The European Commission has just published its long-awaited Savings and Investments Union (SIU) strategy outlining key measures to boost competitiveness by improving the way savings and funding are channelled toward defence, technology, and green initiatives, amongst others.
This important milestone provides ISLA with a clear framework for future engagement with policy makers and regulators across the EU, as we position securities finance in the correct context and highlight its role in the development of deep and liquid markets.
Read the full SIU strategy document from the European Commission here.
As ISLA review the strategy in detail, we have summarised the key priorities and how they relate to our market:
- Encouraging Retail Participation in Capital Markets: The SIU is focused on encouraging and incentivising retail savers to hold more of their savings in capital market instruments. The objective of creating a more dynamic and efficient financial ecosystem aligns with the role of securities lending in enhancing market liquidity.
- Improving the Efficiency of Cross-Border Operations: We are pleased to see the commitment to reduce inefficiencies stemming from fragmentation and the removal of barriers to cross-border operations, this includes a review of Taxation, Post Trade Processing and Collateral legislation.
- Leveraging Best Practices & Standardisation: In an ever-changing world, the need to remain nimble is vital to remaining competitive. The strategy makes clear reference to utilising best practices across many different disciplines and implementing standards, adjacent to legislation.
We are pleased to see that much of our 2024 manifesto is fully aligned with these objectives. Our overarching message is that Europe should support the demand for the borrowing of securities through a consistent and pragmatic approach to the regulations that impact market liquidity.
Over the coming months, ISLA will continue to actively engage with the Commission, EU policymakers and other stakeholders to ensure the important role of securities lending to deep and liquid capital markets, is recognised.
