On July 1, ISDA and 11 other trade associations published a statement on enhancing the EU legislative and supervisory framework to support market competitiveness.

The statement highlights a significant opportunity to strengthen the EU’s regulatory and supervisory framework through the Market Integration and Supervision Package. It stresses that improving how financial services legislation is developed, implemented and supervised is essential to deliver the ambitions of the Savings and Investments Union. Key priorities include reducing legal uncertainty, ensuring robust cost–benefit analysis and avoiding unnecessary complexity to support innovation and attract global investment to EU capital markets.

The statement calls for embedding a competitiveness objective within the European Securities and Markets Authority’s (ESMA) mandate, ensuring regulatory decisions fully reflect their impact on market attractiveness. It also urges better sequencing of EU financial legislation, so obligations in primary legislation apply only once technical standards are finalized, alongside stronger no-action relief powers for ESMA.

The associations also emphasize the need for efficient, coherent supervision that avoids duplication and fragmentation, supporting deep, liquid and internationally competitive EU financial markets.