AFME calls on EC to unlock the potential of new technologies
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AFME calls on EC to unlock the potential of new technologies 14 September 2020London Reporter: Maddie Saghir
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The Association for Financial Markets in Europe (AFME) has called on the EU to help unlock the potential of new technologies for European capital markets.
In a paper, European Capital Markets in the Digital Age, AFME stressed the need for the European Commission (EC) to promote innovation, competitiveness, and resilience across Europe’s capital markets.
AFME outlines the regulatory framework needed to support banks as they adopt new technologies such as crypto-assets, artificial intelligence and cloud computing, harness the value from data, and address the challenges of cybersecurity and operational resilience.
The association highlighted the need for a “competitive and level playing field” that ensures all firms involved in financial services, including technology firms, adhere to the ‘same risk, same activity, same regulation’ principle.
Additionally, AFME called for the EC to provide technology-neutral legislation providing flexibility for firms to adopt new technologies in a risk-based and proportionate manner.
The paper also listed global consistency and highlighted the importance of promoting regulatory harmonisation across the EU, and global cooperation and consistency to reduce the barriers for technology adoption.
James Kemp, managing director, head of technology and operations at AFME, said: “Evolving technologies are enabling innovative financial products and services, improving the resilience of financial markets, and supporting new ways of working.”
Kemp continued: “It is important that consistently applied regulation supports these new technologies to unlock a vibrant and competitive digital single market and build stronger, more efficient capital markets infrastructures.”
“The COVID-19 pandemic has reinforced this requirement, demonstrating how technology and has underpinned the continued functioning and resilience of capital markets,” he added.
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