Moreover, the elements of discretion need to be implemented without compromising the level playing field in banking and the integrity of the internal market. In some respects, the proposed Regulation does also differ from the Group’s recommendations. The Commission’s proposal includes an outright ban on organised proprietary trading instead of requiring it to be assigned to a separate and separately capitalised legal entity.
Even though the definition of proprietary trading is rather narrow, the Commission proposal resembles the structural reform implemented in the United States. The Commission proposal is now in the hands of the Council and the European Parliament. Banking Union Today, our focus is on the Single Supervisory Mechanism, an important element in the European Banking Union.