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Capital Markets Union

Capital Markets Union (CMU)

The Capital Markets Union (CMU) is one of the flagship initiatives of the European Commission under its President Jean-Claude Juncker. Its central aim is to enhance economic growth in the EU by increasing the role capital markets play in the financing of the economy and by leading towards the integration of financial markets.

Objective

It reflects the shift in political priorities from crisis management towards meaningful growth and reduction of unemployment levels. The overarching objective is to create growth and jobs for Europe based on stable and liquid capital markets. The Capital Markets Union is a framework programme which will develop the roadmap for reaching this goal. It is about building on the link between economic growth and capital markets, i.e. strengthening capital markets to foster growth.

Bank funding has been decreasing in response to higher capital and liquidity requirements. To close the gap in needed funding, alternative non-bank funding channels need to be further developed. Ultimately, the Capital Markets Union should support efficient capital allocation throughout the EU leading to a broader and more efficient financial system.

As a regulated provider of market infrastructure to global capital markets and as a marketplace organiser, Deutsche Börse Group is a key player within the establishment of the Capital Markets Union. Market infrastructure providers are well positioned to contribute to the public consultation process on which features the Capital Markets Union should encompass.

Deutsche Börse Group has elaborated the following six core principles which it considers prerequisites for a functioning Capital Markets Union.

  • revive investor trust
  • improve non-bank funding
  • promote financial stability
  • increase transparency
  • foster harmonisation, and
  • shape the supporting regulatory and supervisory environment


The Capital Markets Union represents a joint vision for policymakers, as well as industry and societal stakeholders, to further integrate and deepen financial markets across all 28 EU Member States.

Time line

In September 2015, the European Commission published an action plan on building a Capital Markets Union by 2019. While some of the implementation measures may be modest, their cumulative impact will be significant. For example, the Commission has adopted initiatives on securitisation, Solvency II, venture capital funds, covered bonds, calls for evidence as well as retail financial services.

The European Commission officials continue to strongly back the CMU Action Plan, arguing the project is more necessary than ever for the Member States: to improve financing conditions, but also to function as a risk transfer mechanism between them. On 14 September 2016, the Commission announced it would accelerate the reform.

On 20 January 2017, the European Commission launched a public consultation on the CMU, a so-called mid-term review. Market participants were invited to submit their comments by 17 March 2017. The reform is thus entering into a more ambitious second phase, tackling some challenging issues such as insolvency laws and withholding tax procedures.

CMU: the highlighted parts of the value chain are affected

Our response to EU Commission consultation on post-trade

Europe

Clearstream and Deutsche Börse Group submitted a response to the public consultation on “Post-trade in a CMU: dismantling barriers and strategy for the future”. The consultation’s aim is to gather stakeholders’ views on the state of post-trade markets, key industry trends and challenges faced by post-trade services providers and their customers.

Capital Markets Union: revised action plan

Alexandra Hachmeister

The newly published mid-term action plan defines new priorities and summarizes already reached goals towards a Capital Markets Union.

Time line: Capital Markets Union

Bull and FWB

What has been achieved so far? What are the next steps? Find the answers at a glimpse in our CMU time line.

Deutsche Börse Venture Network: access to attractive growth

Deutsche Börse Venture Network gives you access to attractive growth and later-stage or pre-IPO companies from various sectors. You can find co-investors and anchor investors here and prepare exit strategies here. At Deutsche Börse Venture Network events, you will meet representatives of growth companies as well as other investors, and can strengthen cooperation.

Deutsche Börse announces new stock exchange segment

ipo-listing01_en_330x200

Meeting our special responsibility to broaden funding sources for the real economy, the objective is to make the new segment accessible to small and medium-sized companies, in particular. The new segment represents fresh opportunities and is our response to the massive investment needs arising from digitalisation and Industry 4.0.

Deutsche Börse Venture Match: crucial assistance to growth companies

Discuss

In order to give growth companies crucial assistance in their search for suitable investors, Deutsche Börse Venture Network offers the Venture Match service.

Clearstream: services in support of the CMU action plan

The Square Luxembourg

Clearstream offers services which ease access to non-bank funding, foster market harmonisation and support securitization, e.g. issuance with Target2-Securities (T2S) and Global Securities Financing.

Further information