Share this page


AFME is providing strategic input and practical support for the EU Capital Markets Union project


AFME has been a strong supporter of the Capital Markets Union (CMU) initiative – an EU project which aims to further integrate Europe’s Member States and reduce barriers to cross-border finance.

Efficient and well-developed capital markets are essential to meeting the financing and risk management needs of EU citizens, enterprises and public authorities. Importantly, an integrated and well-functioning CMU would help strengthen EU competitiveness and prospects for economic growth and job creation.

We also believe that the development of the CMU is a pre-condition for the success of the sustainable finance agenda and, therefore, the fulfilment of the EU’s climate change objectives.

The European Commission’s new legislative cycle that began in December 2019 provides an opportunity for policymakers, market participants and other stakeholders to re-launch an ambitious plan for further integration of European capital markets.

AFME’s yearly report “Capital Markets Union – Key Performance Indicators”, developed in partnership with European and international organisations, highlighted that while there has been progress on the CMU project, there are also areas in need of improvement (see video on CMU progress in Europe).

In this context, AFME has put forward recommendations:

General recommendations



  • Establishing a comprehensive EU retail investment strategy
  • Fostering better conditions for SMEs to access equity finance
  • Advancing the EU's global leadership on sustainable finance including through the promotion of globally coordinated efforts to defining sustainability
  • Building a competitive digital single market by harnessing the potential of emerging technologies (including cloud computing, artificial intelligence and digital assets) and ensuring a level playing field among different types of participants

Recommendations in wholesale markets



  • Undertaking a recalibration of MiFID 2/R
  • Building and interconnecting securities market ecosystems (including both trading and post-trading)
  • Continue working towards creating an environment which supports a high quality and dynamic European securitisation market
  • Improving and further converging EU legal frameworks, such as insolvency, and supervisory practices
  • Recognising the role of banks and the need for well-calibrated prudential regulation to support the development of capitla markets
  • Ensuring a well-functioning third country equivalence framework
  • Deepening reflections towards a solution for a European safe asset

Key Documents





2016 & Prior


Rick Watson

Managing Director, Head of Capital Markets, Membership and Events