Recommendations to the draft OECD long-term financing principles

This FESE position paper calls for a policy shift to better support long-term investment and capital formation in Europe. Despite their vital role in funding companies and fostering job creation, Regulated Markets are being sidelined by regulatory and structural changes that overly favour short-term trading in large-cap stocks. This contributes to the erosion of exchange-traded derivatives business in the EU.

Declining IPO activity is limiting access to capital for small and mid-sized companies, undermining growth, job creation, and investment diversification. The paper urges policymakers to rebalance regulation to restore capital markets as effective channels for financing the real economy.