- Advertisement -spot_img
Friday, December 3, 2021

EU sees ‘decisive moment’ for building a single capital market

LONDON. On Thursday, the European Union announced a third wave of reforms in six years to try to create a whole stock market that could better compete with London and New York, a move that would put stock exchanges against rival platforms.

The EU’s Capital Markets Union (CMU) project suffered as the UK and its large financial sector pulled out of the bloc.

To keep the project going, the EU’s executive European Commission has proposed creating a “feed” or stock and bond price tracking and providing investors with free company information. He also proposed amendments to long-term investment funds and plans to improve the coordination of their regulation.

The Commission wants to make it easier for companies to raise funds to meet climate targets and recover from the financial blow of the COVID-19 pandemic. Brexit also leaves Brussels on the cusp of a financial rival.

“It is important that we develop our own capital markets,” said the head of EU financial services, Maireed McGuinness.

The security feed and single point of information will create a “defining moment” for the CMU when it rolls out, she said.

“There are many good factors that make the development of a union in the capital market more likely than if we did not have these forces pushing us towards sustainability,” she said.

The proposals will require the approval of the European Parliament and EU countries to become law, with the expected compromises.

The German association of investment funds BVI said the proposed European single point of access to company information will help asset managers meet their growing reporting obligations in a more cost-effective way.

Read Also:  2nd horse injured at Los Alamitos races dies

Battle Ribbon

Legislators and EU states will face industry lobbying for the proposed consolidated tape to ensure that share prices are as “close to real-time as technically possible” – and at a low or no cost to retail investors.

Exchanges want a 15-minute delay in their data transfer. Banks and investment funds say a tape recorder will be useless if not in real time.

Rainer Riess, CEO of the Federation of European Stock Exchanges, said exchanges are now faced with the need to give away data for free, and income depends on how many investors subscribe to the new feed.

“Retail investors are not getting anything in addition to what they get from their broker or Google today for free,” Riess said.

The Association of Financial Markets in Europe (AFME), representing investment banks and funds, said real-time tape is needed to deliver the CMU.

Industry officials say Brussels paid a “ransom” to the exchanges, inviting them to split the revenue in exchange for a real-time recording.

Thursday’s deals complicate some types of OTC or “dark” trading in order to redirect more transactions to exchanges. Industry officials say this could redirect business to London, where regulators are taking a more liberal approach after Brexit.

The EU is using its CMU package to make other changes, such as prohibiting payment for flow of orders or when retail brokers forward customer orders to other traders for a fee.

Hugh Jones

To follow

World Nation News Deskhttps://www.worldnationnews.com
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
Latest news
Related news
- Advertisement -

Leave a Reply