EACT Letter on Capital Market Funding

The EACT has sent a letter to key EU decision-makers on the importance of ensuring continued access to capital market funding for European corporates. We currently see that whilst reducing reliance on bank funding and increasing the role of capital markets is a stated: EU policy objective, in practice current legislative initiatives are not always supportive of this. We are particularly worried about the following developments which both discriminate against corporate bonds and ignore the important role they play in financing the real economy:

  • The forthcoming Commission proposal on the structural separation of banks, which could substantially limit the ability of financial institutions to underwrite and make markets for corporate bond issuance. Furthermore, we understand from recent reporting that unhelpful discrimination is being introduced by exempting market making for government bonds.
  • MiFID/R II, which would restrict market making of corporate bonds on certain venues - here again the planned restrictions would not apply to government bonds.
View Document

News


Vision on financial regulation for the real economy for the next 5 years

Photo from Vision on financial regulation for the real economy for the next 5 years

Corporate treasurers are financial specialists within non-financial companies - but as end-users they are often impacted by EU legislation aimed at the financial sector.

View More

EACT Newsletter - June 2019

Photo from EACT Newsletter - June 2019

The latest issue features articles on the European Parliament elections, the trade war between China and the USA, bank account management in transition plus the news that Helmut Schnabel has been re-elected Chair of IGTA.

View More

EACT Newsletter - April 2019

Photo from EACT Newsletter - April 2019

The latest issue features articles on cryptocurrencies in the Czech financial market, cybersecurity, impacts of M&A on hedging operations and much more.

View More

EACT Newsletter - March 2019

Photo from EACT Newsletter - March 2019

The newsletter features a series of special reports on the EACT Summit 2019.

View More

EACT Briefing Focus: KYC

Photo from EACT Briefing Focus: KYC

KYC has become a serious concern for EACT members over recent years: it is increasingly complex to fulfil all unstructured and nonharmonized requests. In all recent surveys, KYC is listed as a top priority for corporates and its rising costs are a source of frustration.

View More