ISDA Position Paper on EC Market Integration and Supervision Package Proposal
Summary
ISDA published a position paper on March 30, 2026, responding to the European Commission's Market Integration and Supervision Package (MISP) proposal. The paper outlines four key reform recommendations: sequencing of Level 1 and Level 2 legislation effective dates, enhancement of no-action relief processes, inclusion of a secondary competitiveness mandate for ESMA, and provisions addressing supervisory failures and service suspensions. The MISP falls under the EU Savings and Investment Union agenda and is currently subject to political negotiations.
What changed
ISDA submitted its position paper on the European Commission's MISP proposal to the European Parliament, Council of the European Union, and European Commission on March 20, 2026. The paper addresses four areas of concern: appropriate sequencing of effective dates between Level 1 primary legislation and Level 2 technical standards; further enhancement of no-action relief processes; inclusion of a secondary competitiveness mandate for ESMA; and supervisory failure provisions and service suspension mechanisms.
Compliance teams at derivatives market participants should monitor the MISP proposal as it progresses through EU political negotiations. While ISDA's position paper is non-binding advocacy, the recommendations could influence final legislation. Financial institutions transacting in EU derivatives markets should track ESMA's evolving role under the MISP framework and review no-action relief procedures for potential changes.
What to do next
- Monitor MISP legislative progress through EU Parliament and Council negotiations
- Review ISDA position paper PDF for detailed reform recommendations
- Track final MISP text for changes to ESMA mandates and supervisory powers
Source document (simplified)
- Public Policy
- Europe
- ISDA Paper on EC’s Market Integration and Supervision Package Proposal
ISDA Paper on EC’s Market Integration and Supervision Package Proposal
On March 20, ISDA shared its position paper on better regulation and supervision within the European Commission’s (EC) Market Integration and Supervision Package (MISP) proposal with decision makers in the European Parliament, the Council of the European Union and the European Commission, outlining reform proposals on several issues, including:
- Appropriate sequencing of the effective dates in Level 1 (primary) legislation and the technical standards adopted at Level 2, which are meant to provide detail supporting consistent, definitive implementation of Level 1 legislation in financial services across the EU;
- Further enhancement of no-action relief processes;
- The inclusion of a secondary competitiveness mandate for the European Securities and Markets Authority; and
- Supervisory failures and suspension of services. The EC’s MISP proposal falls under the Savings and Investment Union agenda and is currently subject to political negotiations in the EU.
Tags:
Advocacy, ESMA, European Commission (EC), Regulation
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