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Payne, Jennifer; Howell, Elizabeth --- "The creation of a European capital market" [2017] ELECD 275; in Koutrakos, Panos; Snell, Jukka (eds), "Research Handbook on the Law of the EU’s Internal Market" (Edward Elgar Publishing, 2017) 241

Book Title: Research Handbook on the Law of the EU’s Internal Market

Editor(s): Koutrakos, Panos; Snell, Jukka

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781783478095

Section: Chapter 12

Section Title: The creation of a European capital market

Author(s): Payne, Jennifer; Howell, Elizabeth

Number of pages: 22

Abstract/Description:

In the 50 years since the seminal Segré report in 1966, the European capital market has developed and grown out of all recognition. The development has not been uniform: over this period there have been times of significant regulatory change, specifically during the Financial Services Action Plan (‘FSAP’) period and following the global financial crisis, but also times of relative legislative inactivity. This chapter analyses the legislative and institutional reforms that have occurred in the regulation of the European securities and financial markets. Broadly, the goal of this regulation has been the creation of a single financial market. The regulatory developments have been towards increased harmonization, greater centralization of powers at the EU level, more intensive regulation and an expansion of the regulatory perimeter. The scale of the change has been enormous, with the creation of a single rulebook post-crisis demonstrating just how far EU financial regulation has come. Although the high watermark of the post-crisis reforms may have passed, the commencement of a further round of reforms is now in prospect with the EU’s Capital Markets Union project. Further, the consistent and effective implementation and application of EU-level rules is now being promoted through an emphasis on supervisory convergence. The dominance of the EU in this area is now unarguable. It remains to be seen, however, how well the various reforms equip the Union to deal with future challenges. At the heart of the development of the European capital market is an attempt to construct and to regulate a single financial market.