Communication on the applicable law to the proprietary effects of transactions in securities

Background and further information:

The Commission's priority is to further strengthen Europe's economy and stimulate investment to create jobs and sustain growth. In order to reach this objective, there is a need for stronger, deeper and more integrated capital markets. Efficient and safe post-trade infrastructures are key elements of such well-functioning capital markets.

Following on from the Action Plan on Capital Markets Union (CMU), in June 2017 the Commission's Mid Term Review set out the remaining actions which will be taken to put in place the building blocks of CMU by 2019, with the objective of removing barriers to cross-border investment and lowering the costs of funding. Completing the CMU is an urgent priority.

As part of the CMU Action Plan and the Mid Term Review, the Commission announced targeted action to reduce legal uncertainty on cross-border transactions of securities and claims. This Communication and the legislative Proposal on the law applicable to the third-party effects of assignment of claims, presented in parallel, implement this commitment.