In a working document made public on Friday 26 June, the Cyprus Presidency of the EU Council took stock of the negotiations on the ‘MISP’ package, proposed to reform the integration and supervision of capital markets. Nicosia believes that “substantial progress” has been made over the six months across all strands of the legislative proposal and identified the major political issues that will remain to be settled under the Irish Presidency.
The Presidency notes that “a broad agreement” emerged in favour of direct supervision by the European Securities and Markets Authority (‘ESMA’) of financial entities deemed ‘significant’, including the main crypto-asset service providers (‘CASPs’).
By contrast, the EU Member States remain divided on the criteria for determining whether or not financial entities are significant as regards the division of competences between ESMA and the national authorities, as well as on the governance of the future Executive Board of the European authority.
In addition to the reform of supervision, discussions remain open on several technical strands of the package, notably the rules applicable to post-trade infrastructures, central securities depositories (‘CSDs’), central counterparties (‘CCPs’), depository passporting in asset management, as well as the extension of the ‘DLT’ pilot regime.
ESMA’s financing and the sharing of costs between the European budget, national authorities and supervised entities are also highly sensitive points.
The Cyprus Presidency calls on the future Irish Presidency to build on this progress with a view to securing a Council negotiating mandate before the end of the year, in line with the objective set by the European Council (see EUROPE 13832/6).
See the working document: https://aeur.eu/f/mlw (Original version in French by Bernard Denuit)