Promoting SME growth markets: Commission proposal for a regulation amending the market abuse regulation and the prospectus regulation

The European Commission proposes to adopt more proportionate rules to support SME listing while safeguarding investor protection and market integrity. The initiative is confined to “SME growth markets”, a new category of multilateral trading facilities created by the Markets in financial instruments directive (MiFID II) as of January 2018 to facilitate access to capital for SMEs.

The initiative includes two texts

• a proposal for a regulation amending the market abuse regulation and the prospectus regulation
• a delegated regulation bringing technical adjustments to MiFID II, adopted by the Commission in December 2018

The new rules proposed by the Commission aim to

• reduce the administrative burden and the high compliance costs faced by SME growth market issuers while ensuring a high level of market integrity and investor protection
• foster the liquidity of publicly listed SME shares to make these markets more attractive for investors, issuers and intermediaries
• facilitate the registration of multilateral trading facilities as SME growth markets

More information:

• Press release
• Frequently asked questions
• Text of the proposal, impact assessment and summary of the impact assessment
• Feedback statement of the public consultation on building a proportionate regulatory environment to support SME listing

On 27 February 2019 Member States reached a general approach on this proposal.

• Press release on the political agreement

On 18 April 2019, the European Parliament endorsed the SME growth markets proposal.

• Press release on the final vote on the SME growth markets proposal