On 15 November, FIA submitted comments to the European Commission (EC) regarding its consultation on post-trade in a Capital Market Union.
In its consultation, the EC raised numerous questions relating to post-trade, including:
- What are the key trends that are relevant for shaping EU post-trade services today?
- What should the EU post-trade markets look like in 5 to 10 years time?
- What are the remaining post-trade barriers to integrated financial markets and solutions?
In responding to these and other queries posed by the EC in its consultation paper, FIA observed that “Capital markets are global and require globally relevant policy solutions....CMU should seek to successfully achieve two specific, mutually supporting, objectives: building a strong European financial market, with the ultimate aim of ensuring that Europe’s financial market is competitive in the global financial markets”.
FIA strongly supported the desire of the EC to ensure that EU laws are technologically neutral and do not become an active barrier to desirable, successful, innovation. With the right vision and stewardship across industry participants and regulators, the next 5 to 10 years could prove a truly transformational opportunity for post-trade in a Capital Market Union.