ICMA publishes preliminary thoughts on EC's CMU package


29 November 2021 The International Capital Market Association (ICMA) welcomes the concrete steps that have been taken towards enhancing Europe’s capital markets in the European Commission’s recent Capital Markets Union Package. ICMA outlined its preliminary thoughts on the Package in a publication today.

Resilient and well-functioning bond markets are critical to funding sustainable economic growth and development in the EU and beyond. ICMA is particularly pleased to see progress on some of the key points it raised previously that are crucial to supporting the further development of the cross-border bond market. This includes:

  • suggested amendments to MIFIR facilitating the emergence of one consolidated tape for each asset class including bonds;
  • amendments to the MiFIR bond transparency regime that mean liquidity and investment grade (IG) or high yield (HY) classification would be taken into account when deferrals are determined;
  • the removal of the MiFID II Article 27(3) best execution reporting requirement;
  • the ESAP proposals demonstrating progress towards a truly integrated European platform for companies’ public financial and non-financial documents; and
  • the proposed review of the ELTIF Regulation to strengthen the role of securitisation.

Within these proposals, there are some points that ICMA considers require further consideration, in particular the calibration of the MiFIR transparency regime. In relation to the AIFMD Review, ICMA’s buy-side community is concerned by certain aspects of the proposals and considers it to be important that improvements that may result from the ELTIF Regulation Review are not outweighed by changes that may be made under the AIFMD Review.

For further information, please see ICMA’s publication.

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