EFAMA welcomes the launch by the European Commission of a public consultation to seek views on remaining barriers in post-trade markets in the context of the Capital Market Union.
EFAMA supports initiatives aiming to address and remove remaining barriers in post-trade markets, and as a member of the European Post Trade Forum (EPTF), has been a key contributor to the drafting of the recent EPTF report.
The EPTF was conceived with a view to supporting the work of the European Commission in reviewing the developments in post-trading, including collateral management services. The new EPTF report identifies barriers which have not yet been dismantled, as well as new barriers and bottlenecks which need addressing in order to promote a post trade services capital markets union in the EU.
The EPTF report notably concludes that the following barriers should be given the highest priority for resolution:
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Inefficient withholding tax collection procedures - a barrier to efficient cross- border investments.
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Legal inconsistencies and uncertainties - a barrier to a successful capital market union.
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Fragmented corporate actions and general meeting processes - a risk that successful barrier dismantling work is jeopardised by renewed fragmentation.
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Inconsistent application of asset segregation rules - providing for safety and efficiency through harmonisation.
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Lack of harmonisation in registration and investor identification rules and processes - an obstacle to cross-border securities investment and issuance.
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Complexity of post-trade reporting structure - an obstacle to making the EU an attractive investment destination.
EFAMA will contribute to the ongoing consultation on post-trade in a CMU to insist on the need to tackle the above existing barriers in this field.
Full statement
© EFAMA - European Fund and Asset Management Association
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