The compromise expands ESMA oversight but still requires agreement with the European Parliament.
EU finance ministers agreed on October 9 to a markets supervision overhaul that would centralize oversight and enforcement under the European Securities and Markets Authority, Bloomberg reported.
The Markets Integration and Supervision Package still requires agreement with the European Parliament before ratification. Ireland, which holds the EU’s rotating presidency, proposed the compromise to resolve disputes over direct supervision, governance and funding.
Some major trading and post-trading institutions, including Deutsche Boerse, would remain outside direct ESMA oversight under the compromise, according to European Financial Services Commissioner Maria Luís Albuquerque.
Albuquerque said the European Commission could not support the approach, arguing that it weakens governance and makes supervision more complex, costly and duplicative. She said she hoped Parliament would seek a more ambitious proposal.
France’s Roland Lescure signaled support for the revised governance arrangement. Ireland defended the agreement as a negotiated package that preserves the core objectives of the Commission’s proposal.
The overhaul is part of the EU’s longstanding effort to reduce national barriers to capital flows and increase private financing.
