The Cyprus Securities and Exchange Commission (CySEC) has
brought attention to the European Commission’s targeted consultation on the
integration of EU capital markets. Published on 15 April 2025, the consultation
invites financial institutions and other market participants to provide
feedback.

The purpose of this consultation is to identify obstacles to
financial market integration across the EU, in line with the Savings and
Investments Union (SIU) strategy, which was introduced on 19 March 2025.

Consultation Focuses on Simplification, Trading,
Post-Trade

The consultation covers a range of topics. The first section
focuses on simplification and burden reduction, aiming to address issues
related to simplifying the regulatory framework and reducing burdens across
trading, post-trade, and asset management activities.

The second section, trading, seeks feedback on measures to
improve liquidity consolidation across trading venues, enhance access to market
infrastructures, and ensure better execution quality.

In the third section, post-trading, the European Commission
is looking for concrete examples of barriers to cross-border settlement , issues
related to new technologies and market practices, and challenges arising from
unharmonised or inefficient market practices.

You may find it interesting at FinanceMagnates.com: CySEC
Informs Firms as EU Commission Targets T+1 Securities Settlement by 2027.

CySEC Seeks Feedback on Supervision, Barriers

The fourth section addresses horizontal barriers to trading
and post-trading infrastructures. The European Commission is interested in
feedback regarding barriers identified in the 2017 European Post-Trade Forum
report, as well as operational synergies, the issuance of financial
instruments, and innovations like the DLT Pilot Regime and asset tokenisation.

The fifth section on asset management and funds explores
obstacles to accessing the EU single market for asset management and investment
funds. It also seeks input on the effectiveness of existing authorisation and
passport systems and the potential for simplifying these processes.

The sixth section proposes a centralisation of supervision.
The European Commission suggests transferring the supervision of certain
entities, such as central counterparties, central securities depositories,
trading venues, asset managers, and crypto asset service providers, to European
Supervisory Authorities (ESAs).

EU Consultation on ESAs Governance and Funding

Finally, the consultation includes horizontal questions on
the supervisory framework. This section seeks feedback on the governance models
of the ESAs, including the European Securities and Markets Authority (ESMA),
the European Banking Authority (EBA), the European Insurance and Occupational
Pensions Authority (EIOPA), and the Anti-Money Laundering Authority (AMLA).

It
also discusses new supervisory convergence tools and the potential for an
enhanced role of ESAs, as well as their funding.