Capital Markets Union after Brexit

2018 ◽  
Author(s):  
Danny Busch ◽  
Emilios Avgouleas ◽  
Guido Ferrarini
Keyword(s):  
Capital Markets ◽  
Action Plan ◽  
Economic Perspective ◽  
Institutional Investment ◽  
Fully Integrated ◽  
Cross Border ◽  
Better Regulation ◽  
Capital Markets Union ◽  
To Come ◽  
General Aspects

In line with the European Commission's wish to create fully integrated European capital markets, its Capital Markets Union (CMU) Action Plan is intended to make it easier for providers and receivers of funds to come into contact with one another within Europe, especially across borders. This book discusses various aspects of CMU from a legal and/or economic perspective. The chapters are grouped in a thematic way, covering the following areas: (i) general aspects, (ii) Brexit, (iii) financing innovation, (iv) raising capital on the capital markets, (v) fostering retail and institutional investment, (vi) leveraging banking capacity to support the wider economy, and (vii) facilitating cross-border investing. This chapter outlines some general aspects of CMU that are not explicitly covered by the other chapters in this book: (1) the CMU objectives, (2) the EBU–CMU relationship, (3) regulatory burden, and (4) Better Regulation and the Call for Evidence.

Part I General Aspects, 1 Introduction

2020 ◽  
Author(s):  
Busch Danny ◽  
Ferrarini Guido ◽  
Franx Jan Paul
Keyword(s):  
Capital Markets ◽  
Banking Industry ◽  
Action Plan ◽  
The European Union ◽  
Economic Shocks ◽  
Capital Markets Union ◽  
Bank Funding ◽  
To Come ◽  
General Aspects

This introductory chapter discusses the new prospectus regime of the European Union (EU). In particular, it delves into the Action Plan on Building a Capital Markets Union (CMU). The CMU Action Plan should make it easier for providers and receivers of funds to come into contact with one another within Europe, especially across borders. This is regardless of whether raising capital occurs through the intermediation of banks, through the capital markets or through alternative channels such as crowdfunding. In addition, more non-bank funding will help to lessen dependence on the traditional banking industry and enhance the ability of the system to cope with economic shocks. The chapter considers what it means for the CMU Action Plan in light of recent events such as Brexit, before turning to a brief overview of the following chapters.

Capital Markets Union in Europe

2018 ◽  
Keyword(s):  
Capital Markets ◽  
Market Integration ◽  
Quality Analysis ◽  
Institutional Investment ◽  
Economic Implications ◽  
Markets And Institutions ◽  
Capital Markets Union ◽  
General Aspects ◽  
Broad Overview

This book analyses the legal and economic implications of the European Commission's plans to form a Capital Markets Union (CMU) in Europe, which will have a major impact on financial markets and institutions both in the region and beyond. A detailed introductory chapter provides a broad overview of the various aspects and challenges of the CMU proposals, whilst thematically grouped chapters cover the following areas: (i) general aspects, (ii) Brexit, (iii) financing innovation, (iv) raising capital on the capital markets, (v) fostering retail and institutional investment, (vi) leveraging banking capacity to support the wider economy, (vii) facilitating cross-border investing, and (viii) comparative aspects of capital market integration. The book provides high-quality analysis of the legal and economic issues in a practical context.

Capital Markets Union – One Year On From the Action Plan

2017 ◽  
Vol 14 (2) ◽  
Author(s):  
Miriam Parmentier
Keyword(s):  
European Commission ◽  
Capital Markets ◽  
Action Plan ◽  
Capital Markets Union ◽  
One Year

AbstractOn 30 September 2015, the European Commission adopted its Action Plan on Building a Capital Markets Union

Efforts to Strengthen the Clearing and Settlement Framework of the Capital Markets Union

2018 ◽  
Author(s):  
Bas Zebregs ◽  
Victor de Serière
Keyword(s):  
Capital Markets ◽  
Risk Averse ◽  
Fully Integrated ◽  
Central Counterparties ◽  
Clearing And Settlement ◽  
Capital Markets Union ◽  
Under Construction ◽  
Proposed Regulation ◽  
Market Infrastructure ◽  
The Eu

This chapter discusses the EU's efforts to strengthen the European clearing and settlement framework for securities and derivatives transactions. That exercise is pa should promote access and therefore competitrt of the EU's plans to establish an integrated European Capital Markets Union. Important steps have already been undertaken, and more legislation is now under construction, designed to lead to a comprehensive robust market infrastructure in the EU. These include the EU Commission's proposals to update the segregation provisions in the European Market Infrastructure Regulation and the proposed regulation dealing with the recovery and resolution of central counterparties. The chapter shows that although the advances made are significant, there is quite a long way to go before a fully integrated and risk-averse environment for clearing and settlement is achieved.

scholarly journals Market Building and the Capital Markets Union: Addressing Information Barriers in the SME Funding Market

2017 ◽  
Vol 14 (2) ◽  
Author(s):  
Pierre Schammo
Keyword(s):  
Information Sharing ◽  
Capital Markets ◽  
Paradigm Shift ◽  
Action Plan ◽  
White Paper ◽  
Access To Finance ◽  
Policy Initiatives ◽  
Information Barriers ◽  
Capital Markets Union ◽  
Policy Measures

AbstractThe Capital Markets Union (CMU) is one of the flagship policy initiatives of the Juncker Commission. The Commission’s strategy for realizing a CMU is set out in its White Paper on building a CMU. Besides describing the Commission’s vision of a CMU, the white paper includes an action plan which details the measures that are needed to build a CMU. The aim of this article is to consider the Commission’s measures in one particular area of the action plan. Specifically, this article examines the Commission’s strategy for overcoming information barriers to SME investment. By acting in this area, the Commission’s objective is to facilitate access to finance, but also to diversify sources of funding for SMEs, which are traditionally heavily dependent on bank-based finance. This article evaluates the Commission’s strategy and its prospects of success. After assessing the relevant policy measures, it will argue for a paradigm shift which is based on three pillars: a greater emphasis on market building measures; a greater emphasis on information sharing duties as one mechanism that can help to address information barriers; and a market correcting strategy to dovetail greater market building.

The Capital Markets Union and Firms’ Access to External Market-Based Finance

2018 ◽  
Author(s):  
Paola Bongini ◽  
Annalisa Ferrando ◽  
Emanuele Rossi ◽  
Monica Rossolini
Keyword(s):  
Financial Markets ◽  
Capital Markets ◽  
Capital Market ◽  
Action Plan ◽  
Business Environment ◽  
Current Debate ◽  
Capital Markets Union ◽  
Country Specific ◽  
The Eu

Firms’ access to capital markets among Eurozone countries is a challenging issue for the EU Capital Markets Union (CMU) agenda. We contribute to the current debate on the CMU by identifying the characteristics of firms that can be deemed ‘suitable’ for market-based finance. Using survey-based research, we show which firm-specific attributes and country-specific features foster a firm’s likelihood of accessing non-bank sources of finance. Our results reveal that a few Eurozone countries appear to have achieved high access to capital market financing, but there is substantial unexploited potential among firms fit for market-based finance. Our research also indicates that the macro business environment and conditions—such as GDP growth, the degree of development of domestic financial markets, and the quality of the legal and judicial enforcement system—significantly impact firms’ market suitability. Our results therefore can be linked to a number of goals of the CMU Action Plan.

Institutional Investors and Development of Europe’s Capital Markets

2018 ◽  
Author(s):  
Zsolt Darvas ◽  
Dirk Schoenmaker
Keyword(s):  
Capital Markets ◽  
Institutional Investors ◽  
Risk Sharing ◽  
Financial Integration ◽  
Home Bias ◽  
Main Hypothesis ◽  
Institutional Investment ◽  
Increased Risk ◽  
Capital Markets Union

This chapter investigates the role of institutional investment in developing capital markets. It also examines the role of institutional investment in risk sharing. The contribution of institutional investment to risk sharing depends on: the size of institutional investment; the degree of geographical diversification of portfolios, and the composition of assets (equities vs bonds) held. The chapter investigates these three aspects of financial integration in the EU's Capital Markets Union and assesses the prospects for increased risk sharing in the EU. The main hypothesis is that the larger the assets managed by institutional investors, the smaller the home bias and thereby the larger the scope for risk sharing, ceteris paribus. The analysis will focus on portfolio equity home bias.

scholarly journals Capital markets union: Factors affecting financial information relevance

2016 ◽  
Vol 14 (1) ◽  
pp. 588-604
Author(s):  
Vincenzo Foglia Manzillo
Keyword(s):  
Capital Markets ◽  
Small And Medium Enterprises ◽  
Action Plan ◽  
Financial Information ◽  
Net Income ◽  
Factors Affecting ◽  
Share Prices ◽  
Information Relevance ◽  
Capital Markets Union ◽  
Medium Enterprises

This study examines the European capital markets and the differences in the way in which share prices reflect financial information in light of the European project “Capital Markets Union”. Findings suggest that diversity exists and enforcement regime affects the above relationship. In particular, Small and Medium Enterprises (SMEs) are characterized by a weak relationship between prices and accounting information compared to large issuers, but this relationship enhance if the SMEs have an institutional investor as significant shareholder. Finally, findings reveal that whether there are ratings or analyst coverage on an issuer, prices are more linked to expected net income instead of the historical data. These results confirm the goodness of the action plan of building a Capital Markets Union.

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