve closer integration of clearing and settlement systems; pass a new securities law to clarify collateral ownership; remove barriers to cross-border collateral use; and ensure broad and affordable access to market data.

Full press release

Full agenda



© AFME


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