EU Council Presidency compromise texts on MISP

The Council of the EU has published a note from the Presidency to the Permanent Representatives Committee (COREPER) on the proposed Market Integration and Supervision Package (MISP), together with compromise texts (dated 2 October) of the three legislative proposals forming part of the package, specifically:

• the text of the proposed Regulation on settlement finality, which would repeal the Settlement Finality Directive (Directive 98/26/EC) and amend the Financial Collateral Directive (Directive 2002/47/EC)
• the text of the proposed Directive amending the Undertakings for Collective Investment in Transferable Securities Directive (UCITS), Alternative Investment Fund Managers Directive (AIFMD) and Markets in Financial Instruments Directive II (MiFID II) frameworks on the further development of capital market integration and supervision within the EU (MISP Directive)
• the text of the proposed Regulation amending a range of existing EU financial services legislation to support the further development of EU capital market integration and supervision within the EU (MISP Regulation).

The note states that the compromise texts largely preserve the original legislative proposals from the European Commission and are now presented for final agreement. There has, however, been some movement of note, particularly in relation to the Regulation of Settlement Finality, which has been amended so that the protections for third-country registered and EU systems are more closely aligned.

The note also explains that the texts intend to strengthen market integration, improve supervisory consistency, expand market transparency, and modernise trading infrastructure while balancing the differing priorities of member states. Further detail on the key elements of the proposals is set out in the Annex. The note also highlights that agreement is still needed on the European Securities and Markets Authority funding arrangements and the definition of significant trading venues before the overall package can be agreed.

An updated Council webpage states that the Economic and Financial Affairs Council is expected to agree its position on the legislative proposals at its meeting on 9 October.

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