Steven Maijoor has spoken to FESE about the challenges of cross-border regulation and supervision. He focused on market fragmentation and heralded the work of IOSCO, which will be discussed at this month’s G20 summit. He said cross-border tools have been effective and noted that, in the securities area, the EU had granted equivalence to 35 jurisdictions under various measures.
He spoke of ESMA’s recent decision to fully exclude shares with GB ISINs from the share trading obligation – but hopes that there will still be a deal that will enable equivalence between the UK and EU, which would enable open markets to continue. He is not happy, though, that the UK has said it will disclose its plans for applying the UK STO only once it is clear there will be no deal – he said market participants should be given enough time to prepare.
Continuing the Brexit theme, he said it is vital that there is an appropriate framework for third-country regulation and supervision, and that the EU needs to update its approach, as it is doing under EMIR 2.2. He says the system needs to be more proportionate