There is no single pan-European market for commercial paper.
ICMA has today published a white paper
on the European commercial paper and certificates of deposits markets,
detailing the structure of the markets, assessing their performance
under stress during the Covid-related turmoil of March-April 2020, and
outlining recommendations for future developments to market structure to
enhance its resilience.
There is no single pan-European market
for commercial paper. The market in Europe consists rather of the Euro
denominated commercial paper market, largely based in London, the NEU CP
market and multiple smaller domestic markets within Europe each with
its own legal framework for issuance, market structure, participants and
market dynamics. The turmoil of 2020 exposed areas where market
functioning and resilience could be improved.
The paper, which has been overseen by the newly constituted ICMA Commercial Paper (and Certificates of Deposit) Committee,
consisting of issuers, dealers, investors and financial market
infrastructures, highlights the benefits in the creation of a more
harmonised, single, multicurrency and pan-European market, consistent
with the aims of the Capital Markets Union. Measures to underpin
secondary market liquidity and resilience are also identified as key
structural enhancements.
ICMA Chief Executive Bryan Pascoe said:
“There is a clear opportunity for industry participants to work with
central banks and other regulators towards the common goal of developing
and strengthening the European short-term credit markets. ICMA looks
forward to further engagement with its members and broader market
stakeholders in this very important area.’’
ICMA
© ICMA
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