Connecting Markets: The next chapter for European commercial paper 

Wafi Saleh - Partner and Board Member, PKF Attest Capital Markets

Twenty years after the creation of STEP, Europe’s commercial paper market is more connected than ever. Yet, despite significant progress, the market remains a fascinating blend of national characteristics and increasing cross-border integration. 

For Wafi Saleh, Partner and Board Member at PKF Attest Capital Markets, this evolution has been visible throughout his career. After nearly two decades in corporate and investment banking, advising corporates, financial institutions and public-sector entities on funding and treasury solutions, he joined PKF Attest with a mission: helping a wider range of companies access capital markets and diversify their sources of financing. 

That journey has reinforced one conviction: “Commercial paper remains one of the most effective, flexible and underutilised financing tools available to European corporates,” says Wafi. 

While Europe shares a common currency and increasingly integrated capital markets, commercial paper still looks different from one country to another. France's well-established NEU CP market stands alongside international ECP structures, while countries such as Spain have successfully expanded access to mid-sized and non-rated issuers. Italy, meanwhile, represents one of the market's greatest untapped opportunities, with many eligible companies still heavily reliant on bank funding. 

Yet the direction of travel is clear. “Investor demand is becoming increasingly pan-European,” he explains. Asset managers, insurers, bank treasuries and corporate treasurers are investing beyond their domestic markets, supported by initiatives such as STEP that promote common standards and greater transparency. 

“The exchange of ideas between markets is one of the most powerful drivers of future growth,” says Wafi. Mature markets demonstrate the value of transparency, governance and standardisation, while developing markets often bring innovation, flexibility and a willingness to broaden the issuer base. Together, these strengths are helping commercial paper evolve from a local funding product into a truly European asset class. 

The greatest opportunity now lies in expanding participation. Across Europe, hundreds of companies have the size and financial profile to access commercial paper markets but have yet to do so. Many still perceive CP as a funding tool reserved for large multinationals, when in reality it can provide a cost-effective and flexible source of funding for a much wider range of issuers. 

“Education, therefore, remains critical,” he emphasises. Companies need greater awareness of how commercial paper can complement traditional bank financing and strengthen funding diversification, particularly in an environment where access to multiple liquidity sources has become increasingly important. 

“Transparency and standardisation will continue to play a central role,” Wafi explains. Investors allocate capital more efficiently when issuers can be compared across jurisdictions using common standards, while issuers benefit from broader investor access and more efficient execution. Over the past two decades, STEP has been instrumental in fostering that common framework, helping connect markets while respecting their local characteristics. 

Looking ahead, the next phase of growth will be driven by three forces: a broader issuer base, greater cross-border participation and continued digitalisation. Together, they have the potential to make commercial paper markets deeper, more accessible and more resilient. 

The European CP market has come a long way since STEP was launched. “The challenge now is no longer simply connecting markets. It is unlocking participation,” says Wafi. And that may prove to be the greatest opportunity of all.