The Cyprus Securities and Exchange Commission (CySEC) has brought attention to the European Commission's targeted consultation on the integration of EU capital markets. Published on 15 April 2025, the consultation invites financial institutions and other market participants to provide feedback.

The purpose of this consultation is to identify obstacles to financial market integration across the EU, in line with the Savings and Investments Union (SIU) strategy, which was introduced on 19 March 2025.

Consultation Focuses on Simplification, Trading, Post-Trade

The consultation covers a range of topics. The first section focuses on simplification and burden reduction, aiming to address issues related to simplifying the regulatory framework and reducing burdens across trading, post-trade, and asset management activities.

The second section, trading, seeks feedback on measures to improve liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term consolidation across trading venues, enhance access to market infrastructures, and ensure better execution quality.

In the third section, post-trading, the European Commission is looking for concrete examples of barriers to cross-border settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term, issues related to new technologies and market practices, and challenges arising from unharmonised or inefficient market practices.

You may find it interesting at FinanceMagnates.com: CySEC Informs Firms as EU Commission Targets T+1 Securities Settlement by 2027.

CySEC Seeks Feedback on Supervision, Barriers

The fourth section addresses horizontal barriers to trading and post-trading infrastructures. The European Commission is interested in feedback regarding barriers identified in the 2017 European Post-Trade Forum report, as well as operational synergies, the issuance of financial instruments, and innovations like the DLT Pilot Regime and asset tokenisation.

Announcement - The European Commission consults on proposed transformative amendments to the regulation and supervision of the financial services sectorhttps://t.co/Mgl6kNMgui

— CySEC - Cyprus Securities and Exchange Commission (@CySEC_official) April 25, 2025

The fifth section on asset management and funds explores obstacles to accessing the EU single market for asset management and investment funds. It also seeks input on the effectiveness of existing authorisation and passport systems and the potential for simplifying these processes.

The sixth section proposes a centralisation of supervision. The European Commission suggests transferring the supervision of certain entities, such as central counterparties, central securities depositories, trading venues, asset managers, and crypto asset service providers, to European Supervisory Authorities (ESAs).

EU Consultation on ESAs Governance and Funding

Finally, the consultation includes horizontal questions on the supervisory framework. This section seeks feedback on the governance models of the ESAs, including the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the Anti-Money Laundering Authority (AMLA).

It also discusses new supervisory convergence tools and the potential for an enhanced role of ESAs, as well as their funding.