The Council of the European Union agreed on the key elements of its negotiating position for a market integration and supervision package intended to make capital flow more readily across national borders.

Under the Council approach, the European Securities and Markets Authority would directly supervise the most significant cross-border trading venues, central securities depositories and central counterparties. Only the most significant cross-border crypto-asset service providers would move immediately to ESMA oversight.

The package also proposes an optional pan-European market-operator framework, a new full-time ESMA executive board and measures to simplify cross-border asset management. Member states could choose whether to allow investment funds to appoint a depositary in another EU country.

The political agreement is not final legislation. The Council must finalize and formally adopt its position, and negotiations can begin after the European Parliament adopts its own position on the three-part legislative package.