ICMA publishes preliminary thoughts on EC's CMU package
29 November 2021
The International Capital Market Association (ICMA) welcomes the concrete steps that have been taken towards enhancing Europe’s capital markets in the European Commission’s recent Capital Markets Union Package. ICMA outlined its preliminary thoughts on the Package in a publication today.
Resilient
and well-functioning bond markets are critical to funding sustainable
economic growth and development in the EU and beyond. ICMA is
particularly pleased to see progress on some of the key points it raised
previously that are crucial to supporting the further development of
the cross-border bond market. This includes:
- suggested amendments to MIFIR facilitating the emergence of one consolidated tape for each asset class including bonds;
- amendments to the MiFIR bond transparency regime that mean liquidity
and investment grade (IG) or high yield (HY) classification would be
taken into account when deferrals are determined;
- the removal of the MiFID II Article 27(3) best execution reporting requirement;
- the ESAP proposals demonstrating progress towards a truly integrated
European platform for companies’ public financial and non-financial
documents; and
- the proposed review of the ELTIF Regulation to strengthen the role of securitisation.
Within these proposals, there are some points that ICMA considers
require further consideration, in particular the calibration of the
MiFIR transparency regime. In relation to the AIFMD Review, ICMA’s
buy-side community is concerned by certain aspects of the proposals and
considers it to be important that improvements that may result from the
ELTIF Regulation Review are not outweighed by changes that may be made
under the AIFMD Review.
publication
ICMA
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