From market initiative to a European label for transparency

As STEP (Short-Term European Paper) marks its 20th anniversary, it stands as an important milestone in the development of European short-term funding markets.

Launched in the early 2000s by ACI FMA at the invitation of the ECB, the initiative was designed to address the limited development and integration of European short-term paper markets. The STEP label was introduced to improve transparency and standardisation in what remains a fragmented landscape, and to support the emergence of a more integrated pan-European market.

Jointly promoted by the European Money Markets Institute (EMMI) and ACI FMA, STEP reflects a shared commitment to transparency and standardisation. This article brings together perspectives from their respective CEOs.

Jean-Louis Schirmann, CEO of EMMI and Chair of the STEP Market Committee, recalls that the objective was to create “a labeling system attesting to a high standard of transparency and harmonisation,” while respecting the diversity of national markets.

Building a common framework

Rather than replacing existing structures, STEP was designed as an inclusive framework. It allows programmes governed by national laws to align under shared standards, without imposing a single model.

As Jean-Louis Schirmann explains, the initiative provides “a common base of programs in Europe,” improving comparability while preserving flexibility for issuers. For him, “harmonisation and transparency are at the heart of everything we do at EMMI,” and remain central to STEP’s role in supporting well-functioning markets.

Jean-Louis Schirmann, CEO of EMMI

Driving transparency and market practices

Over the past two decades, STEP has contributed to improving transparency, comparability and market practices across European short-term markets.

Jean-Louis Schirmann notes that the initiative has helped establish a consistent framework that supports market confidence and accessibility. In parallel, Rui Correia, CEO of ACI FMA, highlights that STEP has played a key role in strengthening standardisation and creating a more level playing field across Europe, while also contributing to the broader development of the Capital Markets Union.

He also points out that standardised documentation, improved access to data and enhanced disclosure practices have supported more consistent and harmonised approaches across commercial paper programmes.

Rui Correia, CEO of ACI FMA

Looking ahead

Short-term funding markets remain essential for both issuers and investors, particularly in a context shaped by geopolitical and economic uncertainty.

Rui Correia underlines the distinct role of short-term securities in providing non-collateralised funding. These instruments provide a source of liquidity that complements collateralised markets and contributes to the overall functioning of the financial system. He also highlights their transparency and transferability and stresses the importance of ensuring that regulatory frameworks recognise their role in supporting market liquidity.

At the same time, ongoing developments such as tokenisation, digitalisation, evolving settlement cycles and instant payments are expected to shape the future of these markets and require continued adaptation from market participants.

In this context, EMMI and ACI FMA are working jointly to further strengthen the STEP programme, with a particular focus on enhancing the depth and usability of STEP statistics and ensuring alignment with evolving market and technological developments.