LSEG welcomes EC’s push for capital market integration

Corentine Poilvet-Clediere, country head for France at London Stock Exchange Group (LSEG), and chief executive of LCH SA, in a post on Thursday welcomed European Commission’s Market Integration and Supervision Package (MISP), saying it contains elements that support a more coherent supervisory framework, accelerate innovation and strengthen the level playing field across the European Union.

Centralised supervision of CCPs

Poilvet-Clediere highlighted that one of the most consequential elements of the MISP is the proposal to grant European Securities and Markets Authority (ESMA) direct supervisory authority over significant CCPs.

“While recent reviews of EMIR have moved in this direction, they have yet to deliver a genuinely streamlined and coherent framework for the supervision of EU CCPs,” she said.

Poilvet-Clediere took charge as the LSEG France country head in March 2025.

LSEG highlighted that at present, the supervisory landscape for EU CCPs remains fragmented and multilayered, combining national competent authorities, supervisory colleges and EU-level coordination.

A truly centralised supervisory model, built around a single rulebook and a single supervisor for significant CCPs, would address many of these challenges, said Poilvet-Clediere. She cautioned that the revised framework must avoid preserving the duplication and procedural complexity it is intended to remove.

Clear criteria for determining which CCPs fall under direct EU supervision, alongside streamlined governance structures and a single point of supervisory engagement, will be essential to deliver genuine simplification and enhanced competitiveness, according to LSEG, which supports EU-level oversight for index providers, as well as the principle of an associated supervisory fee framework.

The clearing giant suggested that a capped fee model would better reflect the practical realities of supervision.

Modernising settlement finality without fragmentation

LSEG also said that the transition to a new Settlement Finality Regulation (SFR) must be smooth and proportionate. It reinforced that the SFR should also provide clarity on the treatment of third-country systems, including registration criteria and the scope of finality protections. Consistency across EU legislation, and alignment between EU and third-country regimes, will be key to preventing fragmentation and preserving market confidence.

The Global Association of Central Counterparties (CCP Global) in April expressed concerns over the EC’s proposed SFR, flagging the limited protections for third-country systems, the definition of eligible participants, and the criteria for final settlement.

The European Principal Traders Association (EPTA) earlier this month said that MISP should restore pre-trade transparency obligations for exchange-traded derivatives (ETDs) block trading systems, arguing that current exemptions risk weakening price formation and liquidity in European derivatives markets.