Brexit, the EU and its Investment Banker: Rethinking Equivalencee for the EU Capital Market

2017 ◽  
Author(s):  
Niamh Moloney
Keyword(s):  
Capital Market ◽  
Investment Banker ◽  
The Eu

A Global Perspective on Securitized Debt

2018 ◽  
Author(s):  
Steven L Schwarcz
Keyword(s):  
United States ◽  
Financial Crisis ◽  
Capital Market ◽  
Global Financial Crisis ◽  
The United States ◽  
Global Perspective ◽  
Capital Markets Union ◽  
The Global Financial Crisis ◽  
Asset Backed Securities ◽  
The Eu

Securitisation represents a significant worldwide source of capital market financing. European investors commonly invest in asset-backed securities issued in U.S. securitisation transactions, and vice versa One of the key goals of the European Commission's proposed Capital Markets Union (CMU) is to further facilitate securitisation as a source of capital market financing as a viable alternative to bank-based finance for companies operating in the EU. To that end, this chapter explains securitisation and attempts to put its rise, its decline after the global financial crisis, and its recent CMU-inspired revival into a global perspective. It examines not only securitisation's relationship to the financial crisis but also post-crisis comparative regulatory approaches in the EU and the United States.

Capital Markets Union, Third Countries, and Equivalence

2018 ◽  
Author(s):  
Niamh Moloney
Keyword(s):  
Financial Market ◽  
Capital Markets ◽  
Capital Market ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Regulatory Requirements ◽  
Governance Regime ◽  
Financial Governance ◽  
Capital Markets Union ◽  
The Eu

The EU currently manages access by non-EU/-EEA states to the EU financial market through its ‘third country’ rules, which typically require that the financial governance regime of the state in question is ‘equivalent’ to the EU regime. However, the UK's departure from the EU by 31 March 2019 has raised questions about how UK, as a ‘third country,’ ensures access to the EU financial market, and how a related Free Trade Agreement (FTA) might be configured. This chapter first considers the current regulatory requirements governing third country access to the EU capital market and their implications for the Capital Markets Union. It then examines the evolution of third country/equivalence-related techniques internationally for capital markets and how they might be relevant for the EU. It also speculates as to how the EU's equivalence arrangements for third countries are likely to develop, including in the context of an EU/UK FTA.

scholarly journals Reflections on the EU Third Country Regime for Capital Markets in the Shadow of Brexit

2020 ◽  
Vol 17 (1) ◽  
pp. 35-71
Author(s):  
Niamh Moloney
Keyword(s):  
Capital Markets ◽  
Capital Market ◽  
Financial Services ◽  
Market Access ◽  
European Parliament ◽  
Direct Application ◽  
The Political ◽  
Economic Context ◽  
Legislative Reforms ◽  
The Eu

This article considers the recent evolution of the EU’s third country regime for capital market access in light of Brexit, the important series of legislative reforms adopted in March 2019 as the 2014-2019 European Parliament/Commission term closed, and the emergence of the European Securities and Markets Authority (ESMA) as a material technocratic influence. The article suggests that while the capital market third country regime is changing (with Brexit a key but not exclusive driver of change), it is not being radically recast, although it is tightening. The regime remains broadly based on the more-or-less liberal ‘deference’ model which has long characterised EU third-country financial services policy. But it is becoming increasingly ‘on-shored’ by means of the direct application of EU rules and by ESMA’s oversight/supervision of certain third country actors. The significantly more restrictive approach being taken to third country central clearing counterparties is a marked development, but here the political and economic context is distinct. The implications of the overall shift towards a more ‘on-shore’, centralised, and potentially restrictive access regime are considered, and a modest reform prescription is offered.

scholarly journals Capital Market Union and residential capitalism in Europe: Rescaling the housing-centred model of financialization

2017 ◽  
Vol 3 (1) ◽  
pp. 32-50 ◽  
Author(s):  
Rodrigo Fernandez ◽  
Manuel B. Aalbers
Keyword(s):  
European Commission ◽  
Capital Market ◽  
Global Financial Crisis ◽  
Housing Finance ◽  
The Political ◽  
Mortgage Debt ◽  
Mortgage Securitization ◽  
The Global Financial Crisis ◽  
The Uk ◽  
The Eu

This article examines the effects of implementing the proposals of the European Commission to institute a Capital Market Union (CMU) on the diverse landscape of residential capitalism in Europe. The CMU will bypass existing national institutional blockades that left core countries of the Eurozone, namely Germany, France and Italy, largely untouched by the housing-centred model of financialization that developed in countries like Spain, Ireland, the UK and the Netherlands. It is widely acknowledged that the rise in securitized mortgage debt contributed to the global financial crisis. As part of the CMU, the new European Commission is promoting mortgage securitization throughout the EU and thereby rescaling the political economy of housing finance that was hitherto rooted in national, institutional models. We argue that countries which ‘missed’ the previous housing boom will not be able to prevent future housing-centred financialization. CMU thus signifies a spatial expansion of the debt-led accumulation model.

scholarly journals Interest Income Tax Evasion, the EU Savings Directive and Capital Market Effects

2010 ◽  
Vol 31 (1) ◽  
pp. 151-170 ◽  
Author(s):  
Tina Klautke ◽  
Alfons J. Weichenrieder
Keyword(s):  
Capital Market ◽  
Tax Evasion ◽  
Income Tax ◽  
Market Effects ◽  
Interest Income ◽  
The Eu

Ein Schuldenerlass als Ende mit Schrecken?

2020 ◽  
Vol 69 (3) ◽  
pp. 277-307
Author(s):  
Arne Hansen ◽  
Dirk Meyer
Keyword(s):  
European Union ◽  
Capital Market ◽  
Policy Instrument ◽  
Central Banks ◽  
External Support ◽  
The European Union ◽  
European System ◽  
Equity Position ◽  
Legal Integration ◽  
The Eu

Abstract The rising debt-to-GDP ratios of the eurozone member states result not least from the coronavirus crisis. Without external support, especially with regard to Italy, but also for other Mediterranean states, access to the capital market could be seriously threatened in the medium run. The recovery fund ‘Next Generation EU’ likely directs the fundamental structures of the European Union (EU) towards a fiscal union with considerable transfer elements, while the Pandemic Emergency Purchase Programme (PEPP), which is declared as a monetary policy instrument, is even discussed as a violation of the prohibition of monetary financing. As an alternative, this contribution analyses a debt relief by the European System of Central Banks (ESCB), implemented via an EU debt agency. This construction would avoid a negative equity position of the central banks and also enable a legal integration into the EU system. The question remains: What would be the consequences of such a non-recurring step?

The Capital Markets Union and Firms’ Access to External Market-Based Finance

2018 ◽  
Author(s):  
Paola Bongini ◽  
Annalisa Ferrando ◽  
Emanuele Rossi ◽  
Monica Rossolini
Keyword(s):  
Financial Markets ◽  
Capital Markets ◽  
Capital Market ◽  
Action Plan ◽  
Business Environment ◽  
Current Debate ◽  
Capital Markets Union ◽  
Country Specific ◽  
The Eu

Firms’ access to capital markets among Eurozone countries is a challenging issue for the EU Capital Markets Union (CMU) agenda. We contribute to the current debate on the CMU by identifying the characteristics of firms that can be deemed ‘suitable’ for market-based finance. Using survey-based research, we show which firm-specific attributes and country-specific features foster a firm’s likelihood of accessing non-bank sources of finance. Our results reveal that a few Eurozone countries appear to have achieved high access to capital market financing, but there is substantial unexploited potential among firms fit for market-based finance. Our research also indicates that the macro business environment and conditions—such as GDP growth, the degree of development of domestic financial markets, and the quality of the legal and judicial enforcement system—significantly impact firms’ market suitability. Our results therefore can be linked to a number of goals of the CMU Action Plan.

Building a Capital Market – the Final Report of the High Level Forum on the EU Capital Market Union

2020 ◽  
Vol 17 (6) ◽  
pp. 601-618
Author(s):  
Katja Langenbucher
Keyword(s):  
European Union ◽  
Capital Market ◽  
Final Report ◽  
The European Union ◽  
Cross Border ◽  
High Level ◽  
Core Project ◽  
Market Infrastructure ◽  
The Eu

Abstract: Building a capital market union is a core project of the European Union, facing not only brexit but also the need to recover from COVID-19. The recently published High Level Forum Report adresses these obstacles and suggests 17 precise, mutually reinforcing and interdependent recommendations for this European endeavour. The paper summarizes the four substantive areas of the High Level Forum’s recommendations and outlines the specific measures to create a harmonized capital market union: (i) promoting financing of business, (ii) creating a uniform market infrastructure, (iii) fostering individual investor’s engagement and (iv) tackling obstacles to cross-border investment.

Sign in / Sign up

Export Citation Format

Share Document