Completing

Capital

Markets

Union

Enabling EU-27 markets to play a bigger role in the financing of the Union's economy

CEPS-ECMI provided the background analysis of the report, and do not necessarily endorse or subscribe to the recommendations put forward by AMAFI.

Association française des marchés financiers (AMAFI)

AMAFI is the trade organisation working at national, European and international levels to represent financial market participants in France. AMAFI members consist of investment firms and credit institutions (French, European and global firms), operating in and/or from France (corporate and investment banks (CIBs), brokers-dealers, exchanges, and private banks). As far as financial products are concerned, we mostly represent all issuers/manufacturers of products (CIBs) and, through our private bank members, distributors as well. AMAFI has more than 150 members operating in equities and fixed-income and interest rate products, as well as commodities, derivatives and structured products for both professional and retail clients.

Centre for European Policy Studies

CEPS is one of Europe's leading think tanks and forums for debate on EU affairs, with an exceptionally strong in-house research capacity and an extensive network of partner institutes throughout the world. As an organisation, CEPS is committed to carrying out state-of-the-art policy research that addresses the challenges facing Europe and maintaining high standards of academic excellence and unqualified independence and impartiality. It provides a forum for discussion among all stakeholders in the European policy process and works to build collaborative networks of researchers, policy -makers and business representatives across Europe.

European Capital Markets Institute

ECMI conducts in-depth research aimed at informing the debate and policy-making process on a broad range of issues related to capital markets. Through its various activities, ECMI facilitates interaction among market participants, policy- makers and academics. These exchanges are fuelled by the various outputs ECMI produces, such as regular commen- taries, policy briefs, working papers, statistics, task forces, conferences, workshops and seminars. In addition, ECMI undertakes studies commissioned by the EU institutions and other organisations, and publishes contributions from high-profile external researchers.

2

AMAFI / 20-40

TABLE

OF

CONTENTS

Part A

An ambitious path of reforms to successfully accelerate

the market-based financing of the Union's economy

7

Introduction

8

A.1 The structure of EU financial markets

11

Bank based vs market based financial system

11

Equity and debt securities markets

12

Stock markets

12

Bond markets

12

OTC derivatives market

12

The securitisation market

12

The asset management sector

13

Private equity and venture capital

13

Households

13

Non-financial corporations

13

Insurance companies and pension funds

14

In a nutshell

14

A.2 Key challenges for EU-27 financial markets

15

2.1 The four main financing challenges

15

2.1.1 The Union's economic recovery

15

2.1.2 The mitigation of climate change

16

2.1.3 Fostering the development of EU champions especially in the digital

and energy transition spheres

16

Enabling the Union's economic sovereignty

16

Adapting to the digital revolution

17

Ensuring the Union's autonomy for energy transition

18

2.1.4 The ageing of the population

18

3

2.2 Brexit: the importance of the UK in the functionning of EU

financial markets

19

2.2.1 The emergence of London as a global financial centre

19

2.2.2 Trading

19

The primary equity markets

19

The secondary equity markets

19

The primary bond markets

20

The secondary bond markets

20

Foreign exchange

20

Derivative markets

20

2.2.3 Clearing and settlement

21

Clearing

21

Settlement

21

A.3 Reforming EU-27 financial markets

22

Priority 1 Revamping the securitisation market

22

Priority 2 Developing the flexibility of the prudential regulatory

framework

23

Priority 3 Managing Brexit and potential hard-Brexit implications

23

Priority 4 Creating an EU safe asset

26

Priority 5 Strengthening supervisory convergence

26

Priority 6 Developing an ecosystem of pension funds

27

Priority 7 Facilitating companies' access to investors

27

Priority 8 Encouraging debt-equity swap transactions

29

Priority 9 Creating the regulatory conditions for the emergence

of European champions in the digital and energy

transition fields

29

Proposed reforms with a more medium to long term

perspective

31

Consolidation of EU post trade infrastructures

31

Harmonizing procedures for repayment of withholding taxes to investors

31

Enabling EU-27 investment banks to play a central role in the financing of EU

32

economy to compete at EU and international levels

Simplifying the EU regulatory framework for financial markets

32

The importance of financial literacy for EU citizens

33

A targeted public support from EU institutions

33

Connecting EU trading venues for SMEs

33

Enhancing insolvency regimes

33

Corporate actions

33

Conclusion

34

4

Pour lire la suite de ce noodl, vous pouvez consulter la version originale ici.

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AMAFI - Association française des marchés financiers published this content on 24 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 September 2020 14:44:03 UTC