The World Federation of Exchanges (WFE) supports the European Commission’s Savings and Investment Union (SIU) initiative. Financial services are the lubricant of the economic engine; without them, growth falters. At this critical juncture, the WFE is particularly supportive of measures aimed at enhancing economic productivity and fostering sustainable growth across the world and in Europe.
Summary
In this statement we intend to set out the exchange industries view of the Savings and Investment Union initiative. In summary:
- Simplification and burden reduction are good objectives. Developing principles-based regulation going forward can help achieve this. The push to “go further” than international standards often harms this goal.
- Consolidation of financial market infrastructure should be led by market forces.
- Competition and fragmentation go hand in hand; it may be valuable to look again at the regulatory consistency between bilateral and multilateral venues.
- Central supervision of trading venues and CCPs is not a panacea that will attract investors to European markets so perhaps it should not be a priority.
- On the other hand, the tax-advantaged account is an excellent idea that could stimulate investment and growth.
- Investors, including retail investors, should be further empowered to make their own decisions and use derivatives to manage risk.
- A 93 page, 370 question consultation is not “targeted.”
