One of the core goals of the Capital Markets Union (CMU) is to improve access to market-based sources of financing for firms irrespective of their size. The Listing Act aims at cutting red tape and making EU public capital markets more attractive for EU companies by making it easier for companies of all sizes, including small and medium-sized enterprises (SMEs), to list on European stock exchanges. This will help them grow and diversify their funding, which is particularly important for SMEs that rely excessively on bank loans.

The Listing Act includes amendments to the Prospectus Regulation, Market Abuse Regulation (MAR) and MiFIR/MiFID II, as well as a new Directive on Multiple Vote Share Structures (MVSS). The new regime narrows down disclosure obligations and simplifies the prospectus regime by standardising the format, language, and page limit across the EU. In doing so, it significantly improves the listing environment and structurally increases the attractiveness of going public, possibly paving the way for many start-ups to go public in European markets.

The original proposal was initiated by the Commission in 2024, with the co-legislators reaching a provisional agreement on the final text in February 2024. Its entry into force is pending final approval by the European Parliament and the Council of EU, with ESMA being mandated to draft level 2 and level implementing 3 measures subsequently.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.