On 12 June 2026, the European Parliament’s Economic and Monetary Affairs (ECON) Committee published draft reports containing draft amendments to the European Commission’s (Commission) Market Integration and Supervision (MISP) package.
The MISP package is central to the Commission’s Savings and Investments Union (SIU) strategy, which aims to create an integrated and connected EU-wide capital market. It seeks to simplify the EU’s regulatory and supervisory framework by moving supervision to the EU level and further harmonising regulatory frameworks to remove barriers for financial market participants to provide cross-border services. A general overview of the MISP package can be found in our previous blog post.
The draft legislative package proposes changes to different pieces of EU legislation. These changes are contained in three proposals, namely:
- A proposed Omnibus Regulation amending the:
- Regulation establishing the European Securities and Markets Authority (ESMA)
- European Markets Infrastructure Regulation (EMIR)
- Markets in Financial Instruments Regulation (MIFIR)
- Central Securities Depositories Regulation (CSDR)
- Distributed Ledger Technology Pilot Regulation (DLTPR)
- Markets in crypto-asset Regulation (MiCA)
- Cross-Border Distribution of Funds Regulation (CBDR)
The proposed Omnibus Regulation also makes certain targeted amendments to other pieces of EU legislation to align them with the proposed changes to the ESMA Regulation. This includes the Benchmark Regulation and the Securities Financing Transactions Regulation.
2. A proposed Omnibus Directive amends the:
- Undertakings for Collective Investment in Transferable Securities (UCITS) DirectiveAlternative Investment Fund Managers Directive (AIFMD)
- Markets in Financial Instruments Directive II (MiFID II)
3. A proposed Regulation replacing the Settlement Finality Directive and amending the Financial Collateral Directive.
Each of the three proposals was assigned to a different ECON Committee rapporteur:
- The draft report on the MISP Omnibus Regulation contains rapporteur Markus Ferber’s (European People’s Party) proposed amendments.
- The draft report on the MISP Omnibus Directive contains rapporteur Eero Heinäluoma’s (Socialists & Democrats) proposed amendments.
- The draft report on the proposed Regulation on Settlement Finality contains rapporteur Giovanni Crosetto’s (European Conservatives and Reformists) proposed amendments.
Each of the draft reports sets out proposed legislative amendments and these are summarised below.
1. MISP Omnibus Regulation
In his explanatory statement, Ferber emphasises the need for an ambitious market integration agenda and calls for greater ambition than the Commission’s original proposal. He proposes a secondary competitiveness objective and a stronger supervisory mandate for ESMA.
- Competitiveness: A key Ferber proposal is a secondary competitiveness objective for ESMA. In addition, the proposed ESMA supervisory handbook would be further strengthened by including expectations on competitiveness and innovation capacity of EU financial markets, shaping day-to-day supervisory expectations across all Member State competent authority (NCA) interactions. ESMA’s annual report would be enhanced so that it assesses the European Supervisory Authority’s contribution to EU capital markets competitiveness. Ferber also proposes enhancements to no-action relief by adding level playing field considerations—such as disproportionate implementation burdens or material competitive disadvantages—as distinct grounds for action by ESMA. When drafting regulatory technical standards (RTS) or implementing technical standards (ITS), ESMA would consider the impact on international competitiveness of EU market participants and capital markets.
- ESMA governance: Ferber proposes quite extensive changes to ESMA’s governance with an Executive Board of five independent members with double voting rights in the Board of Supervisors. Executive Board members must have capital markets experience.
- Reporting: Ferber proposes to formalise the “report once”-principle through an explicit requirement in the ESMA Regulation.
- Trading and market structure: Ferber proposes extensive changes in the trading and markets space by making systematic internalisers (SIs) more transparent by requiring them to publish rulebooks disclosing access criteria, execution processes and fee structures. He also proposes mandatory minimum price improvement of one tick size over the best lit market price for SI executions, extended from retail to all orders. The liquid market determination would be redesigned to increase SI-traded instruments subject to pre-trade transparency. ESMA would assess whether large SIs should be subject to direct supervision. Pre-trade transparency would be extended to hybrid trading systems and the EMIR intragroup transaction reporting exemption would be applied at group level.
- Consolidated tape: Notably, Ferber proposes deleting the Commission’s list of core market data for dissemination by the equity and exchange traded fund (ETF) consolidated tape (CT), deeming it premature as the equity CT is not yet live.
- Post-trade infrastructure supervision: A key proposal is the extension of ESMA’s supervision to all EU central counterparties (CCPs) and central securities depositories (CSDs), not only significant ones. The settlement framework would also be updated to ensure distributed-ledger technology (DLT) based recording satisfies the book-entry obligation.
- Digital finance: Viewing the Commission’s DLT Pilot Regime treatment as too cautious, Ferber proposes reframing it as a permanent mainstream infrastructure regime with significantly raised caps. The sunset clause would be replaced with an ESMA graduation assessment mechanism. Unlike the approach to post-trade infrastructure, Ferber proposes keeping small crypto-asset service providers (CASPs) under NCA supervision, with only significant cryptoasset service providers moving to direct ESMA supervision. A framework for multi-issuer e-money token arrangements is also proposed.
- Asset management: The delegated act empowerment on market communications under the CBDR would be amended so that it is more principle-based and sector-diverse. A single central notification platform for asset managers is also proposed, replacing notifications to individual NCAs.
2. MISP Omnibus Directive
Rapporteur Heinäluoma generally welcomes the measures in the Omnibus Directive but calls for a stronger supervisory role for ESMA, efficient portfolio management techniques, and measures addressing non-EU alternative investment funds (AIFs) and their managers (AIFMs) in non-cooperative tax jurisdictions.
- ESMA supervision of asset management groups: The headline proposal is for ESMA to become the supervisory authority for large asset management groups. The threshold for such groups would be based on net asset values and cross-border operations. Direct ESMA supervisory powers over depositories is another headline proposal.
- Portfolio management techniques: Safeguards for efficient portfolio management techniques are proposed to ensure investor protection and reduce conflicts of interest. These include information and disclosure requirements in prospectuses and annual reports. Importantly, these require all revenues from such practices to be returned to the fund.
- Non-cooperative tax jurisdictions: Non-EU AIFs and AIFMs would be barred from marketing in the EU if located in jurisdictions designated as non-cooperative for tax purposes or high-risk for anti-money laundering.
- Financial stability measures: Regular stress testing for open-ended AIFs is proposed.
- Remuneration policy and ESG: Variable remuneration is linked to ESG target achievement and setting a fixed-to-variable remuneration ratio.
3. Proposed Regulation on settlement finality
Rapporteur Crosetto welcomes converting the Settlement Finality Directive into a directly applicable Regulation, seeking a more coherent and harmonised framework. He aims to ensure technology neutrality to accommodate DLT, tokenisation and other emerging market infrastructure forms, whilst keeping the framework clear, proportionate and operationally workable.
- Definition: A definition of “final settlement” as “completed discharge of the obligations of the parties to a transaction in an unconditional and irrevocable manner as determined by common rules and standardised procedures to which each designated system shall comply” is added to the text of the draft Regulation. The definition of “settlement securities system” is linked to the CSDR.
- Designated systems: There are some important deletions – the joint and several liability rule for consortium system operators and the requirement for third-country systems seeking EU registration to specify in their rules the moments of transfer order entry, irrevocability and final settlement. Instead, ESMA and the European Banking Authority would specify these through two sets of RTS.
Next steps
Other members of ECON Committee may table amendments to the three MISP proposals by 16 July 2026. Thereafter the ECON Committee intends to vote on its negotiating position on the three proposals at its 1 December 2026 meeting.