ECB欧洲央行-Letter-from-the-ECB-President-to--Mr-Markus-Ferber,-MEP,-on-the-European-distribution-of-debt-instruments-_EDDI_-initiative_2页_92kb

ECB-PUBLIC: Summary of Mario Draghi's Response to Mr Markus Ferber's Letter

Core Content

This document is a response from Mario Draghi, President of the European Central Bank (ECB), to a letter from Mr Markus Ferber, a Member of the European Parliament. The letter was forwarded by Mr Roberto Gualtieri, Chairman of the Committee on Economic and Monetary Affairs. Draghi outlines the Eurosystem's position on the European Debt Distribution Initiative (EDDI), which was launched as part of a six-week market consultation.

Main Points

• EDDI Initiative: The Eurosystem initiated a six-week market consultation to explore the potential of a European mechanism for the issuance and initial distribution of debt securities in the European Union (EDDI).
• Purpose of EDDI: The initiative aims to address the issue of home bias in debt securities investments, which continues to affect the financial markets in the EU.
• Financial Integration: One of the Eurosystem's key objectives is to promote financial integration in Europe. EDDI is part of broader efforts towards the capital markets union, which includes fostering cross-border investments and easier access to funding.
• Collaborative Approach: EDDI is not intended to be a competing entity but rather a complementary and potentially interoperable mechanism. It will work in close collaboration with central securities depositories (CSDs) and benefit them.
• No Unilateral Intervention: The market consultation is meant to gather views from relevant stakeholders, not to lead to any form of unilateral intervention by the Eurosystem.
• Legal and Regulatory Considerations: The Eurosystem will take into account all relevant legal and regulatory aspects, including its own by-laws and statute, when considering any follow-up actions based on the consultation feedback.

Key Information

• Date of Consultation Launch: 22 May 2019
• Duration of Consultation: Six weeks
• Target Audience: Issuers, investors, and other market stakeholders
• Objective of the Eurosystem: To support financial integration, enhance cross-border investments, and improve the efficiency of monetary policy implementation
• EDDI's Role: To facilitate the issuance and initial distribution of debt securities in the EU, reducing home bias
• Collaboration with CSDs: The Eurosystem intends to work closely with central securities depositories to ensure interoperability and mutual benefit
• Consultation Feedback: The feedback will be considered in determining any follow-up actions, in line with the Eurosystem's mandate

Conclusion

The Eurosystem is committed to promoting financial integration in Europe through initiatives like EDDI. The current market consultation is an exploratory phase aimed at understanding the potential business case and the role the Eurosystem can play. The initiative is designed to complement existing actors and mechanisms in the securities transaction chain, and not to compete with them. The Eurosystem will take all legal and regulatory considerations into account before deciding on any further steps.