A-Team Insight, from A-Team Group’s Post

The Futures Industry Association European Principal Traders Association (FIA EPTA), representing Europe’s leading Principal Trading Firms, has released its policy recommendations for 2024-29 under the title Tide of Change: Enhancing Liquidity Provision to the European Economy. The association emphasises the urgent need for the EU to strengthen its capital markets to achieve its strategic objectives for a safer, greener, and more prosperous future. https://lnkd.in/gjWHyNZw #FIAEPTA #principaltradingfirms #capitalmarkets #EUmarkets #liqudity #ESMA FIA European Principal Traders Association

⚡️🇨🇭 #Capital #Markets: Federal Council launches consultation on amendments to the Swiss Financial Market Infrastructure Act (𝐅𝐢𝐧𝐌𝐈𝐀) Today, the Swiss Federal Council decided to initiate the consultation on amendments to the FinMIA, which will run until October 11, 2024. The proposed changes take account of technological advances and relevant developments in international standards and foreign legislation. They can be summarised as follows: ▪️ #Financial #market #infrastructures: targeted amendments should help prevent the failure of a systemically important financial market infrastructure. In particular, capital requirements will be strengthened, recovery and resolution planning will be improved, and requirements for payment systems will be specified.
 ▪️ #Derivatives #trading: it should be easier for foreign supervisory authorities to access Swiss trade repositories. This aims at improving the identification of global stability risks in derivatives markets. In addition, small companies that are not active in the financial sector (so-called small non-financial counterparties) should benefit from further simplified rules.
 ▪️ #Market #abuse: targeted measures should improve the prevention, identification and sanctioning of insider trading and market manipulation. It is important to have a robust regime against market abuse, in order to ensure both the confidence of financial market participants and a good reputation internationally. In particular, the revised FinMIA should set out the basic principles regarding the duties of issuers that are important for market integrity. Currently, these duties are regulated by the stock exchanges. In addition, the Swiss Financial Market Supervisory Authority FINMA should be able to monitor market abuse across trading venues. Source: https://lnkd.in/ejWKR-4z

EuroCTP's committee members include experts from: Deutsche Börse, Norges Bank, Bloomberg, XTB, and more… #trading #markets #tradingtechnology #consolidatedtape #ctp #eurozone

🌐 European Central Securities Depositories Association (ECSDA): Call for Action on Europe’s Capital Markets Competitiveness 📢ECSDA has published its “Call for Action on Europe’s Capital Markets Competitiveness.” This document provides valuable insights into the necessary measures for post-trade, which forms the foundation of legal unity and efficiency in European capital markets. ECSDA’s recommendations aim to strengthen Europe’s capital markets integration and growth. 🔍 Challenges in Post-Trade: The document addresses the root causes of issues hindering post-trade in the EU. Without addressing these underlying reasons, regardless of the technology or governance infrastructure, issuers, investors, and intermediaries will continue to grapple with fragmentation. 🚀 Towards the CMU: ECSDA reaffirms its commitment to developing and revitalizing the Capital Markets Union (CMU). Central Securities Depositories (CSDs) play a crucial role in providing services to issuers, investors, and the overall market. 👉 Read the full document: https://lnkd.in/eKgxvBjk #capital #markets #union (#CMU) 

FIA has published a paper outlining its views on how to support the progress of the European Union’s Capital Markets Union. The paper – Capital Markets Union at a Critical Juncture – sets out the role that derivatives play in effective capital markets. Specifically, FIA believes that centrally cleared derivatives are a key ingredient to building a strong CMU.  “As the EU aims to increase investor interest in its markets, it has many options in designing a system that protects its citizens, ensures market liquidity and attracts investors. The ideas shared in this paper, on behalf of the cleared derivatives markets, will help lay the groundwork for fit-for-purpose regulation, open and resilient markets, fair competition and opportunities for innovation. These adjustments will make EU capital markets more attractive to domestic and international investors and help to boost growth,” said Walt Lukken, President and CEO of FIA.  Read the paper ➡️ https://lnkd.in/dcJ7wfk8

Secondary markets matter Why? Well-functioning secondary markets are an essential part of the European capital market. They provide a reliable transparent price discovery process to determine fair market prices. Liquid secondary markets allow investors to buy and sell financial instruments efficiently. Companies may raise additional funds for further growth. They also ensure investor protection guaranteeing fair trading practices and a detailed regulatory framework. Thrilled to have been selected as a member of the Secondary Markets Consultative Working Group of the European Securities and Markets Authority (ESMA). I am very much looking forward to interacting with #ESMA experts and all esteemed members of the group. Important topics to further strengthen European secondary markets as well as more broadly the Savings and Investments Union (#CMU) will be on the agenda during the next European legislative cycle.

𝐀 𝐄𝐮𝐫𝐨𝐩𝐞𝐚𝐧 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐦𝐚𝐫𝐤𝐞𝐭: 𝐭𝐢𝐦𝐞 𝐭𝐨 𝐚𝐜𝐭 The need for a single European capital market is not new – it is long overdue. In his article for our semi-annual report Kurvenlage, Karel Lannoo, CEPS (Centre for European Policy Studies), writes that despite decades of effort, progress has been held back by gold-plating, regulatory inconsistencies and a lack of enforcement. Reports such as the ECB's Financial Integration 2024 made it clear how far we have fallen behind. The EU must now take bold steps: Eliminate regulatory arbitrariness and create a powerful, single supervisory authority modelled on the US SEC. We need a genuine capital markets union that promotes competition, investor protection and seamless market integration in all member states. #EU #CMU #Investment #Europe Deutsches Aktieninstitut

Transparency is key to operating efficient capital markets in Europe. #transparency #equitytrading #CMU #EuropeanCapitalMarkets

Yesterday, I had the honor to be invited to speak at the public event for the launch of the ‘Christian Noyer report’ on the relaunching of the Capital Markets Union, #CMU, at the French Ministery of Finance. With key notes by Bruno Le Maire, Christine Lagarde, Kristalina Georgieva and Pascal Donohoe. In a panel with Delphine d’Amarzit, Leena Mörttinen, Danuta Hübner, Emmanuel Duclos, Simon Janin, Raoul Salomon and Marie-Anne Barbat-Layani we talked about the role of supervision. The Autoriteit Financiële Markten welcomes the Noyer report. I stressed that centralisation of supervision is not an objective by itself but a means to contribute to more efficient European capital markets, that can support less fragmentation in order to improve the resilience of the EU. A growth model could be a good way to achieve more integrated supervision, including looking at how and where centralised supervision by European Securities and Markets Authority (ESMA) would be best. A good first start would be to have centralized data supervision at ESMA level, leading to a more simple regulatory process, less compliance costs, IT efficiency and a more comprehensive risk overview. Committed to contribute to the CMU goals.

Mind the Transparency Gap! 🙀 In our new research paper, we identify an entire segment of #equitytrading activity in both EU and UK markets that is currently completely unreported. This causes European #sharetrading volumes to be perceived by global #investors and #issuers as being significantly lower than they actually are. High time for change and getting the #CMU moving! 💡 💪 The unreported segment concerns hedging activity for bilateral synthetic equity exposures traded at scale on broker-internal Systematic Internalisers. If reported, the scale of this segment would significantly reduce the European #liquidity shortfall relative to other global markets and make our markets more attractive for #listing and #trading. Simple technical changes to the MiFID II post-trade #transparency regime would bring this activity to light, boosting reported European equity volumes so that they better reflect the actual levels of addressable liquidity and economic interest available in European markets today. Read the paper here 👉 https://lnkd.in/eKp3qnJ6