Finadium: Europe’s Capital Markets Union: Progress and Mid-Term Impacts

A new report from Finadium analyzes what Europe’s Capital Markets Union is meant to do, how a single European market would compare against the US and China, and what market participants might expect over the next two years. Although a final CMU is unrealistic any time soon, incremental progress should be noted and could have important ramifications along the way.

CMU is the idea of creating one capital markets framework with equal access for the entire European community. CMU is starting from a complex reality of multiple regulatory regimes, political priorities and national champions across 27 countries (as of early 2022). It offers perceived benefits but faces significant hurdles.

Securities finance occupies a familiar seat in the CMU story. It is not mentioned by name but will be the recipient of impacts throughout the process, ranging from the European Single Access Point (ESAP) for data to integration of settlement mechanisms. CMU is similar in this regard to other major European regulations like MiFID II and MiFIR, which had few direct references to financing but where the indirect references were wide-reaching and much more important. Likewise, securities finance will need to read between the lines as CMU continues to take shape.

This report should be read by any capital markets participant interested in European or global markets with an emphasis on securities finance. CMU is a European phenomenon but its impacts will be seen worldwide.

A direct link for Finadium subscribers to this report is

For non-subscribers, more information is available here.

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