EU finance ministers agree scaled-back plan to move market supervision to ESMA, exempting Deutsche Börse
EU finance ministers agreed a watered-down compromise to centralise supervision of most stock exchanges, central counterparties and securities depositories under the European Securities and Markets Authority in Paris, as the European Commission had proposed. Germany secured exemptions for Deutsche Börse, and Reuters reports that the criteria also exclude SIX Group, Tradition and Tradegate. Belgium and the Commission criticised the carve-outs, which Reuters notes apply to a Spanish exchange as well, and Euroclear's supervision was among the points Belgium raised. Negotiations with the European Parliament now follow.
Bottom line — Only 10 to 15 of around 360 EU crypto-asset service providers will fall under ESMA oversight, according to officials cited by Reuters.
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Reuters reports the compromise removed three of nine central counterparties from ESMA's remit, including Nasdaq Clearing, and cut central securities depositories from 15 to 13.
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POLITICO reports the Commission's Maria Luís Albuquerque said the compromise 'falls significantly short of the level of ambition needed', and ECB President Christine Lagarde was also critical, per POLITICO.
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Belgian Finance Minister Jan Jambon told the public debate that 'the package includes as many ins as there are outs', and POLITICO reports Belgian Prime Minister Bart De Wever will raise the issue with EU leaders.
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POLITICO reports a review clause would let the Commission revisit the carve-outs two years after supervisory rules apply, though changes would require new legislation.
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POLITICO reports the EU budget would cover 60% of ESMA's costs not met by industry fees, with national supervisors paying 40%, a point the Commission linked to budget tensions.
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The Irish Times reports Simon Harris called the deal the biggest overhaul of the EU capital market 'in decades', while the Commission said the carve-outs reflected 'narrow national considerations'.
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An ECB Occasional Paper cited in the sources notes that EU venture capital availability is about a third of US levels, a background point rather than a reaction to this deal.