03 December 2014

AFME proposes an agenda for capital markets union

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