The European Commission has launched a targeted consultation aimed at identifying obstacles to financial market integration across the EU. Published on 15 April, the initiative forms part of the broader Savings and Investments Union (SIU) strategy, and invites input from a wide range of stakeholders, from regulators to market participants.
Post-trading takes a prominent role in the consultation, which covers seven sections in total. Among the issues highlighted are persistent cross-border settlement barriers, inefficiencies in CSD links, and the slow uptake of new technologies.
The Commission is seeking views on how rules like the Central Securities Depositories Regulation (CSDR) and the Settlement Finality Directive (SFD) apply to distributed ledger technology-based systems. Respondents are also invited to flag where compliance costs may be disproportionate or where legal uncertainties create friction.
Reassess
Many of the horizontal barriers raised echo concerns outlined in the European Post Trade Forum’s 2017 report, which the Commission now wants stakeholders to reassess. This includes operational synergies between entities, the supervision of outsourcing, and the regulatory treatment of tokenised assets. The consultation also probes whether the DLT Pilot Regime is functioning as intended, and how innovation can be better supported within the current framework.
Push for more harmonised supervision
Supervisory fragmentation is another key theme. The Commission is asking whether certain parts of the market – such as CSDs, CCPs, asset managers, or crypto service providers – would benefit from more centralised oversight at the EU level. The idea has been circulating for some time, with Member States and industry players split on whether shifting supervisory tasks away from national authorities is a step forward or a step too far.
Responses must be submitted via an online questionnaire, which will go live on 22 April. The deadline for feedback is 10 June. According to the Commission, input gathered from this consultation will guide the next steps in shaping the regulatory architecture for a more integrated and efficient EU capital market.
