European Union Council reaches agreement on capital markets integration

EU finance ministers have reached an agreement on the key elements of the Markets Integration and Supervision Package (MISP). This initiative is a central component of the ‘One Europe, One Market’ agenda, aimed at mobilizing private savings—estimated at approximately 10 trillion euros currently held in low-interest bank deposits—to fund innovative companies and economic growth.

A major shift involves transferring the supervision of significant cross-border trading systems, central securities depositories, and central counterparties from national authorities to the European Securities and Markets Authority (ESMA). Regarding crypto-assets, the Council proposes that only the most significant cross-border providers fall under direct European supervision, rather than all providers as originally suggested by the Commission.

The package introduces a voluntary status for Pan-European Market Operators (PEMO), allowing for multiple trading systems to operate across different states under a single license. It also implements a ‘depository passport,’ enabling funds to select depositories in member states other than where they are domiciled. These measures are intended to reduce administrative barriers, lower costs for financial firms, and facilitate easier access to capital for non-financial companies.