The European Union will propose “quick fixes” to liberalise its capital markets rules in coming days, which it says are aimed at encouraging investment in companies hurt by the coronavirus crisis, EU documents showed on Wednesday.
The package will include looser rules on the funding of broker research into small and medium sized companies and the lifting of restrictions on trading energy derivatives.
Though the immediate impetus is the coronavirus crisis, many of the changes are expected to be permanent, with more changes expected as the EU aims to build a Capital Markets Union and compete with post-Brexit London as a finance hub.
The changes also mirror a string of quick fixes in banking rules to ensure the continued flow of credit to companies and households hit by lockdowns.
“EU member states have been severely affected by the economic crisis resulting from the COVID-19 pandemic,” the draft documents seen by Reuters say. “This calls for a quick reaction to support capital markets participants.”