Commission Proposals to Promote the Use of SME Growth Markets (May 2018)


On May 24th 2018 the European Commission published proposals to amend the MiFID II, Prospectus and Market Abuse Regulations’ Frameworks in order to introduce further regulatory alleviations for all companies listed on SME Growth Markets.

Euronext welcomes and supports these initiatives. It is however our experience that, while many themes are shared across countries and markets, there are important differences and nuances which require flexibility in the regulatory and supervisory approach. This is critical to enabling implementation of tailored solutions that meet the specific needs of SMEs and midcap public capital markets.

While Euronext is supportive of legislative amendment in many of the areas identified by the Commission, we believe it is important that policymakers and regulators embed this core principle in any EU legislation seeking to improve the attractiveness of EU Growth Markets for SMEs and midcaps.

As an example, we believe the legislative changes should go further in ensuring that bond-only issuers also benefit from the proposed alleviations, particularly when it comes to the Market Abuse Regulation (MAR) where the majority of requirements are tailored for equity markets.

In the aim of developing a regulatory framework supporting access to public markets for all SMEs, Euronext makes proposals to adapt definitions in the Prospectus Regulation and a number of requirements in the MAR framework to bond-only issuers.

Our detailed proposals can be accessed above.