Government Affairs

Euronext engages in both EU and relevant domestic regulatory and policymaking processes with the aim of securing balanced regulatory & supervisory outcomes to strengthen the role our markets play in the financing of the real economy across the EU. 

This new section of the Euronext website has been established as a central database of all public Euronext positions on regulatory and supervisory issues impacting on our markets.

Listings

SME Growth Markets

SME Growth Markets

Under the Capital Markets Union project (CMU), and in order to support jobs and growth in the EU, the European Commission has set in motion several legislative and non-legislative initiatives aimed at strengthening public capital markets financing for SMEs and midcaps over the last several years.

In 2018, the European Commission published legislative proposals to build upon the creation of ‘SME Growth Markets’ in MiFID II. This follows on from an industry consultation at the end of 2017 on potential proposals for targeted amendments to MiFID II, the Prospectus Regulation and the Market Abuse Regulation (MAR) to strengthen the attractiveness of these markets for SMEs and midcaps. As the operator of Growth Markets across its jurisdictions, Euronext is greatly supportive of such initiatives.

More details on the Euronext position.

More details on the Euronext Growth markets

Indices

EU Benchmarks Regulation (BMR)

EU Benchmarks Regulation (BMR)

The EU Benchmarks Regulation, applicable as of January 2018, provides the basis for the regulation and supervision of benchmark administration in the EU. BMR provides a set of different regulatory frameworks to accommodate the full range of benchmarks present in the market. This is achieved via a categorisation of benchmarks into non-significant, significant and critical categories.

Moreover, the EU legislator also introduced a category covering Regulated-Data Benchmarks to reflect the fact that benchmarks based on regulated data (i.e. data from regulated trading venues) are less prone to manipulation as the input data is already subject to stringent pre and post trade rules in EU legislation (notably MiFID II and MAR).

Euronext supports the broad policy objectives underpinning the new EU framework. At the same time, Euronext has been obliged to avail itself of the transitional provision that BMR provides to existing benchmark providers until Jan 2020. The reason for this is that there are ongoing issues with key definitions in the legislation impacting on the applicability of the regime for Regulated-Data Benchmarks.

More details on the Euronext position

Equities

Systematic Internalisers and Tick Sizes (MiFID II)

Systematic Internalisers and Tick Sizes (MiFID II)

Following the entry into force of MiFID II and associated increase in systematic internalisers (SIs) reported volumes, EU policymakers’ attention has focused on the non-application of the tick size regime to SIs and the implications of this exemption for the effectiveness of EU public equities markets.

In the context of the Investment Firm Review (IFR), amendments have been tabled in the European Parliament to extend the application of tick sizes to SIs.

In light of these developments, Euronext calls on EU policymakers to ensure a level playing field between trading venues and SIs and supports applying the tick size regime to SI and trading venue activity up to large-in-scale (LIS).

More details on the Euronext Position

Government Affairs Team

For further information on any of the issues covered under this section, please contact the Euronext Government Affairs team via: EUGA@euronext.com