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

Subscribe to the EACT Newsletter

News


ACT Annual Conference 2024

Join us at the ACT Annual Conference at ACC Liverpool, UK, on 21-22 May 2024. A limited number of free places are available for EACT members.

View More

EACT Award 2024

The European Associations of Corporate Treasurers (EACT) is pleased to invite its members to submit nominations for the 5th EACT Award in 2024.

View More

EACT Survey 2023

Photo from EACT Survey 2023

We are delighted to reveal the results of the 2023 EACT survey. Discover the top priorities of 250 group treasurers from European multinationals.

View More

Handover of Baton in EACT Representation of the VDT

The European Association of Corporate Treasurers (EACT) is delighted to welcome a new representative for the Association of German Treasurers (VDT).

View More

EACT Award 2023 Winner Announced

We are delighted to reveal Merck Group as the winner of the 2023 EACT Award, nominated by VDT.

View More