Capital Markets Union (CMU)

The Capital Markets Union (CMU) is a capital markets action plan from the EC to facilitate the development of a more broadly markets based financial eco system. The plan includes financing initiatives for start-up companies and non-listed companies as well as making it easier for companies to enter and raise capital on public markets. It also has incentives to foster long term infrastructure and sustainable investment flows and engender greater retail investment. The CMU is also a platform to strengthen banking capacity across Europe in support of the wider economy by developing the EU capital markets and facilitating cross border flows and investments.

The CMU has already led to the creation of the European Post Trade Forum (EPTF) that has critically examined cross border settlement rigidity across Europe.

As Europe looks to develop its capital markets capabilities, the role of securities lending is an important component within that process. A vibrant securities lending market supports efficient and transparent price discovery for investors in primary and secondary markets and provides an important mechanism for transferring collateral around the financial system.

ISLA has been actively involved in dialogue with regulators and policy makers across Europe as the CMU agenda has developed, and we continue to work with member firms to get our voice heard on this important issue.