EU governments agree to give ESMA Oversight of Major Financial Markets

The Market Integration and Supervision Package (MISP) would place key market operators, currently monitored by national regulators, under the direct supervision of the European Securities and Markets Authority (ESMA).

Although some rules are harmonised across the EU, differences in how they are implemented, supervised and enforced have contributed to fragmentation in financial markets.

The Irish president said the package is designed to facilitate cross-border movement of savings and investments, help companies access finance, and give consumers more opportunities to earn a return on their assets. But some of the trading venues operated by Deutsche Boerse, which runs the Frankfurt stock exchange, may not fall under direct oversight by ESMA.

Euronews had reported earlier that Germany had obtained an exemption for Deutsche Börse’s domestic trading venues, meaning a crucial portion of the system will remain under German regional control. The present announcement does not detail this issue.

Dutch Finance Minister Eelco Heinen praised the agreement, saying: “Major step forward today in moving the Capital Markets Union forward. We have done more in 10 months than in 10 years.

This is a major step in the funds and Investments Union (SIU) that is designed to channel more of Europeans’ funds into investments that boost the economy.

Supporters of more integrated capital markets say they would reduce costs and enhance access to funding for companies, and provide savers and investors more investment options.

Also Read:

Dubai’s Celebrity Branded Residences Trend Continues With New SRK Tower Debut

UAE, Thailand Conclude CEPA Discussions as Bilateral Trade Booms