EU reforms capital market supervision via ESMA oversight

The European Union is implementing a major reform of capital market supervision to reduce fragmentation and facilitate cross-border investment. Under the new rules, key European stock exchanges, securities depositories, and clearing institutions will come under the direct supervision of the European Securities and Markets Authority (ESMA).

EU finance ministers reached a political agreement on the reform's core elements on October 9. On the same day, Carlo Comporti was appointed as the new president of ESMA, effective November 1. The initiative aims to encourage the movement of capital across member states, as approximately 10 trillion euros in savings currently remain in bank deposits rather than being invested.

The agreement includes specific exceptions; notably, Germany secured provisions allowing parts of the Deutsche Börse group that focus primarily on the domestic market to remain under national supervision.

In alignment with these broader EU shifts, the Croatian Parliament is set to discuss amendments to its national Capital Market Act to harmonize local legislation with 25 European directives.