#EU #finance #settlement #securities #modernisation #banking #fundmanagement #lobbying #financialregulation #marketreform #investment #EuropeanUnion
In a notable push towards modernising the securities market within the European Union, banks and fund managers have voiced a unified call for the bloc to commit to a clearer, more streamlined settlement plan. This collective appeal from the financial industry’s corner, represented by various influential lobby groups, underscores a growing consensus on the need for an enhanced, efficient framework that could redefine the landscape of European securities trading and settlement processes.
The crux of this advocacy revolves around pressing Brussels to establish a definitive timetable for the overhaul of securities market operations. Lobbyists argue that the current system, characterized by its longer settlement cycles, not only hampers the competitiveness of the European financial market but also escalates operational costs for participants. This, in turn, affects the market liquidity and could potentially deter investment in the region, thus impacting its financial market’s integration and development. The call for modernisation is not merely a quest for speed but a broader plea for agility, transparency, and resilience in market practices.
Moreover, the push for a shorter settlement cycle is seen as a strategic step towards aligning the EU’s financial markets with global standards, where several major markets have already made significant strides towards or have implemented shorter settlement periods. Advocates believe that such a move would not only bolster the attractiveness of the European market on the global stage but also enhance risk management by reducing counterparty and market risks. This is particularly critical in an era marked by increased market volatility and the need for robust financial systems that can withstand economic shocks.
The initiative calls for a coordinated effort among policymakers, industry stakeholders, and regulatory bodies to pave the way for this critical shift. By establishing a clear roadmap towards shorter settlement cycles, the European Union could significantly improve the efficiency of its securities markets. This would not only benefit participants through reduced costs and improved liquidity but would also strengthen the EU’s position as a leading and competitive financial market globally. The outcome of these efforts would undoubtedly have far-reaching implications, from enhancing market integrity to fostering innovation and growth across the EU’s financial landscape.
