2018年-CEPS欧洲政策研究中心_Towards_Variable_Union_in_Europes_Capital_Markets_16页_5mb

Summary of the 2017 ECMI Annual Conference

Core Content

The 2017 ECMI Annual Conference focused on the development of a Capital Markets Union (CMU) in Europe, emphasizing the need for a more integrated and resilient financial system. The conference addressed key challenges and opportunities in the post-Brexit era, including long-term investment, derivatives markets, fintech, and the role of distributed ledger technology (DLT). The report highlights that the CMU is a long-term project requiring the collaboration of multiple stakeholders, both public and private.

The conference participants stressed that the current CMU Action Plan, although a step forward, needs to be continued or accelerated to ensure the EU can finance itself effectively. A post-2019 vision is necessary, especially considering the Brexit impact and the evolving financial landscape.

Main Viewpoints

• Capital Markets Union (CMU): The CMU must go beyond the 2019 deadline. It is a strategic initiative that aims to rebalance Europe’s financing structure, promote long-term investment, and enhance the competitiveness of European capital markets.

• Long-term Investment: Capital markets are crucial for financing real assets, and their role in sustainable growth is significant. However, barriers to integration and regulatory constraints need to be addressed to support long-term investment. Retail and institutional investors must be encouraged to participate more in equity markets.

• Derivatives Markets Reform: The UK’s withdrawal from the EU has prompted a reevaluation of the derivatives market reform. The European Securities Markets Authority (ESMA) is playing a more central role in supervision, and transitional arrangements may be necessary to ensure the Brexit-proof nature of the derivatives market. The recovery and resolution framework for central counterparties (CCPs) is under review, with a focus on supervisory convergence and risk management.

• DLT and Financial Innovation: DLT is seen as a promising tool for increasing transparency, efficiency, and standardization in financial markets. However, its adoption is still in early stages, and interoperability and governance are critical for its success. The technology could bring benefits to trade and post-trade processes, but its disruptive potential is likely to be incremental rather than revolutionary.

• Sustainable Finance: The EU must support the transition to a low-carbon, climate-resilient, and circular economy. This includes promoting sustainable investment strategies and improving corporate bond issuance and market transparency.

Key Information

• The CMU is a pro-growth, pro-business, and pro-jobs initiative aimed at improving access to market finance and reducing the reliance on the banking sector.

• Supervisory convergence is a central goal, but full harmonization of national regulations may not be necessary or desirable.

• Brexit has influenced the relocation of financial activities, and the EU must prepare for a new financial landscape with 27 member states.

• Institutional investors and asset managers need to be equipped to handle ESG (Environmental, Social, and Governance) risks and opportunities.

• DLT applications are expected to bring operational efficiencies, but robust governance and interoperability are essential for its integration into existing systems.

• The EU Commission has committed to continuing the CMU project and will issue an Action Plan on FinTech to guide its development.

Strategic Considerations

• A strategic group of 'wise persons' is needed to reassess the Single Market for financial services without being influenced by current legislative agendas or Brexit negotiations.

• Regulatory interventions must be targeted and controlled to ensure innovation in the fintech sector without creating distortions.

• The future of European capital markets is uncertain due to policy, market, and technological developments, and there is a need for ongoing monitoring and policy reminders regarding the inefficiencies in the current system.

Conclusion

The 2017 ECMI Annual Conference underscored the importance of a strategic, ambitious, and coordinated approach to the development of Europe's capital markets. It emphasized the need for regulatory reform, technological innovation, and market integration to ensure the long-term sustainability and resilience of the financial system in the post-Brexit era. The conference also highlighted the role of DLT and sustainable finance in shaping the future of capital markets, while cautioning against overly rigid regulatory approaches and the need for a balanced and competitive financial ecosystem.

Document Structure

• Title: Towards Variable Union in Europe's Capital Markets
• Conference: 2017 ECMI Annual Conference
• Participants: Academics, policymakers, industry representatives
• Key Topics:
  • Capital Markets Union (CMU)
  • Long-term investment
  • Derivatives market reform
  • DLT and its applications
  • Sustainable finance
• Authors of Best Paper: Guillaume Vuillemey and Vincent Bignon
• Sponsors and Partners: Various financial institutions, law firms, and academic bodies
• Disclaimer: The report reflects the views of the rapporteurs and not necessarily those of the organisations they are affiliated with.