COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Further development of capital market integration and supervision within the Union
Date: 2025-12-04
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: approximation of laws, capital markets union, financial control, financial instrument, financial legislation, financial services, financial supervision, investment, investment company, single market

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 4.12.2025  COM(2025) 940 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Further development of capital market integration and supervision within the Union  
 
 
1.  European Union competitiveness and capital-market integration 

In a rapidly evolving global landscape, the European Union must sharpen its competitive edge 
to unlock widespread benefits to people and businesses across the EU. This can be achieved by 
tapping the full benefits of the EU’s diverse and skilled workforce, its innovative companies, 
its strength in many key strategic industries, and its commitment to decarbonise and to make 
the economy more sustainable. Despite many reasons to be optimistic, the EU economy has 
been underperforming in recent years due to structural weaknesses that hold it back compared 
to international competitors and constrain its strategic autonomy. Compounding the issue is the 
peculiar fact that moving money to non-EU countries is often easier than transferring it within 
EU Member States. As stated in the Draghi and Letta reports and in the 2024-2029 Commission 
political guidelines1, urgent action is required to improve economic performance and to equip 
the EU with the tools to shape its own future2. 

Reviving  the  EU’s  economy  and  strengthening  its  international  position  are  central  to  the 
European Commission’s mandate. The Competitiveness Compass3 sets out a comprehensive 
plan to strengthen the EU’s economy and harness its potential, with the strategy for a Savings 
and  Investments  Union  (SIU)4  acting  as  a  key  enabler  of  this  plan.  The  European  Council 
(EUCO) agrees that, to tackle the challenges to the EU’s competitiveness, it is vital to create 
truly  integrated  and  deeper  European  capital  markets  that  are  accessible  to  all  people  and 
businesses across the EU5. To this end, the EUCO also called on the Commission to improve 
the  convergence  and  efficiency  of  capital  market  supervision  across  the  EU  and  reduce 
fragmentation6.  In  addition,  the  European  Parliament  has  adopted  a  report  welcoming  the 
Commission’s announcement of an ambitious package of legislative proposals to strengthen 
the trading  and post-trading  ecosystem  in  the European Union,  to  remove barriers to  cross-
border activity and make the framework fit for new technologies7.  

1 Europe’s choice Political guidelines for the next European Commission 2024−2029; e6cd4328-673c-4e7a-8683-
f63ffb2cf648_en  
2 Integrating and deepening EU capital markets will bring benefits for investors, businesses and the broader EU 
economy, by providing access to a wider array of financial opportunities and effectively mobilising savings for 
productive  investments. The IMF indicates that for financial services alone, internal barriers within the single 
market resemble a tariff exceeding 100%. Holste and Bergström (2025) suggest that a fully unified capital market 
over the past decades could have increased EU GDP by EUR 7.8-8 trillion in 2024. Additionally, IMF simulations 
imply  that  a  robust  capital  markets  union  could  contribute  to  one-third  of  the  single  market's  total  benefits, 
potentially raising GDP levels by one percentage point.  
3 https://commission.europa.eu/topics/eu-competitiveness/competitiveness-compass_en 
4  Savings  and  investments  union  strategy  to  enhance  financial  opportunities  for  EU  citizens  and  businesses  - 
Finance.  The  initiatives  included  in  the  SIU  strategy  cover  citizen  and  savings,  investments  and  financing, 
integration and scale, efficient supervision in the  single  market as well competitiveness and integration of the 
banking sector. They are designed to reinforce each other. For instance, the proposed financial literacy strategy, 
the recommendation on savings and investment accounts and the measures on supplementary pensions aim to give 
Europeans more opportunities to build their wealth by investing in capital markets. However, these measures will 
not be effective if barriers to EU capital market integration are not removed, as these barriers continue to result in 
high costs and lower returns for investors. 
5 https://www.consilium.europa.eu/media/viyhc2m4/20250320-european-council-conclusions-en.pdf 
 6 The European Council calls on the Commission: (i) to ensure convergent supervisory practices; (ii) to complete 
the assessment of and the work on the conditions for enabling the European Supervisory Authorities to effectively 
supervise the most systemic relevant cross-border capital and financial market actors, and, on the basis of that 
assessment, to put forward, as appropriate, a proposal on supervision; (iii) to swiftly remove barriers to market-
led consolidation of market infrastructure and to cross-border investment; (iv) to streamline existing rules and 
eliminate duplication, clarify regulatory provisions and reduce the cost of compliance and reporting. 
7 Report on facilitating the financing of investments and reforms to boost European competitiveness and creating 
a Capital Markets Union (Draghi Report) | A10-0124/2025 | European Parliament, points 26 and 29. The report 

1 

 
 
 
 
 
 
Despite  past  integration  efforts8,  the  EU’s  capital  markets  remain  too  fragmented  and 
inefficient to mobilise the vast  pool  of EU savings to  meet  the  EU’s  significant investment 
needs, notably in key strategic sectors. Given the pressing need to tackle inefficiencies in EU 
capital markets, the Commission recognises that it must substantially revisit certain pieces of 
legislation, including those recently closed. This is essential to remove persistent barriers and 
ensure that reforms align with the evolving financial landscape.  

Furthermore, initiatives to integrate capital markets will prove beneficial for the EU economy, 
including  for  companies  which  contribute  to  the  EU’s  strategic  priorities.  Public  resources 
alone are insufficient to address the financing gap that many companies, in particular  SMEs, 
startups  and  scaleups,  are  confronted  with.  The  EU  has  introduced  a  range  of  financial 
instruments  (such  as  Invest  EU  and  the  EIC  Fund)  and  programs  under  the  auspices  of  the 
European Investment Bank and European Investment Fund, to mobilise more private capital. 
Alongside  these  public  initiatives,  achieving  true  progresses  in  the  development  of  well-
functioning and well-integrated EU capital markets is the best way to attract private investors, 
and private capital, towards EU projects and priorities.  

Barriers to the cross-border provision and use of financial services, also linked to divergence 
in national supervisory practices, continue to  hinder the creation of a true single market for 
capital,  preventing  the  formation  of  large  liquidity  pools  and  limiting  the  potential  for 
economies  of  scale.  There  is  a  need  for  greater  ambition  in  promoting  market  integration, 
requiring a combination of policy actions at Member-State and EU levels. These actions, as set 
out in the SIU strategy, aim to make it easier for people across the EU to grow their wealth by 
participating  in  more  integrated  capital  markets  while  at  the  same  time  increasing  the 
investment capacity of the EU.  

The European Commission is therefore putting forward an ambitious and forward-looking  set 
of legislative proposals9 to remove these barriers, with the objective of facilitating investors’ 
access  to  a  wide  range  of  investment  opportunities  and  enabling  companies  to  raise  capital 
across borders. The delivery of this very substantial legislative package, only nine months after 
its announcement in the SIU strategy, underscores the political importance and urgency of the 
initiative. The package focuses on proposals to remove barriers that fragment the single market, 
in a number of key market segments including trading, post-trading  and asset management, 
while also driving innovation and enhancing supervision in these areas.  

The Commission  acknowledges the need to  tackle barriers to  market  integration elsewhere, 
such  as  divergences  in  the  legal  frameworks  governing  tax,  corporate  law,  insolvency,  and 
securities, or the exercise of shareholders rights across borders. The Commission will propose 
a 28th regime for companies operating across the single market and may consider additional 
initiatives in these areas. The Commission will also publish in 2026 a comprehensive report on 
the state of the banking system in the Single Market, including an evaluation of the sector's 

expects that such a proposal could help overcome market fragmentation in the EU. It supports the Commission’s 
intention to propose measures to strengthen supervisory convergence tools and make them more effective, and to 
achieve more unified direct supervision of capital markets by transferring certain tasks to the EU level. 
8 The Savings and Investments Union builds on progress already made under two Capital Markets Union Action 
plans  and  parallel  efforts  to  develop  the  Banking  Union:  European  Commission,  'Action  Plan  on  Building  a 
Capital Markets Union,' COM(2015) 468 final, 30 September 2015 and 'A Capital Markets Union for People and 
Businesses – New Action Plan,' COM(2020) 590 final, 24 September 2020 .  
9 For more details on the list of proposals, see Appendix. 

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competitiveness,  which  will  inform  a  positive  and  forward-looking  reform  agenda  for  the 
banking sector as well. This package is consistent with the Single Market Roadmap to 2028 
announced in the 2025 State of the Union address by President von der Leyen and the broader 
efforts  of  the  Commission  to  develop  European  markets  by  reducing  the  barriers  affecting 
goods, services, people and capital10. 

2.  Achieving a true single market for capital: removing barriers to integrated markets 

and simplifying access for businesses and people across the EU 

Barriers  to  integrated capital  markets  arise from  differences  in  regulatory approaches, often 
reflecting  the  use  of  discretions  in  transposing  and  interpreting  EU  directives  and  varying 
approaches to supervision. These barriers unnecessarily complicate the cross-border operations 
of financial market participants. This legislative package seeks to remove such barriers in the 
key  capital-market  segments,  enabling  companies  to  more  easily  raise  capital  and  provide 
greater access for investors to a wide range of investments and services. Removing barriers to 
market integration must be a joint effort involving both the EU and national levels and should 
ultimately  be  market-driven.  Integration  must  be  achieved  while  also  maintaining  financial 
stability,  market  integrity,  and  investor  protection,  thereby  ensuring  that  the  EU  financial 
market remains safe and resilient. 

Simplification,  in  particular  administrative  burden  reduction,    is  crucial  for  businesses  and 
investors. Accordingly, this package also focuses on streamlining regulatory requirements to 
make cross-border activities more cost-effective. Simplification will be achieved in a number 
of ways: transitioning certain provisions from directives to regulations; eliminating scope for 
nationally  imposed  ‘gold-plating’  measures;  refining  Level  2  empowerments;  streamlining 
overlapping,  costly  and  inefficient  supervisory  arrangements;  and  more  generally  removing 
barriers  in  EU  and  national  frameworks  for  market  operators  and  investors.  Importantly,  a 
genuine single market for capital – free from barriers and bolstered by efficient, harmonised 
supervision – would of itself be a significant simplification that can be delivered to people and 
businesses across the EU.  

This  package  focuses  on  removing  the  barriers11  that  stem  from  rules  and  supervisory 
approaches across the capital market ecosystem. Financial market infrastructures are essential 
for the free movement of capital and services but continue to work largely in silos, limiting 
synergies  and  implying  costly  duplications.  The  asset  management  industry  remains  highly 
fragmented, with many national funds lacking the scale necessary to compete with much larger 
funds operating in the EU but based in third countries. This comprehensive approach ensures 
that the package covers the backbone of capital-market financing, serving as essential channels 
that link investors with businesses seeking financing. 

2.1. Comprehensive action towards capital market integration  

Actions  to  remove  barriers  for  groups  -  In  all  the  sectors  covered  by  this  package,  groups 
operating across Member States often face duplicative regulatory requirements, predominantly 
due to insufficiently harmonised rules. This fragmented regulatory landscape is inefficient, as 
it requires firms to invest considerable resources in navigating different legal frameworks, often 
duplicating efforts and compliance measures for each Member States in which they operate. 

10 COM(2025) 500 final - The Single Market: our European home market in an uncertain world A Strategy for 
making the Single Market simple, seamless and strong. 
11 For more details, please see the Impact assessment on market integration and supervision.  

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These  inefficiencies  hinder  optimal  resource  allocation  and  synergies  within  groups.  Many 
resources that financial services firms could dedicate to value creation, growth and innovation, 
are diverted to manage regulatory complexities, resulting in increased operational costs, which 
are ultimately passed on to end clients and investors. This package seeks to remedy these issues 
by  eliminating  unnecessary  regulatory  duplications  and  divergences  without  weakening  the 
financial  soundness  of  financial  services  groups  or  investor  protection.  This  will  result  in 
making markets more efficient, drive down operational costs, and allowing financial services 
firms to offer more competitive services and products to EU investors.  

Actions to remove barriers to passporting - This package also seeks to ensure that passporting 
functions effectively to facilitate operations across Member States. Based on the principles of 
freedom  to  provide  services  and  freedom  of  establishment,  passporting  should  allow 
investment funds and financial services firms authorised in one EU Member State to seamlessly 
market  their  products  and  offer  their  services  across  the  single  market  without  needing  to 
comply with additional national  rules  or authorisations in  each  Member  State. This  aims  to 
simplify processes  and  improve  market  access, amplifying opportunities for  companies and 
investors  across  the  EU.  However,  in  practice,  the  current  passporting  framework  does  not 
operate as efficiently as intended, leaving room for improvement. Inconsistent application of 
rules  by  national  authorities  and  unjustified  additional  national  requirements  still  make 
passporting  a  theoretical  possibility  rather  than  a  functional  tool  for  many  businesses.  This 
issue  is  particularly  acute  for  regulated  markets,  central  securities  depositories  (CSDs), 
undertakings for collective investment in transferable securities (UCITS) funds and alternative 
investment fund managers (AIFMs) that market alternative investment funds (AIFs) across the 
EU. The lack of a fully functional EU passport is a missed opportunity. Measures to implement 
effective passporting and facilitate cross-border operation include clearer rules for passporting 
for  trading  venues  and  CSDs,  the  new  pan-European  market  operator  licence12,  the  new 
passporting upon authorisation regime for UCITS funds and AIFMs13, and the possibility for 
companies  to  issue  securities  across-borders14.  These  measures  will  simplify  single  market 
entry, reduce operational costs, and make it easier for investors and companies to capitalise on 
a truly unified single market.  

Actions  to  remove  barriers  to  interconnection  -  The  package  aims  to  simplify  EU-level 
requirements  and  enhance  interconnectedness.  It  will  do  so  by  harmonising  rules  related  to 
authorisation, operations, communication and marketing for trading venues, central securities 
depositories  and  asset  managers.  The  current  settlement  tools  will  be  improved,  and  EU 
settlement infrastructures will need to be able to settle in TARGET 2-Securities (T2S15) for 
those currencies that it offers settlement in. In addition, the package will strengthen open access 
measures  and  simplify  brokers’  direct  access  to  trading  venues.  Simplified  and  harmonised 
requirements  will  reduce  compliance  costs  and  enable  market  participants  to  operate  more 
efficiently across the EU. 

12 A new licence for ‘Pan-European Market Operators’ will be introduced for cross-border market operators to 
allow for the operation of trading venues in multiple Member States on the basis of a single licence. 
13  A  new  “passporting  upon  authorisation”  regime  will  grant  UCITS  funds  and  AIFs  (through  their  AIFMs) 
immediate single market access to their chosen Member States upon authorisation. 
14 To improve freedom of issuance, the possibility of Member States to impose additional requirements on issuers 
that act as a barrier to cross-border issuance will be limited. 
15 T2S is a platform launched in 2015 and operated by the Eurosystem that offers harmonised and streamlined 
securities settlement in central bank money to facilitate cross-CSD settlement. 

4 

 
 
 
 
 
 
Actions to remove barriers to DLT innovation - This package also emphasises the importance 
of  innovation  in  the  financial  sector,  specifically  through  Distributed  Ledger  Technology 
(‘DLT’).  These  innovations  have  the  potential  to  improve  financial  services  for  people  and 
businesses  across  the  EU.  Therefore,  the  package  amends  existing  legislation  to  remove 
barriers and complexities hindering DLT uptake in the EU financial sector. The revised DLT 
Pilot  regime  will  help  with  widespread  experimentation  with  DLT  while  yielding  valuable 
learnings for future policy making. In addition to expanding the scope and flexibility of the 
DLT Pilot Regime, the package will modernise post-trade legislation to better accommodate 
new technologies.  

By  tackling  these  inefficiencies,  ensuring  that  passporting  operates  as  intended,  enabling 
groups  active  in  several  Member  States  to  streamline  their  operations  and  build  synergies, 
improving interconnection and promoting DLT innovation, this package seeks to unlock these 
potential benefits, thus providing a real boost to EU capital markets. 

2.2. Enhancing EU supervision: a cornerstone for market integration and scale  

An  integrated  EU  architecture  for  supervision  is  essential  to  support  a  single  market  for 
financial services. Financial services firms active in the same areas should be able to provide 
their  services  and  activities  across  the  EU  without  the  barrier  of  divergent  supervisory 
approaches that fragment the market. Currently, supervisory actions are not equally predictable 
across the EU and do not holistically assess providers’ cross-border activities. Coupled with 
insufficient  use  of  the  existing  supervisory  convergence  tools  available  to  the  European 
Securities and Markets Authority (ESMA), such supervisory barriers add to the costs of doing 
business  across  borders,  create  legal  uncertainty  and  an  unlevel  playing  field,  and  make 
investing in the EU more difficult and more expensive overall.  

New  areas  for  ESMA  supervision  -  As  market  integration  deepens,  the  EU  supervisory 
framework  must  evolve  accordingly.  Pooling  supervisory  powers  at  EU  level  will  promote 
deeper  market  integration  and  contribute  to  the  smooth  and  efficient  functioning  of  capital 
markets,  as  barriers  are  lifted  and  cross-border  activity  increases.  Supervisory  reform  will 
include  transferring  direct  supervisory  responsibilities  to  ESMA  for  certain  significant  and 
cross-border  entities  in  trading  and  post-trading16,  as  well  as  for  entities  in  new  areas  like 
crypto-asset  service  providers.  National  authorities  should  support  ESMA  in  performing  its 
direct  supervisory  tasks.  ESMA  will  also  play  a  stronger  role  in  the  convergence  and 
coordination of the supervision of large asset managers’ groups and investment funds17 in the 
single market. This reform of supervisory arrangements will facilitate the enforcement of the 
single rulebook, ensure a comprehensive view, facilitate informed decision-making and allow 
the most efficient use of resources. Revisiting ESMA’s governance, including with a newly 

16 To identify which entities fall under direct supervision, a set of clear criteria has been drawn up, taking into 
account size/systemic importance, and the cross-border activity or pan-European group dimension of CCPs, CSDs 
and trading venues. Additionally, to ensure a level playing field, CSDs and CCPs that are part of a group with at 
least one member subject to ESMA supervision would also be subject to ESMA supervision. Similarly, all trading 
venues operated within a group subject to ESMA supervision would be subject to ESMA supervision. 
17 New tools and mechanisms at ESMA’s disposal to tackle barriers to cross-border activities include the mandates 
to  organise,  together  with  NCAs,  joint  assessment  at  group  level  of  asset  managers  and  the  creation  of 
collaboration platforms, whilst strengthening ESMA’s binding mediation role that it could also exercise on its 
own initiative. In addition to having this power at its disposal, ESMA  is also required to initiate mediation in 
clearly defined cases, ensuring its effective use. 

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created Executive Board18, and developing a sustainable, fair, and adaptable funding model are 
necessary to cater for its expanded role.  

ESMA  supervisory  convergence  tools  -  The  package  also  seeks  to  enhance  the  use  and 
effectiveness of existing ESMA supervisory convergence tools, such as the breach of Union 
law procedure, no-action letters, peer reviews, settlement of disagreement between competent 
authorities,  and  the  delegation  of  tasks  and  responsibilities.  It  proposes  to  introduce  new 
horizontal  tools,  such  as  collaboration  platforms  and  a  mechanism  for  mutual  assistance 
between  national  supervisors  to  facilitate  the  cross-border  recovery  of  fines.  Furthermore, 
ESMA  is  being  equipped  with  new  convergence  powers  to  ensure  effective  supervision  of 
cross-border financial services and increase trust in the passporting system. The new powers 
will allow ESMA to require competent authorities to seek its opinion and require corrective 
actions in case of serious supervisory shortcomings and to suspend the rights of an entity to 
provide services on a cross-border basis if it has committed a serious infringement of EU law. 

Macroprudential  oversight  and  risk  monitoring  -  Finally,  to  build  trust  in  the  non-bank 
financial  sectors,  the  Commission  recognises  the  need  for  holistic,  simpler  and  well-
coordinated macroprudential oversight and risk monitoring across the financial system. The 
Commission consulted stakeholders19 on the adequacy of the existing framework in detecting 
and managing systemic risks stemming from non-bank financial intermediation activities, amid 
growing  complexity  and  interconnectedness  across  banks  and  non-banks.  As  a  result,  and 
beyond this package, the Commission is considering targeted actions for 2026 to strengthen 
macroprudential oversight and enhance the EU financial system’s resilience. 

The market integration and supervision package focuses on the role of ESMA as the authority 
responsible for securities and markets,  which is  the  EU’s most urgent  priority at  this stage. 
However, the Savings and Investments Union also covers other sectors of the EU’s financial 
system,  which  may  require  further  reforms  to  enhance  the  roles  of  the  other  European 
Supervisory Authorities, to further strengthen financial supervision in the EU. 

3.  Need for action by all stakeholders 

The SIU is a shared responsibility of EU institutions, Member States and market participants 
and  requires  commitment  and  sustained  joint  actions  by  all  stakeholders.  While  EU-level 
measures are needed to remove barriers in the single market, these should be complemented 
by actions at national level. The European Commission is determined to take decisive action 
against  illegal  practices  and  national  rules  that  unduly  hinder  market  integration  and  cross-
border activity. By enforcing EU law and the EU’s fundamental freedoms in particular, the 
Commission will ensure that all rules that underpin a fair and open internal market for capital 
are fully implemented and respected. 

The Eurosystem also has a significant role to play, especially in the area of post-trading. This 
is  particularly  the  case  regarding  the  promotion  of  the  use  of  Target2-Securities  (T2S)  for 
securities settlement. Further harmonisation and integration efforts building on the use of that 
common  platform  could  significantly  contribute  to  the  development  of  the  Savings  and 
Investments Union. This could also be supported by increasing the number of currencies that 

18 Supervisory decisions would be taken by a newly created Executive Board composed of independent members 
with a non-objection procedure by the Board of Supervisors. 
19 https://finance.ec.europa.eu/document/download/db0e482b-12b8-43d5-ad8d-
b54e6af4b315_en?filename=2024-non-bank-financial-intermediation-summary-of-responses_en.pdf. 

6 

 
 
 
 
 
 
 
 
 
T2S  serves  with  the  cooperation  of  the  central  banks  of  issue  of  those  currencies,  and  by 
ensuring the compatibility of central bank money settlement with the use of new technologies, 
such as DLT. At the same time, the Commission calls on the Eurosystem to explore whether 
changes to the pricing of T2S services and governance of T2S could increase the use of that 
platform and foster greater efficiency and innovation. The Commission invites the Eurosystem, 
and the ESCB more generally, to continue with their efforts towards harmonising standards for 
securities settlement and asset servicing, as well as for market participants to implement such 
agreed harmonised standards as swiftly as possible. 

Finally, the financial industry must also play its role by ensuring the timely uptake of proposed 
actions and encourage market-driven initiatives that support the objectives of the SIU. 

4.  Conclusion 

The European Commission has responded decisively to calls from the highest political levels 
to take ambitious measures to fully enhance the EU's competitiveness and global standing. The 
SIU will be  crucial  in  creating further opportunities for  EU  citizens to  invest  seamlessly in 
capital  markets,  boosting  competitiveness,  allowing  market  forces  to  drive  the  process  of 
financial-market  development  and  integration  and  thereby  create  deeper  pools  of  capital  to 
support the financing of the EU’s economy. This package of legislative initiatives in the areas 
of securities trading and post-trading, asset management and supervision will be critical to the 
overall success of the SIU strategy. The measures proposed are complementary and it will be 
important to maintain the integrity and coherence of the package. The package combines the 
modernisation of the EU legal and supervisory framework with action to ensure compliance 
with  that  framework.  This  is  a  shared  responsibility  that  calls  for  joint  actions  of  EU 
institutions, Member States and private sector stakeholders.  

Seizing the current political momentum to dismantle longstanding barriers to capital market 
integration  is  crucial.  The  Commission  calls  on  the  European  Parliament  and  the  Member 
States to negotiate this package swiftly and effectively and to maintain its integrity, coherence 
and ambition. By doing so, this package will deliver much needed and tangible benefits to all 
people and businesses across the EU. 

7 

 
 
 
 
 
 
 
 
Appendix – Legislative package  
The  legislative  package  on  market  integration  and  supervision  comprises  three  legislative 
proposals, namely:  
1)  Master Regulation 
The Master Regulation amends the following existing pieces of EU capital market legislation:  
-  Regulation  (EU)  No  1095/2010  of  the  European  Parliament  and  of  the  Council  of  24 
November  2010  establishing  a  European  Supervisory  Authority  (European  Securities  and 
Markets Authority);  
- Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 
on OTC derivatives, central counterparties and trade repositories;  
-  Regulation  (EU)  No  600/2014  as  regards  the  harmonisation  of  rules  applicable  to  the 
functioning  of  trading  venues,  the  facilitation  of  the  cross-border  provision  of  services  by 
operators of trading venues, the further development of the consolidated tapes and the removal 
of barriers to mutual access between trading and post-trading infrastructures; 
- Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 
on  improving  securities  settlement  in  the  European  Union  and  on  central  securities 
depositories; 
- Regulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 
2015 on transparency of securities financing transactions and of reuse; 
- Regulation 2019/1156/EU as regards the cross-border marketing of investment funds; 
- Regulation (EU) 2021/23 of the European Parliament and of the Council of on a framework 
for the recovery and resolution of central counterparties; 
- Regulation (EU) 2022/858 of the European Parliament and of the Council on a pilot regime 
for market infrastructures based on distributed ledger technology;  
-  Regulation  (EU)  2023/1114  as  regards  the  authorisation  and  supervision  of  crypto-asset 
service providers in the single market; 
- Regulation (EC) 1060/2009 of the European Parliament and of the Council of 16 September 
2009 on credit rating agencies;  
- Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 
on indices used as benchmarks in financial instruments and financial contracts or to measure 
the performance of investment funds; 
- Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 
2017 laying down a general framework for securitisation and creating a specific framework for 
simple, transparent and standardised securitisation;  
-Regulation (EU) 2023/2631 of the European Parliament and of the Council of 22 November 
2023  on  European  Green  Bonds  and  optional  disclosures  for  bonds  marketed  as 
environmentally sustainable and for sustainability-linked bonds; and  
- Regulation (EU) 2024/3005 of the European Parliament and of the Council of 27 November 
2024 on the transparency and integrity of Environmental, Social and Governance (ESG) rating 
activities. 
2) Master Directive  
The Master Directive amends the following pieces of EU capital market legislation:  
-  Directive  2009/65/EC  and  Directive  2011/61/EU  as  regards  market  integration  and 
supervision of  UCITS, management companies and AIFMs and the provision of depository 
services; and 

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- Directive 2014/65/EC as regards the harmonisation of rules applicable to the authorisation of 
regulated markets and to the functioning of trading venues.   
3) Settlement Finality Regulation 
- Proposal for a Regulation of the European Parliament and of the Council on settlement finality 
and repealing Directive 98/26/EC and amending Directive 2002/47/EC on financial collateral 
arrangements. 

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