Position paper - FIN - Response to Commission consultation on Capital Markets Union

AmCham EU proposes steps to boost cross-border financing and the efficient allocation of capital

Executive summary

Establishing a Capital Markets Union would mark an important step in the right direction towards delivering the open and appropriately-regulated financial markets necessary to support Europe as an internationally competitive location for investment. At present, the fragmented state of markets represents an obstacle to cross-border investments and the efficient allocation of capital.  Given concerns of policy-makers and market participants with the disruption of market liquidity, we would advise the Commission to look, as a matter of urgency, at the cumulative impact of all existing and ongoing legislation on the market maker model, and to recalibrate some of the requirements where appropriate. In particular, CMU should allow policy-makers to look with a fresh eye at the way in which legislation that is currently being negotiated may impact liquidity provision. In addition, including regulatory cooperation on financial services in the TTIP and supporting the efforts of the IOSCO Task Force on Cross Border Regulation would support Capital Markets Union by delivering consistent international standards and better harmonised implementation.