AFME calls on European Parliament to show more ambition to deliver successful CMU
16 January 2024 Europe
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The Association for Financial Markets in Europe (AFME) has welcomed a vote on the Markets in Financial Instruments Directive/Regulation (MiFID/R) by the European Parliament. Yet, AFME has called for more ambition to successfully deliver the EU’s Capital Markets Union (CMU).
The European Parliament voted on 15 January on the latest amendments to the MiFID/R. AFME believes that implementing the equities and fixed income consolidated tapes should be the priority going forward.
Adam Farkas, CEO of AFME, says: “Despite efforts under the EU’s CMU action plans, EU capital markets remain underdeveloped in comparison to the size of the EU economy and the EU’s global counterparts. Financial integration is lower than before the financial crisis, EU bond and securitisation markets are three times smaller than in the US, EU equity issuance remains heavily subdued, and the overall availability of risk capital is around 10 times lower than in the US.”
Farkas continues: “Looking ahead, EU institutions and member states must come up with transformative actions to attract more investors, increase liquidity, improve the functioning of secondary markets, ensuring the seamless and integrated functioning of a single European capital market. Dynamic, deep and liquid capital markets are instrumental in achieving Europe’s ambitions in delivering green and digital transitions.”
The European Parliament voted on 15 January on the latest amendments to the MiFID/R. AFME believes that implementing the equities and fixed income consolidated tapes should be the priority going forward.
Adam Farkas, CEO of AFME, says: “Despite efforts under the EU’s CMU action plans, EU capital markets remain underdeveloped in comparison to the size of the EU economy and the EU’s global counterparts. Financial integration is lower than before the financial crisis, EU bond and securitisation markets are three times smaller than in the US, EU equity issuance remains heavily subdued, and the overall availability of risk capital is around 10 times lower than in the US.”
Farkas continues: “Looking ahead, EU institutions and member states must come up with transformative actions to attract more investors, increase liquidity, improve the functioning of secondary markets, ensuring the seamless and integrated functioning of a single European capital market. Dynamic, deep and liquid capital markets are instrumental in achieving Europe’s ambitions in delivering green and digital transitions.”
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