EU finance ministers agreed key elements of a negotiating position on 9 October that would put major cross-border market operators under direct ESMA supervision. The intended commercial effect is more consistent oversight for firms expanding trading and post-trade services across member states.[1]
The agreement advances the market integration and supervision package, first proposed by the European Commission on 4 December 2025. The Commission’s diagnosis was operational as well as economic: financial firms still face different requirements and supervisory practices across member states, making cross-border business harder to scale.[2]
The proposed scope is selective
Council approach to market supervision
| Operator or route | Proposed treatment |
|---|---|
| Major trading and post-trading operators | Direct ESMA supervision for the most significant cross-border venues, central counterparties and central securities depositoriesSource 1 |
| Other trading venues | Voluntary pan-European market operator status: one licence for multiple EU venues under ESMASource 1 |
| Crypto-asset service providers | Only the most significant cross-border providers, replacing the Commission’s proposed blanket coverageSource 1 |
A market-access reform with a practical infrastructure effect
The Commission’s case also rests on scale. Stock-exchange capitalisation was 73% of EU GDP in 2024, against 270% in the United States, according to its package overview.[2]
The original package comprises a master regulation, a master directive and a proposed settlement-finality regulation. Its design therefore addresses trading, investment services and post-trade infrastructure through connected changes to several legal frameworks.[2]
Our assessment is that the brokerage relevance lies in the infrastructure connecting a trade to its clearing and settlement. Common cross-border supervision could simplify an operator’s engagement with authorities when expanding into additional markets, particularly where national requirements and practices currently differ.[2]
Who would take the supervisory decisions
The Council envisages a full-time executive board comprising a chair and five independent members to run operations and take decisions about directly supervised entities. A separate board of supervisors would retain regulatory policy, strategy, budget and supervisory-convergence responsibilities. National authorities would therefore continue to have a formal role.[1]
The proposed handover uses ESMA-led teams of EU and national experts during a two-year transition, followed by continuing cooperation. Its timing depends on the legislative process. For a broker or service provider, the resulting change in supervisory relationships would turn on the eventual criteria for its venue, clearing house or crypto counterparty.[1]
The immediate next step is to finalise the negotiating text in line with the political agreement and obtain formal Council adoption. Talks with the European Parliament can begin once Parliament adopts its own position. Final legislation is still required before existing supervisory responsibilities change.[1]
Sources & further reading
- Council agrees key elements of market integration and supervision package Council of the European Union · 9 Oct 2026 · Accessed 15 Oct 2026
- Market integration and supervision package: original proposals and policy rationale European Commission, DG FISMA · 4 Dec 2025 · Accessed 9 Oct 2026
- Carlo Comporti appointed chair of ESMA Council of the European Union · 9 Oct 2026 · Accessed 9 Oct 2026